The company’s customers aren’t very loyal, so Uber is slashing prices.
Uber’s fastest growing line of business, Uber Eats, is facing stiff competition. In the first quarter of 2019, 46 percent of people who ordered Uber Eats in the US also ordered from one or more of its competitors, according to new credit and debit card purchasing data from Second Measure. As US customers are increasingly using more than one food-delivery app to order meals, apps like Uber, DoorDash, and GrubHub are in a “pricing race to the bottom.” It’s a problem that Uber knows all too well in its main line of business, ride-hailing. Regardless, Uber’s food delivery service “does have some advantages,” as the company “can share technology” across its ride-sharing and other apps, and “has an existing network of drivers.”