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Option 4: Uber uses the expertise, infrastructure, and brand it built in ridesharing to expand into the becoming the de facto standard for timely last mile deli

Option 4: Uber uses the expertise, infrastructure, and brand it built in ridesharing to expand into the becoming the de facto standard for timely last mile delivery. This is why UberEats is such a major strategic focus for the company. It's proof of concept that they can do more than be a taxi. An efficient platform for quickly and cheaply ferrying around stuff around town is a way bigger market than ridesharing. We're not only talking about the obvious examples like residential packages, groceries, and laundry. But entirely new business models that didn't previously exist, because there's no efficient last-mile delivery solution. Cloud kitchen are an example of a nascent industry that could only emerge in a post-Uber world.

idlewords 8y ago
Saying that we're going to work to dominate a low-margin sector at a staggering loss for years, so that we can enter an even lower-margin established industry and recoup our losses there, is a gutsy proposition.
- dcolkitt 8y ago
  Sure is. But remember, that playbook's almost exactly how Amazon became the largest company in the world.
  - quickben 8y ago
    AWS lock-in is different from a taxi app. Only a few players so far managed to respond to AWS in scale and offerings. Lots of taxi companies have their own apps at this point.
    - joncrane 8y ago
      The comment you're replying to means the original Amazon business model of selling things online. Pretty sure AWS was profitable almost from day 1.
  - xtian 8y ago
    You’re saying cloud services is lower margin than retail? I don’t think that has ever been true.
  - TheCoelacanth 8y ago
    Except that Amazon didn't have remotely close to the level of losses that Uber has. The year Amazon went public, they lost $30 million. Uber is losing a billion a quarter.
    - idlewords 8y ago
      Not only that, but there's no Uber analogue to Amazon Web Services, which makes the analogy specious.
  - acdha 8y ago
    Amazon was making real profits in each line of business shortly after entering - 1-2 years for books, music, etc. IIRC. They chose to reinvest that in further expansion but always had the option of halting expansion and being fully profitable if they wanted. Uber has nothing remotely like that and, unlike Amazon, their costs scale linearly and their workers (who are most of the business) have no reason to be loyal.
bduerst 8y ago
Expanding on this Option 4: They become an auction platform for last mile deliveries. - Demand comes from third party apps through API, or SMBs that are looking to make a same-day delivery. Higher delivery bids means network is more likely to fulfill sooner. - Uber fulfills supply with their own network of drivers but also allows other regional rideshare networks to plug in. - Reputation is keyed to driver's license, and better reputation means preferred bids and/or a better cut of the delivery fee, scaling at a ratio to cover the risk of bad/unknown drivers. - Self driving cars become a reality, and the network allows autonomous delivery swarms to plug in and fulfill supply.
- vinayakkulkarni 8y ago
  Become another locus.sh
hi5eyes 8y ago
option 4 is closer to the full scope of the company. uber has positioned to be more than simply a taxi company and a strong logistics competitor
bluGill 8y ago
Courier services have existed for years for last mile. I have a friend who was (20 years ago) paid full time by one law office to get papers to/from the court room (he worked for a company that dedicated him to that job). Part of his job was knowing the proper way to walk into a trial in progress. My dad more than once hired a taxi to take a package to the airport. I suspect post 9-11 this isn't legally allowed, but back then if you needed to get a bug fix to a customer your fastest option was put it on a tape, put the tape in a suitcase, buy a plane ticket for "Mr Package", and then check the suitcase in the name of Mr Package.
- duxup 8y ago
  >My dad more than once hired a taxi to take a package to the airport. I suspect post 9-11 this isn't legally allowed, but back then if you needed to get a bug fix to a customer your fastest option was put it on a tape, put the tape in a suitcase, buy a plane ticket for "Mr Package", and then check the suitcase in the name of Mr Package I worked for a company where we would hire a courier to fly with the package when needed. We sent a few tapes that way, but also some important equipment when it was critical to a customer. It was by far the fastest and best way to be sure a dude would be at the office door in X minutes, on the plane in Y, and at the customer site in Z with the needed thing(s). It was expensive, but they were really reliable and professional.
- hyperbovine 8y ago
  I don’t think the “Mr Package” option has been available for a very long time, well before 9/11. I vividly remember in the 1990s being delayed for an hour at the gate while they dug around the cargo hold in search of somebody’s checked bag who didn’t show up to board the flight.
seppin 8y ago
> for timely last mile delivery perhaps the only industry with worse margins than ride-hailing.
__jal 8y ago
> that could only emerge in a post-Uber world. Maybe, but a lot of restaurants despise Ubereats and want it to die, so they can't count on goodwill or loyalty there. (This is second-hand from a couple local restaurant owners; I am not one.) As I understand it, Uber is playing a sort of TicketMaster-ish game, demanding exclusivity (no having your own drivers, no using competitors) and funny terms about hosting your menu designed to make you dependent on them. I despise Uber, and when my local pizza shop was essentially forced to start using them, I started walking to pick up my greasepie. So I guess Uber is good for me, too.
- remote_phone 8y ago
  >As I understand it, Uber is playing a sort of TicketMaster-ish game, demanding exclusivity (no having your own drivers, no using competitors) and funny terms about hosting your menu designed to make you dependent on them. This is false.
  - __jal 8y ago
    I'm really curious about this. I've known one of the people I talked to a long time, and while I don't audit his business, I believe him when he says the contract says he can't hire his own drivers. What, exactly, is false?
    - deleted 8y ago
      [deleted]
    - mike00632 8y ago
      In my neighborhood I know of multiple restaurants that are on UberEats, Postmates and Amazon Restaurants. For example, Pick Up Stix has their own delivery service and they're on UberEats.

