Among the various new locations that UberEATS is entering, the food deliver service will launch for the first time in Kenya, Ukraine, Romania, Egypt, Ireland, and the Czech Republic. Uber Eats is a food delivery platform that aims to assist consumers in obtaining food from local restaurants. Through an app, UberEATS connects the consumer with a range of local restaurants and food.
Moving UberEATS into new markets appears to be a top priority according to CBI Insights, who have produced a Uber Strategy Report. Uber is increasingly known for a variety of services, and despite some adverse publicity the company continues to grow under the leadership of its new chief executive and former Expedia head Dara Khosrowshahi. The company also has a strategy of going public within the next 18-36 months through an IPO. This means that Khosrowshahi needs to strike a balance between financial discipline while, at the same time, maintaining growth.
The food deliver market is, however, a crowded space. Uber will be competing alongside companies like GrubHub, Caviar and Amazon (via Whole Foods). Food delivery is valued in excess of $100 billion, which represents about 1 percent of the total food market, based on a study by McKinsey.
Uber strategy appears to be that it has an edge of its rivals in logistics, with experience drawn from its ride-hailing business, according to a report by CNBC. There is work still to be done, however, to maximize this market and to turn a profit.
According to Business Insider, UberEATS is profitable in only 27 of the 108 cities that it currently operates in. This indicates that the service will need to continue to work hard in order to become more efficient.
Nonetheless, the developments from Uber along with its rival companies signals a change in the way many consumers wish to access meals, especially millennials. Demand for food delivery continues to ramp up and this is causing many restaurants adapt accordingly.
