140kg of jam
Years ago
Anyone had any experience with this service?
Also, I'm curious about the business model. I assume it uses the same network of drivers as the "normal" uber. But drivers would want to be getting paid the same as if they were transporting people, wouldn't they? Yet the delivery cost is only $5. So the restaurant foots the rest of the bill?
Isaac
Years ago
Uber subsidises their service to both establish their foothold and drive out competition. This is invariably funded by their investors to date.
So, when you pay $20 for a ride, there's every chance that Uber have paid more than that to a driver depending on demand at that point. They've often had guaranteed hourly rates regardless of customer demand.
AKA
Years ago
I've used Uber Eats and think it is great. I've also got Fedora and Deliveroo (I'm inner city Melbourne) and they are fantastic also. The last two mentioned are predominately cyclists with some using a scooter. They charge a flat $5 delivery fee along with there being a $25 minimum order.
I love the fact that as the consumer we aren't limited to the traditional take away options. I have a friend who owns a restaurant which utilises Uber eats and he said it has helped his business grow also. Win-Win!!
Say I'm an Uber driver. A trip from the cbd to an inner city suburb usually is a $20 trip. So instead of dropping off a person, I'm dropping off food. Uber only charges $5, so based on what I read above uber subsidises the other $15?
Seems like a large subsidy and what competition are they actually squeezing out? Yes for Uber normal I understand they're changing people away from taxis. But when it comes to food delivery a lot of these restaurants don't currently do it.
So let's say they get heaps of restaurants in board and a lot of orders. I still wonder who is going to close that funding gap
Isaac
Years ago
Uber lost over a billion AUD in the third quarter. The VCs invested in them are essentially subsidising the service.
If they can hold their ground and establish their brand, eventually they will be rid of drivers and fuel costs and be in a box seat. They are already trialling semi-driverless cars for rides in California.
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