Uber’s food delivery is attracting share of customers

For Uber, the route to new customers may be through their stomachs. Uber’s food delivery service is attracting an increasing share of customers who have never used the ride-hailing app, as the fast-growing unit expands beyond Uber’s core markets. Forty per cent of people now ordering food through the app are new to Uber, compared to a third earlier this year… When Uber Eats launched as a standalone app in December 2015, the company focused on adding food delivery in places where it offered rides. This allowed it to tap its existing base of customers and drivers and its technology to route vehicles around a city to quickly build the service… Uber Eats has added nearly 100 new cities in Europe, the Middle East and Africa this year, and expanded to suburban areas in North America… The strategy has also allowed Uber to make inroads in countries such as Japan and Italy, where taxi markets are highly regulated and its main ride-hailing business is not available… In cities where Uber offers both delivery and rides, its ride-hailing and Eats apps can interact so that a passenger in an Uber car can order a meal to be delivered to her destination in coordination with her arrival.

Shannon Bond