UberEATS- Uber tries to expand its business by launching the food delivery service in Japan
Uber is trying to enter into the new market in order to expand its business. It attempts to launch the food delivery service in almost 22 countries across the globe; it is starting its new service first in Japan. It is going to begin its service by hiring people for the various positions taxi dispatch in the food delivery services. For recruiting people, the company seeks help from the US tech heavy weight company.
With the intention to increase its business, the company attempts to deliver the foods, the food and the taxi industry differs much more, Uber is brave enough to take such an attempt. Uber will begin trading in the stock market just like the Dutch market leader, Takeaway.com.
There are few job listings on the Uber and also in the other recruiting sites. There are about 150 vacancies for the various posts such as, marketing manager, sales staff, delivery boys and many other related positions. Uber plans to expand its business in the new service, by launching its business in the 22 countries and it tries to implement the food delivery service, first in the 6 counties, where UberEATS will have a good start.
Uber’s executives were signaling that, the Casperon Dispatch Software Uber EATS project is a simple expansion of its core business that is the transporting people from one place to another. But the hiring process makes them feel that there is something big is going to come out of this project. And the company is more ambitious in this new project.
The executives are more confident that the UberEATS project will have great success in the world and it will become more popular in the cities where Uber have good responses.
Jambu Palaniappan who was recently appointed as the head of the UberEATS in Europe, Africa and the Middle East, this was officially said in an interview. He mentioned eight cities where they are going to develop their business; the cities include Dubai and Johannesburg where Uber plans to introduce the UberEATS by the end of this year. He didn’t tell about the future plans in these cities.
Europe is the birth place for many international players in the online food delivery business. They have wide range of the restaurants networks and a huge customer base. The biggest international giants in the field include Britain’s Just Eat, Takeaway.com and Germany’s Delivery Hero. They focus on the advertisements and provide services to the people, they give additional facilities to the local people and they leave the deliveries to the restaurants.
Uber will work more in these cities, because there will be a tough competition in these places. The small players include, Belgium’s Take, Eat Easy, it operates in 20 European cities and delivers the food to the people. The London based pronto, which cooks and delivers the meals to the people; it has been shut down for the recent years. Many funding organizations started giving funds to the Uber for its new project.
Investors started spending more amounts for this project. They poured about $10 billion for this project; they started collecting funds from 2014, the funding dropped in the early 2016 that is in the first six months of the year, this was reported from the research of CBInsights.
As per the survey, the global takeaway restaurant market is estimated to grow by 10 percent between 2015 and 2020, and it will be raised about $93.4 billion in the future. This prediction is made by the market research firm Euromonitor.
In addition to this, Amazon has added pressure to the existing food delivery players that it has launched the expansion of its international Amazon restaurants. And it is going to first enter the London market in this month earlier; it has an aim to develop this project in the 11 more cities in the United States.
The problem for the other small and the big remaining players is that, they cannot compete without the proper plan and strategies, said the head of the global research tech industry and the fund manager at the Northern Trust Capital markets, Mr. Neil Campling.
Till date, UberEATS has been launched in the 33 cities in the six countries, in which 27 of the cities are in the United States. It began testing of the food delivery in the United States two years ago.
Uber launched the project in London in this June, and it promised to deliver the ordered food within the 30 minutes after the order, it offers the free delivery for the first month and the company has promised that it will not collect huge amount for the delivery. You can order the food and it will travel over some places, you will get the food for the same price as in the shop.
The UberEATS head for the Europe, Africa and the Middle East, Mr. Palaniappan, said that, when they introduced in the city, first thing they tried to reduce the wait time of the customers. He led the Uber core business in the EMEA region, ho overlooks its move to India.
Many competitors have promised to deliver the food within an hour, and also they will cost a lowest delivery fee. UberEATS has the added advantage of the already existing Uber transportation facility.
Takeaway plans to increase 350 million pounds, for the initial offerings, that will increase the market value of 1 billion pounds for the company. There are some new entrants in the field, they are, Deliveroo of Britain and Foodora which is the unit of the Delivery Hero. These newcomers have their own drivers. But Uber and the Amazon have their own market because of their already existing services.
To strengthen their respective local and the regional positions, Just Eat and the Takeaway traded their properties few months before. London reports say that, Just Eat is trying to increase its revenue to 50 percent in this year and it has partnered with around 66,000 restaurants, this can ensure the company’s growth in the future years.
The CEO and the cofounder of the Delivery Hero, Mr. Niklas Oestberg said that, his firm was in the leading positions in the 28 countries across the globe. It has around 300,000 restaurants from the Asia to Europe to Latin America and it waiting to give the tough competition to China and Russia.
It does not try to dominate the Amazon and Uber, because they have a huge customer base and they are popular all over the world, they will have business in the smaller cities also, because they can reach the popularity soon.
The oscillating factor could prove how the restaurants like the pizza chain and many others are willing to allow the big digital players to come in between them and their customers. Amazon has faced this issue already with the brand name retailers, whereas, Uber has faced this problem with the taxi associations.
Alexander Frolov, who is the London based partner for the venture capital firm, Target Global, and he is also an investor for the Delivery Hero and other food delivery startups, says that, Uber is really a challenging competitor for all the local food delivery firms, because of its popularity. He also said that, it will be challenging for the Uber to take the place of the strong local food delivery firms.