(New York Times)
As the originator of taxi app,Uber launched lunch delivery service in Los Angeles in 2014 and then UberEats expanded its service around the world.UberEats cooperates with many restaurants and finishes their delivery.The delivery of food is all done by Uber drivers and each delivery only takes few minutes.Just like taxi service,users can track orders by mobile phones.Drivers can choose whether provide delivery service or not and they will get 5 dollars for each delivery.
Though Uber is beset by scandals recently,UberEats still makes a great profits for the company. “As of July, UberEats was profitable in 27 of the 108 cities where it operated.”(New York Times).Despite it entered the market fairly late in comparison with its competitors,UberEats is still crushing the market.”As of the first quarter of 2017, it had more than 8 million active users in the U.S. alone and the number of trips taken by UberEats drivers grew by more than 24 times between March 2016 and March 2017.”(New York Times)Though facing the competition from Grubhub and Postmates and being Plagued by corporate scandals and publicity nightmare,UberEat still earned a place for itself in the market.Just as Jason Droege said,“There’s a global trend toward delivery,as people use mobile phones more and more for everything in their lives, we’re starting to see a secular change in how people eat.” Uber seized the market opportunity cleverly to earn profit.And UberEats also have several advantages over rivals.First of all,Uber has a network of more than two million drivers who can also deliver food.Secondly,Uber has spent the better part of a decade mapping cities and finding the most efficient routes,which may help the company improve delivery times.
(google)
Out of question,UberEats built a great business model before entering the market.A business model covers four main areas of business:customers ,offer,infrastructure and financial viability. UberEats targeted on young generation who use phone more and more requently.And it has taken the partnership approach to speed up the growth of UbetEats and offer service in over hundred countries.As to the infrastructure, thanks to its existing presence in hundreds of cities across the globe, a gigantic network of 1.5 million drivers, and widespread brand recognition.Uber has a solid economic basis as the originator of taxi app,so it has the financial viability to operate the UberEats.
Entering a new market is difficult for many companies,especially when the market has fierce competition.Making a correct business model before entering the market is very important.Analyzing the market,setting target customers,using own advantages and cooperating with others and so on are all important.
reference:
https://www.eater.com/2017/9/25/16360594/ubereats-profitable-uber
