hen early investors were pitched on Uber’s original plan for a car-service app in 2008, it wasn’t until the second-to-last slide that they heard delivery could be another moneymaker for the business. Ten years later, delivery is no longer an afterthought. According to projections from its CEO, Dara Khosrowshahi, Uber Eats is on track to deliver some $10 billion worth of food worldwide this year, up from an estimated $6 billion-plus last year.
Dara Khosrowshahi, Uber’s CEO, has left much of Eats to Jason Droege : “Honestly, I’m there to do the corporate grunt work,” he says.But despite the growth, Uber Eats is losing lots of money, and even Khosrowshahi doesn’t know when it will be profitable. Potential Uber investors will have to decide: Is food delivery a smart bet on future growth or a fool’s errand in a crowded market?
Its largest competitor, publicly traded Grubhub, has proved you can make a profit in this business. That success has made it a formidable rival, and it’s not the only one: Just in the U.S., Uber competes against Square subsidiary Caviar, well-capitalized startups DoorDash and Postmates, and the potential giant in the wings, Amazon.
But just as Uber Eats was getting traction, Uber’s executive team fell apart in the wake of reports of sexual harassment, gender discrimination and questionable business ethics. Ultimately, Kalanick was ousted, and other groups, like self-driving cars, lost their department heads. But Droege and his team of nearly 2,000 remained mostly unscathed. He admits it was a “tough year,” but he told his team to keep their heads down and execute.
Humm food!
Interesting. I personally use Postmates
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