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UberEats Is the Most Profitable Part of Uber

Food delivery is raking in big bucks for the ride-sharing company


Despite its rapid expansion and cultural ubiquity, Uber — the ride-hailing app plagued by corporate scandals and publicity nightmares — has yet to turn a profit. But there is one part of its business that’s raking in dough: food delivery. According to the New York Times, “As of July, UberEats was profitable in 27 of the 108 cities where it operated,” with use of the food delivery app outpacing Uber’s ride-sharing service in cities such as Tokyo and Seoul.”

Despite being a fairly late entrant into the delivery game — the standalone UberEats app launched in late 2015 — and facing stiff competition from the likes of Grubhub and Postmates, UberEats has been massively successful. Thanks to its existing presence in hundreds of cities across the globe, a gigantic network of 1.5 million drivers, and widespread brand recognition, UberEats is crushing it: As of the first quarter of 2017, it had more than 8 million active users in the U.S. alone.

It’s also growing incredibly fast: “The number of trips taken by UberEats drivers grew by more than 24 times between March 2016 and March 2017,” the Times reports. As demand for food delivery continues to ramp up — and restaurants adapt accordingly — UberEats’ future growth is seemingly only limited by its customers’ appetites. Of course, it will remain to be seen what kind of competition it will face from Amazon, which has steadily been growing its own food delivery business and stands to expand it further with its recent acquisition of Whole Foods.

One Surprise Standout for Uber: Food Delivery [New York Times]
UberEats Is Destroying Your Favorite Food Delivery Service [E]