How UberEats work? Have a deep insight into its Business Model
The On-demand business model is an ideal business model for people seeking easy, convenient, and hassle-free solutions for their day-to-day tasks. The On-demand platform understands the needs of people and provides better solutions with the help of technology. The basic on-demand business model which solves day-to-day problems is e-services, e-delivery, and taxi transportation. The technology has been evolving and these there are softwares available to do and handle the business online which is very convenient. From catering management software to food delivery service software these digital solutions are very helpful to people.
Uber is considered as one of the pioneers of the on-demand business model across the globe. Uber started as the on-demand taxi transportation and garnered a massive response from the people. Uber successfully captured the market with its effective service and initiation in the field of the On-demand marketplace.
What is UberEats? And How is It Established?
Uber was the largest ride-sharing company after launching its ride-hailing business in 2009. In 2014, they decided to take one step ahead in the on-demand business and started an on-demand food delivery service naming UberEats. At that time, Uber was a famous ride-sharing business model, and they added one more service. Uber launched the online food ordering business with the name UberFresh in 2014 and later changed the name to UberEats. UberEats’ business model headquarters in San Francisco, California. UberEats was the experimental trial run by Uber to broaden its on-demand market, and this trial turned into a multi-billion dollar business and survived in the market. UberEats currently serves in many countries across the globe with a presence in almost all the major countries.
How UberEats work?
UberEats is an online food ordering platform which works on the three primary aspects:
- Delivery Partners
- Restaurant Partners
The entire process revolves around the three aspects and completes the food ordering and delivery cycle. The process is quite simple; the restaurants are associated with the platform and list the menus. The end users can access the UberEats app and explore the menus and order the food of their tastes to get it delivered at their door-step. The restaurant will receive the notification of the order details. When the restaurant accepts the order, they will notify the delivery person about the order. The delivery valet will pick up the restaurant’s order and deliver it to the user’s destination. Thus, this is how the entire ubereats business model effectively provides an excellent and efficient service.
The End users can explore the restaurants that are listed in the UberEats app. The restaurants have different cuisines within themselves. Thus, this gives the users wide varieties and options to choose and explore different cuisines and restaurants in the city. The users can either do real-time order and get it delivered within 30 minutes or schedule the order as per their conveniences. These are the two methods which end users can order for their food.
UberEats delivery partners deliver food orders to the users’ destination. The delivery valet receives the order based on its location and proximity to the restaurant and the customers’ destination. The delivery partners of UberEats are also called UberEats Drivers. The drivers have flexible working hours and will get paid for the delivery fee. They can earn the pickup fee every time they pick up an order from a new restaurant and earn every time they deliver the food to the end-user. Thus, this is how the delivery partners work for the UberEats ensuring smooth and efficient delivery.
The restaurants associated with UberEats can have a virtual presence in front of the users. The restaurant can get orders from the users by accessing the UberEats app. The restaurant will pay a commission to the UberEats for every order they receive via the UberEats app. After the restaurant accepts the order, and the delivery valet will pick up the order and deliver it to the end-user.
Business & Revenue Model of UberEats
UberEats works on a triangle cycle; as we discussed earlier, the process revolves between the user, driver, and restaurant. The business structure is quite simple to understand and wholly run by coordinating the apps. Uber understands the on-demand business dynamics very well as they had a successful venture of taxi booking platforms already running popular worldwide. They successfully implemented their on-demand strategy into food delivery and developed an excellent business model named UberEats.
Uber and UberEats work on the same strategy. Both business models have the exact functioning of the business to run. Uber wanted to broaden their exposure to different business models, and that’s why they started UberEats on a trial basis, which in time became a multi-billion dollar business for them. UberEats receives commissions on orders from restaurants. They charge around 30% commission per order. Also, they sign special promotional contracts with food franchises like McDonald’s, PizzaHut, Dominos, etc. Thus, they generate revenues by coordinating various strategies, associations, and implementing them into reality.
UberEats cover 50% of the US population currently. They are also continually expanding their presence in other countries and holding their bit in the on-demand food delivery business. Now they have the largest revenue share among the top on-demand food delivery in the US. UberEats have a lot of scopes to grow further as they are the pioneer of on-demand business models.