For those who still have a chance to stay home or simply prefer home delivery rather than having to go shopping themselves, Uber announced that it is launching a grocery delivery service in Canada and some Latin American countries.
Uber is taking an important step to enter this market after the approval of the majority acquisition of Cornershop, a Chilean company that has the highest percentage of customers and sales in the category in countries such as Chile, Mexico, Peru, Canada, Brazil and Colombia. However, in a statement the company clarified: “This integration does not include Mexico, where Uber and Cornershop continue to collaborate with the regulatory authority, the Federal Commission on Economic Competition (COFECE), in the corresponding evaluation process to reach a prompt resolution on the transaction “. In countries where they will start operating, a new platform will not be launched so that users can request their purchases, but it will be available through the main Uber and Uber Eats application.
“Customers will see food delivery available at local grocery stores and be able to receive their orders in as little as one or two hours,” said Uber Eats product manager Daniel Danker.
Customers will be able to buy different products and use the same means of payment that they already have registered in their Uber apps. They can also program the date and time to receive the order. As of today the service is available in 19 cities in Latin America and Canada. And, the company noted, they plan that, by the end of this month, the option will be available in the United States, where users who are part of the subscription services of Uber, Rider Pass and Eats Pass will be able to access offers as deliveries. free on certain orders. The way is not easy because, although they are already a recognized company, there are several services available for grocery delivery. Furthermore, supermarkets themselves often have their own online shopping platform. Even so, this model has not fully convinced consumers who prefer to go directly to stores mainly for fear of overpaying or that their groceries do not arrive on time.
Apparently, the company is looking for new business models and also to strengthen its operations in which it already works, since only on Monday it was announced that it would compare the company Postmates for an amount of 2,650 million dollars. Uber is struggling to expand its food delivery options as the coronavirus pandemic continues to hit its core passenger transportation business. According to his latest income report, his travel business decreased approximately 80% in April alone and now that the number of infections is increasing in many parts, his losses in this area could continue to increase.
However, its food delivery service experienced 54% gross sales growth during its fiscal first quarter. The company’s figures reveal that food delivery has seen an acceleration in demand since mid-March, with 89% gross growth for the month in April alone. Although it can be said that its success has not been guaranteed, because despite the contingency Uber Eats did not achieve good results in eight countries where they made the decision to close their operations. On the purchase of Postmates Dara Khosrowshahi, CEO of Uber, said in a statement: “Uber and Postmates have long shared the belief that platforms like ours can drive much more than just food delivery can be a very important part of local commerce and communities, which is even more important during crises such as that caused by COVID-19 “.
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