Daily Management Review

Uber to expand UberEats globally


09/27/2016


UberEats meal delivery service is planning to actively expand international presence. Uber posted job ads on its website and on Internet recruiting resources. The company is hiring various employees, from basic control to marketing managers, couriers and sellers in 24 countries in total, according to Reuters.



Dennis Yang
Dennis Yang
At the end of this week, Uber is launching UberEats service in the Dutch capital Amsterdam. On Thursday, UberEats is starting delivering food in Dubai (UAE) and Johannesburg (South Africa). This week, Uber is also planing to expand its presence in three cities in the Americas and Asia, according to the company’s statement.

In addition, the company reported its intention to launch the service in Brussels (Belgium), Stockholm (Sweden) and "several" unnamed cities before the end of the year.

In the long term, UberEats will be looking for an opportunity to expand its activities for another 16 cities in 12 European countries - from Moscow to Madrid and Manchester. Rather soon, the service will start to work in 11 cities in nine countries in Asia, including Hong Kong, Jakarta and Tokyo, as well as Cape Town.

Up to date, UberEats is present in 33 cities in six countries, of which 27 are located in the USA. Uber started first testing of the food delivery service two years ago in Los Angeles. A year ago, UberEats reached the international level having started to work in Paris.

Total investment in the service amounted to more than $ 10 billion, which is a new record of investment before IPO for the US high-tech sector. Neither the Google, nor Facebook could even come close to this mark before they came to the open market.

Most of the volume of funds was collected through sale of stocks and bonds to investors last year.

Meanwhile, the company's competitors are wakeful and restless. In early September, Amazon announced that London Amazon Prime subscribers will be able to order food from any of local restaurant. The service can compete with UberEats and Deliveroo.

Amazon Prime Now app users will not have to pay extra for delivery. Minimum order amount will be £ 15, to be delivered in an hour.

The service’s representatives reported that the application has no hidden charges. Moreover, if price of food on the menu drops within 24 hours, the company will reimburse the difference to the client.

Amazon has already prepared to compete with other companies. Subsequent decline in prices on websites of various delivery services are not scaring the company, said TechCrunch. Absence of extra charges for meals and existing pool of subscribers on Prime will enable Amazon to become a serious competitor for UberEats and Deliveroo, which has repeatedly lowered the cost of food, proposed in the application.

Amazon Prime costs 79 pounds. ITS users get a lot of advantages, in particular, their orders are shipped the next day, and they have access to legal video content.

source: reuters.com, techcrunch.com






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