Uber Ventures into Food Delivery via UberEats

Footprint Café is a Rasta Pasta restaurant located in Brooklyn, New York. The business has been under the ownership of Bob Gordon who used to deliver food to his customers. While speaking to the Times, Mr. Gordon says that he was nervous when he decided to try UberEats. For starters, this the delivery arm of Uber, the ride-hailing giant from San Francisco. Once he tried the application, the owner says that orders started flowing in. He admits that he wasn’t prepared to handle such kind of orders. He says that he was forced to work in the kitchen for three weeks so that he could keep the orders flowing. This is a tactic that Uber has implemented by separating it’s serviced from the crowd and going into food delivery. UberEats is believed to have the potential to generate the enormous company revenue. However, this comes at an opportune time as Uber through its new chief executive Dara Khosrowshahi is doing a thorough analysis on the company. The executives want to take the company public meaning that they must address the issue in terms of strengths and weaknesses. The chief executive says that the new venture had emerged as a wonderful surprise. This comes at a time when Uber is trying to convince London officials to renew their business license.

The new business stands out of the rest of Uber’s unprofitable business. At the moment, services offered by UberEats are available in over 120 markets around the world. This means that its services are available in Seoul, South Korea, Taipei, Taiwan as well as Tokyo, Japan. Statistics show that trips made by UberEats drivers had increased significantly from March 2016 to March 2017. The trips had increased by a factor of 24 times. While the company refused to reveal the revenue generated from the new service, it was revealed that the company is profitable in 27 out of the 108 cities that the business operates in. According to UberEverything vice president, there is a global trend that is favoring food delivery. This has increased as people continue to use phones in their daily routines. At the moment, food delivery is a $100 billion industry which amounts to one percent of the total food market in the US. This is according to a study that was conducted by McKinsey. This is an industry that has been dominated by Grubhub. Another food delivery competitor is Postmates. UberEats comes at third.