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Uber Eats announces its plan to conquer the US suburbs [The Verge]

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RideGuru
295 Driver Driver Rider Guru
 Posted 6 months, 3 weeks ago

By the end of the year, Uber’s food delivery business aims to cover 70 percent of the US

Uber Eats, the ride-hailing company’s food delivery arm that’s critical to Uber’s plan to go public in 2019, has galloped across the globe in recent years, but it has also struggled to reach certain pockets of the US. The company aims to change that over the next few months, announcing on Tuesday an ambitious effort to reach 70 percent of the US population by the end of 2018.

Currently, Uber Eats covers a little over 50 percent of the US population, delivering food for an estimated 100,000 restaurants. So an increase of 20 percent in just two and a half months is certainly an aggressive growth target.

In order to achieve this goal, Uber Eats is targeting mostly less-dense suburban communities, which is the type of market where its core ride-hailing business has traditionally struggled to gain a foothold. Uber Eats hopes to find success by partnering with huge restaurant chains like Red Lobster and TGI Friday’s and changing the signup process for new restaurants to make it less cumbersome for smaller operations.

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    LG-PA
    793 Driver
     6 months ago

    Not so sure this will actually happen.

    I had never done a single Uber Eats Delivery and am pretty sure many drivers on here look at doing deliveries as enthusiastic as doing pool rides:)

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      ChrisWeston
      90 Rider
       6 months ago

      Right. There’s a doubt on the economics of it.  It’s hard to make money for drivers and it’s arguable whether people will pay the premium to get food delivered. 

      Also remember, people in the suburbs already have cars and have the means of picking up the food on their own. 

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    Bigfrank
    333 Driver Driver Rider
     6 months ago

    Don't forget to blow snots into their salads for not tipping

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    RedANT
    943 Rider Driver
     6 months ago  (edited 6 months ago)

    Yet again, more pre-IPO Uber PR hype. 

    Uber is blowing hot air, hoping that useless media will repeat the information without asking Uber in depth questions on how they plan to make this work.  Just as planned, one outlet reports it, and the rest of the flock of parrots repeat it to the rest of the world. 

    To make UberEats work, Uber needs:

    1.  Affiliate Restaurants;

    2.  A customer base capable of supporting the service;

    3.  Drivers;

    My understanding is that UberEats, like many of the delivery companies, takes 20-30% of all orders delivered.  In surburbia you're not going to find a lot of businesses that can eat that fee outside of large chain restaurants, leaving UberEats with predominantly fast food delivery.  Uber may have the McDonalds agreement tied up, but Grub Hub has Burger King and Subway, Door Dash has Wendys and Taco Bell, so there aren't many other places UberEats can turn to.  Considering how horrible the UberEats syste...

    Read more...

    Yet again, more pre-IPO Uber PR hype. 

    Uber is blowing hot air, hoping that useless media will repeat the information without asking Uber in depth questions on how they plan to make this work.  Just as planned, one outlet reports it, and the rest of the flock of parrots repeat it to the rest of the world. 

    To make UberEats work, Uber needs:

    1.  Affiliate Restaurants;

    2.  A customer base capable of supporting the service;

    3.  Drivers;

    My understanding is that UberEats, like many of the delivery companies, takes 20-30% of all orders delivered.  In surburbia you're not going to find a lot of businesses that can eat that fee outside of large chain restaurants, leaving UberEats with predominantly fast food delivery.  Uber may have the McDonalds agreement tied up, but Grub Hub has Burger King and Subway, Door Dash has Wendys and Taco Bell, so there aren't many other places UberEats can turn to.  Considering how horrible the UberEats system is setup, I'd be surprised if anyone chooses to jump ship to affiliate with Uber.  UberEats will essentially be known as McDonalds delivery.  FAIL.

    To make money, Uber needs a lot of customers to entice partner restaurants.  They don't have it.  Suburban soccer mom households aren't going to switch to dinner delivery from UberEats.  People may come in the beginning to take advantage of money losing discounts courtesy of UberEats, but people aren't going to stick around for an UberEats service that is known for sucking. 

    Finally, to make things work, Uber is going to need tens of thousands of delivery people.  Where are they going to find those people?  The people most likely to be open to delivery are the same people Uber has been screwing as drivers.  Like the vast majority of drivers, people aren't going to sign up for Uber, and once people start getting "paid," even those numbers will wither and die.  (Or am I missing something and the current UberEats delivery people are really making bank?) Most probably, any potential delivery people are already delivering other foods.  Do you think Dominos, Pizza Hut and chinese restaurant delivery drivers are going to leave their jobs for Uber?  LOL @ them if they do.

    Like everything Uber does now, it's all for show to build their house of cards.  It isn't mean to be sustainable, just enough to prop things up until after their IPO. 

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    ClancyJones
    60 Rider
     6 months ago

    This is interesting because they are trying to disrupt this but there’s no existing business model and precedence they’re replacing. Yes some people order food in the suburbs but not all the time. So I guess Uber will make it affordable but it doesn’t mean more people will order it.  Or will they?

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    emerymahon
    48
     6 months ago

    Why is Uber trying to focus so much on food? I wish they would stick to rideshares.

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    Chelly
    64
     6 months ago

    I would love more food options in the suburbs but not from red lobster or tgif...

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    FannyPack24
    65
     6 months ago

    How would the drivers make money, especially in the suburbs.  I can't see the economics workng. I am a driver and they need to make my time worth it. but I can't imagine people paying the uptick

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      JBurd
      183 Rider
       6 months ago

      The concept already exists in the form of Chinese and Pizza delivery. So the finances and the model must work.

      The problem as I see it? It's the downtime for the drivers. The time between the deliveries that will kill them.

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    TonyAlmeida
    998 Rider
     6 months ago

    This is according to Uber, so let's take it with a grain of salt.

    If anything, it does show their commitment in making this successful.

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    DonutDrivers
    235 Driver Driver
     6 months ago

    Nooooo, Say it ain't so...!!

    I do not want to drive UberEats, sam i am...