UPDATED 23:37 EDT / SEPTEMBER 24 2017

EMERGING TECH

Food delivery a bright spot among Uber’s ongoing problems

Amid the seemingly never-ending stream of bad news from ride-hailing giant Uber Technologies Inc., there’s actually some good news for a change. A new report claims that UberEats, the companies food delivery service, is not only doing well but is actually producing noticeable profits.

The numbers come via a report from The New York Times, which claims the food delivery service, available in over 120 markets globally, is actually surpassing Uber’s main ride business in parts of Asia and is now profitable in 27 cities it operates. The service is also claimed to be growing rapidly, with food deliveries made by drivers growing more than 24 times between March 2016 and March this year.

“There’s a global trend towards delivery,” Jason Droege, vice president of UberEverything, told The Times. “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 didn’t provide details on the financials of the service, but publicly available information would suggest that the momentum is real. On the Google Play store, the UberEats app has been installed between 10 million and 50 million times, with reviews sitting at a positive 4.2 stars out of 5.

Apple doesn’t provide app download numbers, but application download tracking service App Annie noted that the UberEats app is ranked in first position in the food and drink category in the United States as of Sept. 17 and the 41st most popular app overall, suggesting large download numbers. Notably, that first position puts it ahead of apps from fast food companies such as McDonald’s Corp. and its more direct food delivery competitors including GrubHub Inc. at sixth position in the food and drink category, Postmates Inc. at seventh and DoorDash Inc. in ninth place.

The service does face difficulties going forward in one market, with news last week that Uber had lost its license to operate within London after the city’s transit authority ruled that it’s not a “fit and proper” car hiring service. UberEats uses a combination of regular Uber drivers along with a dedicated fleet of couriers for the service in London, meaning that though it will lose its ability to employ regular Uber drivers for the service, its dedicated food-delivery couriers will not be affected.

Photo: 155237687@N06/Flickr

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