An Uber Eats executive reveals the company's surprising strategy for moving beyond taxi rides

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Uber's taxi rides outside of urban cores are deeply unprofitable, but delivery could help the company's balance sheet turn green in time for an IPO.

An Uber driver takes delivery of bags of donuts destined for a customer via Uber Eats in Sydney, Australia.is aggressively targeting areas outside of urban cores, especially suburbs, as it expands.Ana Mahoney, head of US cities for Uber Eats, sat down for an interview with Business Insider to talk strategy.

Outside of New York City and other metro areas, that's often still the case, especially in the suburbs. That's the exact marketwants to corner with its food delivery business as the ride-hailing giant continues its quest for global domination. Uber Eats first launched more than three years ago, and has expanded to more than 350 markets served by 300,000 couriers. Not only is delivery one of the fastest-growing areas of Uber's business, it showcases the"power of the Uber platform," as executives are quick to point out. In other words, a vast global network of services powered by a phone app can mean just more than digital taxi hailing. The company hopes it can soon reach everything, and has a focus on groceries next.

"We're seeing a lot of demand out there from families and people who eat differently than people do in our urban cores," Mahoney said.It's not just diners who benefit, either. Uber can leverage its massive network of data to expand local restaurants reach. Many of those small eateries might not have even had delivery options before.

 

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