Uber Eats Data and Financials Have been Unveiled in Uber's IPO Prospectus



For the last few months, the media has been reporting that the tech company Uber is on the verge of an IPO.

Well, it's officially happening this week. On Friday, Uber has released its S-1 financials document as part of the IPO process.

In this document, Uber had to disclose data on all of its companies, including its popular food delivery service platform Uber Eats.

Uber Eats is the largest growing sector in Uber's portfolio and according to the document, there are 91 million monthly active users of the platform.

"Of the 91 million [Monthly Active Platform Consumers] on our platform, over 15 million received a meal using Uber Eats in the quarter ended December 31, 2018, tapping into our network of more than 220,000 restaurants in over 500 cities globally," writes Uber Eats, as reported by "The Spoon."

Some of the other stats released by the company this week include-

  • The average Uber Eats delivery time is 30 minutes.

  • Uber Eats grew by $2.6 billion in gross during the quarter that ended in December of last year.

  • Uber Eats made $7.9 billion in gross in 2018

The company also claims that these findings make the third-party delivery app "the largest meal delivery platform in the world outside of China."

Although the company's popular ride-sharing app made it easy for the company to branch out into food delivery, 50 percent of first-time Uber Eats users in 2018 were new to the Uber app.

So what's next for Uber Eats? The company announced it has plans to expand into grocery delivery.

Read more about the Uber IPO and Uber Eats' financials at "The Spoon" now.

Late last month, Uber Eats rolled out a new fee structure, a move by the company to increase profits. Watch The Barron Report episode below where Host Paul Barron breaks down the new fees and the impact they will have on the restaurant industry.

The On-Demand Delivery Trends and the Technology Driving Them

The future of on-demand ordering could be summed up to one simple statement– It’s just beginning.

According to Foodable Labs, over 30% of the U.S. Restaurant industry is offering some kind of on-demand third-party ordering solution. Over 80% of consumers under the age of 35 are using on-demand food ordering apps about two times a week, proving the delivery segment has exploded thanks to the new age consumer and their dining habits.

The Big 6 are the lion's share of the market, but our research now shows over 100 on-demand food delivery companies serving the 1.2MM restaurant and food companies in the US.

The breakdown of Engagement and Sentiment tells an underlying story of these companies and how consumers view them and eventually, how restaurant operators may view them as well.

Engagement is scored by an analysis of how often consumers mention the use of the app or service on social along with an analysis of the Sentiment of the service based on food delivery speed, quality, accuracy.

The Engagement and Sentiment Scores of the Leading Third-Party Delivery Companies

According to this data, the Best Quality goes to the company Caviar. As the leader in the Sentiment area of Quality, this may be based on great service, but the company also recently acquired by Square. Remember Square is also a POS company and is tied to transaction-based business models. Recently Caviar added a spotlight that says "who's making your food" and has labels like women-owned restaurants. The overwhelming support by their users has given their consumer Sentiment score a boost.

Best Accuracy: Caviar came through as the leader in this area as well with a unique Sentiment score that showed this as one of the most appreciated aspects of its user base. Caviar's, along with other delivery apps', performance is being measured by the Chicago-based delivery search engine Food Boss, which is being led by the former McDonald's CEO Don Thompson.

Best Speed: Uber Eats takes this slot with what was one of the best Sentiment scores based on the overall app Sentiment. This has little to do with the ordering process and making a restaurant selection, which for most users ties into the overall speed of the order. As they continue to use their technology to analyze user behavior, Uber continues to have the upper hand when it comes to speed that other companies may not be able to pace.

I had a chance to explore one of the technology companies that has created a solution to centralize the on-demand challenge of being listed on multiple platforms mainly for discovery.

Ordermark has created a solution to centralize the in-store technology to create a more seamless integration into food operations which over time has become one of the most challenging aspects of the on-demand food ordering explosion.

Every restaurant operator understands discovery is the key to success and the solution in today’s world is not Facebook or Twitter, instead, it's being on as many on-demand platforms that you can handle. Alex Canter, CEO and founder of Ordermark and I discuss the growth aspects of the company and the delivery sector, as well as technology and operational challenges of the future of on-demand food ordering and where it might be heading.

Munchery Delivers Last Meal as Other Food Delivery Companies Continue to Thrive

A few years ago, we started to see more virtual restaurants pop up on the scene. These are restaurants without a traditional brick-and-mortar space, instead, they are delivery only.