idlewords 8y ago

Saying that we're going to work to dominate a low-margin sector at a staggering loss for years, so that we can enter an even lower-margin established industry and recoup our losses there, is a gutsy proposition.

dcolkitt 8y ago
Sure is. But remember, that playbook's almost exactly how Amazon became the largest company in the world.
- quickben 8y ago
  AWS lock-in is different from a taxi app. Only a few players so far managed to respond to AWS in scale and offerings. Lots of taxi companies have their own apps at this point.
  - joncrane 8y ago
    The comment you're replying to means the original Amazon business model of selling things online. Pretty sure AWS was profitable almost from day 1.
- xtian 8y ago
  You’re saying cloud services is lower margin than retail? I don’t think that has ever been true.
- TheCoelacanth 8y ago
  Except that Amazon didn't have remotely close to the level of losses that Uber has. The year Amazon went public, they lost $30 million. Uber is losing a billion a quarter.
  - idlewords 8y ago
    Not only that, but there's no Uber analogue to Amazon Web Services, which makes the analogy specious.
- acdha 8y ago
  Amazon was making real profits in each line of business shortly after entering - 1-2 years for books, music, etc. IIRC. They chose to reinvest that in further expansion but always had the option of halting expansion and being fully profitable if they wanted. Uber has nothing remotely like that and, unlike Amazon, their costs scale linearly and their workers (who are most of the business) have no reason to be loyal.

bduerst 8y ago

Expanding on this Option 4: They become an auction platform for last mile deliveries. - Demand comes from third party apps through API, or SMBs that are looking to make a same-day delivery. Higher delivery bids means network is more likely to fulfill sooner. - Uber fulfills supply with their own network of drivers but also allows other regional rideshare networks to plug in. - Reputation is keyed to driver's license, and better reputation means preferred bids and/or a better cut of the delivery fee, scaling at a ratio to cover the risk of bad/unknown drivers. - Self driving cars become a reality, and the network allows autonomous delivery swarms to plug in and fulfill supply.

vinayakkulkarni 8y ago
Become another locus.sh

hi5eyes 8y ago

option 4 is closer to the full scope of the company. uber has positioned to be more than simply a taxi company and a strong logistics competitor

bluGill 8y ago

Courier services have existed for years for last mile. I have a friend who was (20 years ago) paid full time by one law office to get papers to/from the court room (he worked for a company that dedicated him to that job). Part of his job was knowing the proper way to walk into a trial in progress. My dad more than once hired a taxi to take a package to the airport. I suspect post 9-11 this isn't legally allowed, but back then if you needed to get a bug fix to a customer your fastest option was put it on a tape, put the tape in a suitcase, buy a plane ticket for "Mr Package", and then check the suitcase in the name of Mr Package.

duxup 8y ago
>My dad more than once hired a taxi to take a package to the airport. I suspect post 9-11 this isn't legally allowed, but back then if you needed to get a bug fix to a customer your fastest option was put it on a tape, put the tape in a suitcase, buy a plane ticket for "Mr Package", and then check the suitcase in the name of Mr Package I worked for a company where we would hire a courier to fly with the package when needed. We sent a few tapes that way, but also some important equipment when it was critical to a customer. It was by far the fastest and best way to be sure a dude would be at the office door in X minutes, on the plane in Y, and at the customer site in Z with the needed thing(s). It was expensive, but they were really reliable and professional.
hyperbovine 8y ago
I don’t think the “Mr Package” option has been available for a very long time, well before 9/11. I vividly remember in the 1990s being delayed for an hour at the gate while they dug around the cargo hold in search of somebody’s checked bag who didn’t show up to board the flight.

seppin 8y ago

> for timely last mile delivery perhaps the only industry with worse margins than ride-hailing.

__jal 8y ago

> that could only emerge in a post-Uber world. Maybe, but a lot of restaurants despise Ubereats and want it to die, so they can't count on goodwill or loyalty there. (This is second-hand from a couple local restaurant owners; I am not one.) As I understand it, Uber is playing a sort of TicketMaster-ish game, demanding exclusivity (no having your own drivers, no using competitors) and funny terms about hosting your menu designed to make you dependent on them. I despise Uber, and when my local pizza shop was essentially forced to start using them, I started walking to pick up my greasepie. So I guess Uber is good for me, too.

remote_phone 8y ago
>As I understand it, Uber is playing a sort of TicketMaster-ish game, demanding exclusivity (no having your own drivers, no using competitors) and funny terms about hosting your menu designed to make you dependent on them. This is false.
- __jal 8y ago
  I'm really curious about this. I've known one of the people I talked to a long time, and while I don't audit his business, I believe him when he says the contract says he can't hire his own drivers. What, exactly, is false?
  - deleted 8y ago
    [deleted]
  - mike00632 8y ago
    In my neighborhood I know of multiple restaurants that are on UberEats, Postmates and Amazon Restaurants. For example, Pick Up Stix has their own delivery service and they're on UberEats.