After posting less-than-stellar results in its second quarterly report—an over $5 billion loss, to be exact—Uber is seeking out alternatives to bolster its profit margin. Where is it looking first? Grocery delivery.
“There is a bit of an e-commerce ‘moment’ that is happening at a local level. That’s a lot of what we are investing behind here,” Jason Droege, Head of Uber Eats, told Financial Times.
With Uber Eats accounting for a 72 percent revenue gain year-over-year, it stands to reason that this division could be the saving grace of the ride-share company. According to the company’s financial report, in Q2 2019 alone, Uber Eats grew over 140 percent. Uber Eats restaurant selection also continued to improve, reaching 320,000 restaurant partners at the end of Q2 2019.
If Uber does go down this road, it will use its network of over 4 million drivers to tackle what it sees as a divide between Amazon-style warehouse delivery and more traditional grocery delivery services like Instacart and Ocado.
How will this strategy shape up for the company? Deli Market News will continue to report.