If the Coronavirus pandemic has shown us anything it is that food delivery services are set for a boom time as isolation becomes the new normal. One of the major players in the provision of food to homes is UberEats, which is about to grow in size to become the second-largest deliverer of food behind DoorDash but ahead of GrubHub. The growth of the food sector of the ride-sharing company comes with the purchase of the PostMates service that has been delivering food throughout the Southwest since 2011. As ride-sharing has been hit by the widespread nature of the COVID-19 outbreak in major metropolitan centers around the world, Uber’s revenue in this area has fallen by around 53 percent.
The $2.65 billion purchase of the food service was announced by Uber on July 5th as the company looked for different ways of expanding its abilities to deliver food to its customers. PostMates may not have been the largest entrant in the sector, but it has always been seen as one of the most innovative members of the industry. Among the innovations from the company that holds a market share in Phoenix, Arizona and other parts of the Southwest. UberEats has become the dominant force for the ride-sharing giant and holds the largest market share in Los Angeles and Orange County.Read More »
In contrast, the new partner for Uber’s brand has been enjoying its role as one of the most popular and respected members of the industry due to its reputation as an impressive employer and innovator. Throughout its life from 2011 onwards, the food deliverer has been known for being the first company to offer the chance to order food and have it delivered to your door with the click of a smartphone screen using its mobile app.
The development of Uber Eats could not have come at a better time for the ride-sharing company as it has been struggling to maintain its position as the premier driver service. This has been hit by strikes by its drivers over the last few years and the removal of its license to operate in the U.K. capital of London. The new partner of the ride-sharing brand has not had any such difficulties throughout its life over the last decade or so. This has been largely due to its willingness to embrace the limitations and advantages of the so-called ‘gig workers’ it employs.
Even when incorporating the development of the Uber Eats brand, the company has lost almost $3 billion over the last quarter as its ride-sharing platform has seen a significant dip in usage as lockdowns have taken effect around the world. The Post Mates brand has been growing throughout the pandemic with most consumers turning their backs on traditional evenings out and dining options in favor of staying home and ordering takeout. The brand has been in talks about mergers with the other well-known companies within its sector and had been valued at around $2.4 billion before Uber’s decision to purchase the brand. More than $900 million had been raised in venture capital funding since the brand was launched in 2011 to much fanfare on the stock market.