UberEats Is the Most Profitable Part of Uber

RunWithScissors

Well-Known Member
https://www.eater.com/2017/9/25/16360594/ubereats-profitable-uber

Despite its rapid expansion and cultural ubiquity, Uber — the ride-hailing app plagued by corporate scandals and publicity nightmares — has yet to turn a profit. But there is one part of its business that’s raking in dough: food delivery. According to the New York Times, “As of July, UberEats was profitable in 27 of the 108 cities where it operated,” with use of the food delivery app outpacing Uber’s ride-sharing service in cities such as Tokyo and Seoul.”

Despite being a fairly late entrant into the delivery game — the standalone UberEats app launched in late 2015 — and facing stiff competition from the likes of Grubhub and Postmates, UberEats has been massively successful. Thanks to its existing presence in hundreds of cities across the globe, a gigantic network of 1.5 million drivers, and widespread brand recognition, UberEats is crushing it: As of the first quarter of 2017, it had more than 8 million active users in the U.S. alone.

It’s also growing incredibly fast: “The number of trips taken by UberEats drivers grew by more than 24 times between March 2016 and March 2017,” the Times reports. As demand for food delivery continues to ramp up — and restaurants adapt accordingly — UberEats’ future growth is seemingly only limited by its customers’ appetites. Of course, it will remain to be seen what kind of competition it will face from Amazon, which has steadily been growing its own food delivery business and stands to expand it further with its recent acquisition of Whole Foods.


add: One Surprise Standout for Uber: Food Delivery
https://mobile.nytimes.com/2017/09/...m/2017/9/25/16360594/ubereats-profitable-uber
 

LoveBC

Well-Known Member
27 out of 108 cities.... profitable in 25% of its cities. That's NOT successful by any measure!

I love Eats pings just because I know Uber is most likely losing money. How many Eats orders are more two items? In my experience it's all small orders. The 30% of that small order barely balances out the mileage they pay
 

LoveBC

Well-Known Member
What's amazing to me is only one restaurant I know of charges more on Uber eats to accommodate that 30%commision.

If you look at the math Uber is only gonna make money off of large orders. Nearly every order I've ever done was one or two items.
 

Kodyhead

Well-Known Member
What's amazing to me is only one restaurant I know of charges more on Uber eats to accommodate that 30%commision.

If you look at the math Uber is only gonna make money off of large orders. Nearly every order I've ever done was one or two items.

I agree you would think they would have a min order of $20 or something but i guess they want to get people to get used to and addicted to it.

I used to use it but stopped when i found out they charge the restaurant 30% or 35% i forget.

Fwiw i think the app is great, but if the restaurant delivers already, you usually are better off ordering directly from the restaurant for the reason you mentioned as any promotion, coupon or deals they have will not be on the EATS app especially pizza places.
 
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