UberEats, the food delivery sub of Uber Group has been growing in volumes and profitably embraced by many consumers worldwide.
It’s now confirmed that UberEats accounted for almost a tenth of the company’s global gross bookings in the 2nd quarter.
Industry stakeholders and analysts are of the view that, with the explosion in sales figures, the unit is on track to exceed $3bn in gross says this year.
Since the launch of the standalone app two years ago, coupled with the unreported sales figures, it shows how geometric the growth of the brand.
The San Francisco based company, which has encountered some challenges in recent times, including the sacking of Co-founder, Travis Kalanick in June.
In the 2nd quarter, managed to get reviews for progression and rare profitability.
Uber-Eat accounted for 10% of World gross bookings, which depicts $700m to $870m of gross turnover for the food delivery brand. Brandcampaign.com.ng gathered that . Uber’s gross turnover bookings were $8.7b for the period.
One of the food company’s competitors, Grub Hub, the US food delivery company, valued at $4.1bn, posted $880m of gross food sales in the 2nd quarter.
Interestingly, while Uber still gets many of its income from its well established transportation service app, Uber –Eats has been posting encouraging results,
Presently, it is reported that UberEats now has presence in 29 countries, while with its rapid growth of it is expected to be present in nearly 200 cities by the end of this year.
The food delivery market is getting so intense and competitive as many other brands jostle for market ownership and leadership. Just recently, Facebook launched a food delivery service in the US, in 2015, Amazon Restaurant made a bold entry while smaller competitors such as Postmates, Doordash, Deliveroo are also competing for market share.
Brandcampaign.com.ng can authoritatively state that a competitive advantage for UberEats , is its capacity and prospect to ride on the success of its fleet of more that 2m Uber drivers around the globe who can carry either passengers or food in cities that have Uber-Eats.
In the words of, Head of research at Sharespost, Rohit Kulkarni, Uber’s advantage lies “in terms of convenience and speed of delivery” due to its number of drivers and “Network effect” He said.
“At a certain density, you are able to offer services that are very hard for everyone else to replicate.”
With the successful operation of UberEats and other smaller but competing brands in the food delivery business, it is expected that more brands would soon join the fray.