Uber Technologies Inc. on Sunday evening started rolling out two new courier services that will enable businesses to deliver online orders and consumers to send packages to one another via the company’s app.

Usage of Uber’s core ride-hailing offerings has plummeted in recent weeks as a result of the coronavirus pandemic. Moving into the package delivery market, where demand is surging amid the rise in online shopping, could help the company make up for some lost revenue.

Uber Direct, the first new service, will allow retailers and manufacturers to draw on the company’s network of drivers to ship merchandise to their customers. In New York City, Uber is teaming up with online pharmacy Cabinet Health Inc. to deliver over-the-counter medication. The ride-hailing giant is also working with Portugal’s national post service and an Australian pet products retailer as part of its initial pilot tests.

Beyond advancing Uber’s goals for the package delivery market, Direct is playing a part in its efforts to assist public health authorities fighting the pandemic. The company said that it has delivered medications to more than 25,000 people in South Africa over the past two weeks as part of a collaboration with local officials and The Bill and Melinda Gates Foundation. Previously, the company announced plans to offer 10 million rides to healthcare workers at no charge along with 300,000 free meals.

The second new service, Uber Connect, targets consumers rather than organizations. It allows users to send items such as board games and toilet paper to one another with same-day delivery. Uber is initially making Connect available to users of its app in about 25 cities across Australia, Mexico and the U.S., a number that the company could likely quickly expand should the service attract sufficient interest.

Uber Chief Executive Officer Dara Khosrowshahi has expressed optimism about the company’s ability to weather the pandemic. In a call with shareholders last month, he revealed that the ride-hailing giant had about $10 billion in unrestricted cash as of February. Khosrowshahi told investors that even if Uber’s core ride-hailing business were to take an 80% revenue hit this year, it would still close 2020 with about $4 billion in cash reserves. 

Photo: Uber