An insight about UberEats and its goal for the year

Uber’s extension related to food delivery has thrived well enough that it is generating revenue in billions of dollars for the ride-hailing service giant which is based in San Francisco.

As per what The Financial Times noted yesterday, Uber’s offshoot UberEats factored for almost 8 to 10% of the brand’s worldwide bookings.

The Financial Times revealed statistics where it was noted that the UberEats app which has been providing its services and operations for 2 years to be precise. The expansion app of Uber, the original which offers services related to taxi availing was reportedly supposed to gain a gross of over $3 billion with respect to sales in the current year.

Regarding the same, there was reluctance from Uber to give its view on the same.

Coming to Uber, it has been on a rough ride this year. Some instances include the video of its former CEO and founder Travis Kalanick admonishing a driver, his resignment amidst mounting pressure, several lawsuits filed globally and one of the recent major blows to the ride-hailing giant was that it was declined the license to carry out its services in London in the later days of the previous month.

However, UberEats has been well embraced and it is currently functioning in 108 cities in over 29 countries. Its momentum and speed are rapidly escalating where its main goal is to be associated with 200 cities within this year’s end.

The Financial Times noted that the related turnover associated with the second quarter of the year increased from $ 700 million to $ 870 million. Related to the same timeframe, the brand’s overall booking accumulated to $8.7 billion.

The underlying logic behind Uber’s venture into food delivery is handled by Uber’s driver base of more than 2 million. They deliver food and in addition riders as well related to some markets along with UberEats courier fleets as well.

It is signified that the mean UberEats service order which comprises of the food item cost and the delivery fee, is more than that associated with a normal Uber ride.

Coming to pitfalls, UberEats has not been thriving well in several markets and it is deemed as a profit only in some 27 metropolises. Adding to the woes is that there is intense vying in the related food delivery market.

The chief rivals for UberEats in the US are with GrubHub and in case of the United Kingdome, it faces competition from Deliveroo. Further, Amazon has also ventured into developing its own food delivery services named Amazon Restaurants. This is featured for the Prime Members. In addition, the social media giant Facebook also rolled out a food delivery service in the previous week in the United States.