Growth Strategy Of Uber Eats In Various Areas

By the end of the year seventy percent of the U.S population would be covered by Uber eats and this expansion would double in the years to come. According to Janelle Sallenave, head of Uber Eats, U.S. & Canada, much of the expansion comes in smaller cities and suburbs.

She further added that it meant that they were able to get into cities like Eugene, Oregon or Cedar Rapids, Iowa i.e., cities that one cannot historically think about for the [Uber] rideshare business.

This suburban expansion is equal for all delivery companies. Last month at Skift Restaurants Forum, Stan Chia, Grub hub’s COO (chief operating officer), explained his company’s push into newer markets. According to him a marketplace that encourages reinforcement, has been built. And this is a model for everyone. We want everybody to be a winner whether it is a guest, a restaurant or our delivery partners. Most smaller cities are looking forward to this.

Restaurant Partnerships Helps Growth

Delivery and partnerships are not a zero-sum game. The loss of one is not a gain for the other. Previously the story might have been different when big players in the market had reasonable coverage and each promoted not-so-much-talked-about restaurant chains that always help in a quick build-up of cache of restaurants available with the delivery companies.

Growth is fueled by chain partnerships because they both extend the geographic reach and offer an option that is predictable for consumers from the suburbs who react differently to deliveries as compared to people in other cities. Sallenave says that this boost is felt the most when a first-time visitor opens the app and sees a range of restaurants including brands. The eater or visitor is happy because brands maintain their standard and quality of food and so he continues with the order.

A Race For The Pace

The company is also aiming to pick their pace in both deliveries and business. The head of Uber Eats discussed at Skift Tech Forum that their company is now ready to roll out businesses in a short amount of time anywhere in the world if they have a product that will earn them good money.

To a pleasant surprise, their strategies seem to be well placed because, in September, the company witnessed a 10 times growth in orders as compared to September in 2016. Sallenave said that many restaurants are not engaging with the service either because of word of mouth marketing or because of having it onboard.

It Gets Better

Uber Eats has also rolled out a new feature that allows restaurants in the US and Canada to join Eats without any sales team and all on their own. The process is called self-serve and the company aims to use it for expansion purposes for the business.

According to Sallenave, the technology will allow restaurants to go online and follow an easy process that is self-explanatory. They will allow the willing customers (or as Uber Eats likes to call them; eaters) to get to their favorite food spots in a quicker fashion as more restaurants will be joining the network by signing the company’s delivery agreement online.

Silicon Valley has been using the self-serve model for years now but for the restaurant industry, its first-timer. Previously, onboarding teams and robust sales force were the main players to get things done for the restaurants. Square CEO Jack Dorsey unveiled that 60 % of the restaurants had self-onboarded on the platform. Square had selected a similar autonomous method allowing restaurants to go through the process by themselves.

Recently Uber Eats was reported by the Wall Street Journal to be having a worth of $20 billion. That is about 1/6 of the revenue of the entire company. According to Sallenave, no matter what the size of the market area was, delivery on time was their main ability to rely on in order to get their business booming. She added that they are trying to make the process smooth enough that the courier arrives exactly at the time when the food is ready to be delivered. This is a new approach in the food delivery industry and the company is hopeful to create some strong first experiences out of it.

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