Disruption of on-demand economy can be majorly seen in three industries: transportation, food and logistics. Transportation is predicted to touch $100 billion mark by 2020. The digital logistics is forecasted to be worth $12.96 billion by 2020 while online food delivery has an opportunity to hit the $210 billion market. In every on-demand business vertical, leading companies claim to be the Uber of their niche. Establishing itself as the Taxi king, Uber has already conquered ride-hailing niche. With a vision to Uberize the world, Uber is not just focusing on transporting humans but online food ordering as well as logistics management.
Realizing food industry as the next big disruption in on demand economy, Uber made its entry into online food delivery with UberEats. UberEats was first launched in 2014 covering 10 cities and has now expanded to 58 cities. Online food delivery model is completely different from ride hailing model. Chetan Narain, Product Manager, in one of his interviews mentioned “As we learned, we realized our ambitions for what UberEats could become was far larger than this app that we’d built for transportation”.
Understanding the psyche of customers of F&B industry, UberEats went through a lot of transitions. Their designer researched how customers in various cities used an app for food ordering. As an observation, she found out that people want quicker turn around in lunchtime whereas they are ready to wait longer for dinner.
Looking at the prevalent issues of online food industry, Allen Narcisse, General manager of UberEats said, said “What we found is that even if someone is willing to pay $45, $50, $60 for that delivery, they generally find it unsatisfactory. Restaurants are also unsatisfied with the fact that we’re taking a product that they put a lot of love into and delivering it in a way that’s just not satisfactory.”
Thus, Uber decided not to deliver food outside a certain proximity.
Evidently, Uber had been observing and learning to make UberEats what it is today.
Considering its late entry into online food delivery as an advantage, UberEats did it the right way
-Restricting restaurants to show up in a delivery radius in which it is feasible to deliver orders without compromising the quality.
-Focusing on pricing transparency more than round the clock availability of food.
-Rating food with simpler thumbs up or thumbs down because 3 star pizza or 4 star pizza does not make much sense.
With introduction of on demand deliveries provided by UberRush, it became Uber for everything.
Are you planning to diversify your on demand business? Learn the Uber way of doing it.