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Forgive my ignorance, but I thought I heard somewhere along the line that Uber actually makes money on Eats, am I mistaken? Also as a separate point, I worked
by shaneprrlt 7y ago
Forgive my ignorance, but I thought I heard somewhere along the line that Uber actually makes money on Eats, am I mistaken?
Also as a separate point, I worked for an on-demand food startup, and I remember our founders talking about a local entrepreneur they knew who rented a single commissary, was operating white labeled brands on the delivery platforms, and was highly profitable.
Almost makes me think the delivery platforms could have a Shopify-type effect for traditional restaurateurs and it will be interesting to see the business models that unfold as a result.
- jersey 7y ago" As of July [2017], UberEats was profitable in 27 of the 108 cities where it operated. Uber declined to reveal the service’s revenue." https://www.nytimes.com/2017/09/23/technology/ubereats-food-delivery.html?_r=2 https://www.nytimes.com/2017/09/23/technology/ubereats-food-...
- larnmar 7y agoWithout knowing the details of their business, it seems likely that Uber is happy to lose money to get a decent foothold in a market, and then slowly change priorities from growth to profitability. I noticed today that the people who used to hand out $20 off your first Uber Eats coupons in my town are now down to $15... presumably part of this process.
- pbreit 7y agoEats is very unprofitable. In Q3 Eats EBITDA was negative $315m while Rides was positive $630m.