NEW YORK – Uber views food, not people, as the future, Yahoo Finance reports. The ride-hailing service already partners with restaurants to deliver food via UberEats, which reached $6 billion this year, skyrocketing more than 200%. UberEats now delivers for Wawa, McDonald’s and Starbucks in select markets.
That success has spurred the company to turn its attention to groceries. “With Eats, we’re getting into the business of moving food around. I think that this product of delivering great quality food to you at home in 30 minutes or less is magical and is going to move into grocery in a way that’s fundamental and a lot more people are going to be eating at home … you can absolutely see grocery as being an adjacency,” said Dara Khosrowshahi, Uber CEO, during Vanity Fair’s New Establishment Summit 2018 this week.
Uber and Walmart ran a three-month test on grocery delivery earlier this year, with neither company commenting much on the pilot program. Uber faces a crowded market in grocery delivery, with Amazon Fresh, Instacart and Postmates Fresh already established.
“Eating is something you do three times a day. So these are habits that go very, very deep. And someone needs to be the orchestration layer for people moving around cities, and I think that can be us,” said Khosrowshahi. “It’s an enormous opportunity. The real challenge for us is where do we focus and where do we partner.”
He added that Uber might consider forging into grocery delivery alone. “Transportation is a $6 trillion business and we’re 1% of it,” Khosrowshahi said. He added that Uber has its eye on the freight business too.