One of the food delivery companies that was on the rise was Munchery, a San-Francisco startup founded in 2010 that delivered chef-crafted meals. At one time, the company raised $120 million and had a valuation of $300 million.

However, as of last Monday, Munchery shut down the business operations immediately and the company's 250 employees were fired with no severance.

"Munchery’s decision to cease operations on Monday came as a surprise to many employees. Some of them had been busy prepping meals ahead of the announcement," writes "Digital Commerce 360." "But the warning signs had been clear for a while: There had been calls from vendors demanding to be paid, one of the people said. A company forklift was repossessed. And the startup had half a year earlier shut down service in several cities."

Apparently, the company owes tens of thousands of dollars. Deleware, the state where the company is incorporated, said that Munchery owes $143,429.63 in overdue taxes.

In 2016, "Bloomberg" reported that the company was losing up to $5 million a month.

Read more about Munchery’s closure at “Digital Commerce 360” now.

But as one food delivery company shutters its operations, another announces a massive funding round.

Chowbus, a Chicago-based food-delivery app founded in 2015, has announced a $4 million seed round of funding.

The app offers Asian food delivery to users in Chicago, Boston Philadelphia, NYC, Lansing, ML, and Champagne, IL.

But instead of only delivering the meals directly to users, Chowbus also stops at a few different spots in the areas it delivers at scheduled times for users to pick-up. This shuttle service has a $1 delivery fee and traditional delivery is $5.99.

Speaking of virtual or ghost restaurants, on a recent episode of The Takeout, Delivery, and Catering Show, Hosts Erle Dardick and Valerie Killifer discuss these concepts and how savvy operators are using this model to their advantage. Listen to the episode below to learn more about these restaurants and how they operate.

UberEATS Plans to Serve 70 Percent of the U.S. Market by the End of the Year

UberEats delivery bike

The food delivery platform UberEATS is aiming to achieve its lofty goal of serving 70 percent of the U.S. population by the end of this year.

The service currently is offering food delivery for 50 percent of the U.S. population.

Although the parent company Uber had a competitive advantage over competitors in the food delivery space due to its popular sister ride-sharing app, 40 percent of UberEATS' business is made up of entirely new customers to Uber.

“Eats is growing just as fast if not faster,” said Ana Mahony, Head of U.S. Cities for UberEATS to "TechCrunch."

But how does the platform plan to expand so quickly?

Well, Uber is launching a new self sign-up service for operators. This is supposed to streamline the signing-up progress, making it easier for restaurants to become a UberEATS partner.

While Uber is seeing a lot of potential in the food delivery market, Mahony said the company is still very much focused on providing logistics for transportation and goods.

“Uber is really evolving into a platform brand where we are moving very many different types of goods and services and people from point A to point B,” said Mahony.

Earlier this week, the WSJ reported that UberEATS was hiring personnel to oversee the implementation of drone technology for food delivery in San Francisco. In a job posting, the company said it was looking into using drones for delivery by as early as 2021. However, the company was quick to remove the job listing that outlined some of UberEATS’ upcoming plans.

Nonetheless, it’s safe to say that UberEATS has several innovative projects in the works.

Read more about the tech giant’s plans to expand to more areas at “TechCrunch.”

But will the increasing price for restaurants detour operators from partnering with UberEATS?

Watch the video below to learn how some operators see the platform as a "necessary evil."

This Service Aims to Help Restaurants Better Manage Online Orders

This Service Aims to Help Restaurants Better Manage Online Orders

It seems like we live in a time-strapped society. And now, with advances in technology and the expectation to have that technology work for you to make life easier, there is high consumer demand for the ability to have what we want, when we want and how we want it. Restaurant operators are in the service business and with that comes the responsibility to adapt to demand. Resistance could potentially lead to becoming forgotten by those who pay your bills— customers.

Needless to say, operators now have to deal with orders coming from all sorts of places. For one, orders that come from guests on location (of course), via phone for pickup or delivery, via food delivery apps like UberEATS and/or an equivalent, and even via online through food ordering services, like GrubHub and the like. Plus, with the rise of restaurant openings and an increasing market competition, most restaurant operators have to learn to cater to all to not lose out on their market share and stay afloat or, better yet, profit.

What is a restaurant operator to do to keep track of everything?

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