Insight about UberEats which has been very successful
Bob Gordon who is the owner of a restaurant in Brooklyn availed the services of an external source- UberEats which is an offshoot of the ride-hailing giant Uber and there was an influx of orders and sales. He is very busy right now
Gordon is only an example of how Uber has made use of the domain related to food delivery. The new CEO of Uber has his focus related to a public offering in the coming 18 or 36 months. It is a general view that UberEats will contribute to profound success and progress
UberEats is a mile apart from Uber where the delivery service featured worldwide in several markets have surpassed the services of the latter.
The UberEats trips associated featured a growth by more than 24 times when evaluated with the timeframe between last year’s March and that of this year.
Jason Droege who is the Vice President of UberEverything noted that as more and more people manipulate smartphones, it has promoted a revolution related to how people eat.
Uber was a relative latecomer to this domain which is valued with a worth of more than $100 billion
The aspect of food delivery is classified into two categories where the first one is the manipulation of aggregators like Grubhub which makes the eateries to take responsibility for the delivery and the second category is related to full delivery services like UberEats, which assimilate the orders through a digital portal and do the delivery. Both the restaurants and the user base will be charged for the service.
The market related to this domain is subject to intense vying. Postmates which debuted 6 years back has raised a sum of more than $250 million and Grubhub’s total food sales amounted to $3 billion last year. The latter featured 8.17 million customers. The market is incomplete without the threat of Amazon which is also looming. Amazon which purchased Whole Foods opened up a domain for hundreds of drivers to deliver prepared food in the localities where takeouts are enjoying a free reign. Amazon is seen as a threat to other enterprises.
Uber’s first venture in this food delivery domain was in Los Angeles 3 years back under the name UberFresh which dealt with prepackaged food from the eateries. It also tested out UberEssentials which was seen as a means to deliver pantry items instantly.
However, the deal did not prove satisfactory as the drivers typically placed the food in their car trunks leading to concerns about the food quality and the grumbling of the users that the food arrived cold. The users also wanted a wide range of selections related to eateries. This is done by Postmates.
2 years back Uber launched UberEats in Toronto where it collaborated with eateries to furnish freshly cooked food which can be ordered through a smartphone. With the launch and in the next 18 months, it acquired several more restaurants to its base and launched in other cities as well.
UberEats now dominates with many benefits over competitors. Uber features 2 million drivers who can deliver the food and the cars associated with the same have some leniency-related to the guidelines to accommodate passengers.
Delivery is enhanced as Uber did a detailed groundwork in analyzing the best routes. To circumvent what UberFresh met, the brand has incorporated more drivers to its kitty and has integrated with the latest technology. UberEats makes sure that the drivers pick up and deliver the food to the customers once the food is ready.
UberEats has also partnership associations to accelerate its growth in a method mirroring other companies. A notable example is when Uber made a deal with McDonald’s. The deal was very much effective.
Uber has made strides to enhance UberEats so that the sales force is augmented. It also recruited professionals who could research the underlying logic related to user base preferences so that the eateries can serve more effectively and brand their best dishes.
Coming back to Gordon again, the venture taken by UberEats has served effective and the service has paved way for his restaurant to reach out more customers from the existing ones. This was done without investing in branding through Facebook and Groupon as associated previously.