Uber launches food delivery service in India
Uber Technologies Inc. has started its food delivery service UberEATS in Mumbai, the company said in a statement on Tuesday, four months after announcing the launch of the service in India in January.
The company has appointed Bhavik Rathod, earlier the general manager for south and west for Uber’s ride-hailing business, as the head of the food delivery vertical. Rathod will report to Allen Penn, the Asia-Pacific head of UberEATS.
“The introduction of UberEATS in India... is a major step in our global expansion and showcases our commitment to the region,” Rathod said in a statement. “The wide selection of meal choices delivered at Uber speed will open new economic opportunities for delivery partners, enable restaurants to connect with more consumers and make eating effortless.”
Apart from on-demand food delivery, UberEATS will also allow consumers to schedule a delivery up to a week in advance.
The company has also launched an analytics tool called Restaurant Manager for the eateries that provide the businesses with insights into service quality, customer satisfaction and sales among others.
According to industry experts, the average order value for food in the US is around $20, about four times more than the average ₹300 (about $4-5) in India. As a result, delivery firms in India, which charge clients a commission of 10-20% of the order value, end up losing money as each delivery costs more than ₹50.
Unlike most food delivery apps which either deliver for free or charge a fee for orders below a minimum threshold, Uber will charge a delivery fee of ₹15 irrespective of the order value. This essentially means that Uber will earn a commission from restaurants, as well as a delivery fee from consumers.
To begin with, Uber has partnered with about 200 restaurants in Mumbai and allows payment only through Paytm, the digital wallet it partnered with in 2014 for cab payments.