Uber Eats eyes considerable share in $20 million food delivery market

Uber Eats is eyeing a considerable share in the $20 million food delivery market in India as a mere five per cent share by the organised segment presents a huge potential for it to grow in the space.

By the end of December 2018, it plans to increase its presence significantly in the 11 cities it operates in and is evaluating other cities and towns as well for future expansion.

Asked about the company’s next phase of expansion in India, Bhavik Rathod, head of Uber Eats said, “The growth rate among our restaurant partners is 3-4 times and we have 12,000 restaurant partners in India. The food delivery market is in a nascent stage and the opportunity in this space is huge. There is a potential to grow manifold”.

Uber’s ride services are currently present in 30 cities in the country and it is likely that Uber Eats will expand to cover those cities and towns where app cab services are offered. Out of these 30 cities, 11 cities are presently covered by Uber Eats.

Under the business model, the company charges a commission from the listed restaurants on its app when an order is delivered via its app. For the delivery partners, Uber Eats is following the similar model it uses the app cab service. The delivery partner needs to own a two-wheeler and enrol with Uber Eats.

It claimed that globally, it covers 220 cities and has 80,000 restaurants as partners of which 12,000 are in India. Globally the average time to deliver an order is 35 minutes while in India the same is less than 32 minutes.

The company is also evaluating possibilities of partnering with street food makers in Kolkata. Based on the response, it may later be extended to other cities as well.

In India, Uber Eats was first launched in Mumbai in May 2017 and now covers Mumbai, Delhi, Gurgaon, Bangalore, Chennai, Chandigarh, Hyderabad, Pune, Kochi, Jaipur and Kolkata.

Part of features like restaurant delivery times and others in a particular location have also been embedded in the Uber app, which is used to book a ride. However, to order food, users will have to use the Uber Eats app.

Rathod said that machine learning technology is used in the app so that it learns consumer behaviour and can suggest restaurants and menu as per the consumer’s preference or choice.

A delivery charge between Rs. 10-25 is levied on the orders placed on its app.

Uber Eats was started in 2014 as a small delivery pilot in Los Angeles and launched as a separate application in Toronto in December 2015.