Dti 2

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 3

The majority of us are likely pretty familiar with the food delivery service UberEATS.

People
trust the well-known brand UberEATS. It brings about $4.8 billion annually. It is a platform for
food delivery that was introduced by Uber Technologies Inc. in the USA in 2014. Through its
website or mobile apps, which are accessible for both Android and iOS, the platform enables
clients to order foods and groceries and have them delivered to a specified address.
UberEATS aims to make eating well accessible to all people worldwide. Users of their service
may place uber-speedy meal orders from eateries in more than 80 places around the globe.
They increase the range of dining options offered to customers. They encourage the growth of
patronage and revenue sources for restaurants. Whether they own a car or not, they give
delivery partners an additional way to make a solid living. Of course, they include everything
into the smooth, distinctive uber experience that customers have grown accustomed to.
The business strategy for Uber Eats blends on-demand, aggregator, and multisided platform
business strategies. It involves three parties, as previously mentioned: end customers,
delivery partners, and restaurant partners. Local users browse the app's restaurant menus,
make orders, and an Uber driver/rider picks up the food from the restaurant and delivers it to
the customer. There are four distinct revenue sources for Uber Eats:
 Commission on orders: Given that Uber Eats typically receives a 30% commission
from its restaurant partners on the total cost of every order placed through its
platform, this is likely the company's main source of income.
 Delivery fees: There are three components to the delivery partners fee: the pickup
fee, the delivery fee, and the distance fee (per mile). The total of these fees will vary
depending on the destinations, distances, and driver availability. And 25% of the total
will be taken by Uber Eats. In addition, Uber Eats will levy a $2 fee for orders under
$12, which they refer to as a small order fee.

 Promotions: To increase sales, several businesses and food chains, like McDonald's,
enter into specific agreements to provide unique promotions on the app. Therefore, in
accordance with the terms of the agreement, these brands will pay special
commissions and fees.

 Surge pricing: During peak hours, Uber Eats uses the same dynamic pricing
mechanism as Uber. This busy cost is determined by the amount of demand, the
quantity of orders placed in the same location at the same time, and the accessibility
of delivery partners.

There are different value propositions for each customer segment of Uber Eats:

 Restaurants: By providing delivery, restaurants can increase their clientele (and


order numbers). Uber Eats is a fantastic tool for restaurants to use for marketing and
advertising because they can use it without having to invest in a delivery team or
infrastructure.
 End customers: A variety of restaurants are easily accessible with just a click,
offering updated menus and prices as well as details on the anticipated timing and the
ability to follow an order. Additionally, there is less potential of error because the
consumer places the order themself as opposed to speaking with a server over the
phone who would take notes concurrently. Additionally, there are additional payment
methods available, so the customer can pay without having cash on hand and even
through an app.

 Delivery personnel: Like Uber, Uber Eats provides a means of revenue growth, and
the couriers may pick where and when they will work without having to negotiate
complex employment agreements with businesses. Additionally, depending on the
region, the delivery guys can commute by car, motorcycle, or even bicycle, creating
opportunity for many people to get their first job.

The B2B between Uber Eats and restaurants, the B2C between Uber Eats and end
users, and the one between Uber Eats and its delivery personnel all form the basis of
the Uber Eats business model canvas.
 The prices of the items listed by the restaurants on the app can change from those in
their physical locations, and they pay a fee to Uber Eats on each order.
 The people who can register for an account on the Uber Eats platform and place
orders from a wide range of nearby restaurants simply by having a device connected
to the internet are the end users.
 The delivery men are freelancers that pick-up orders from restaurants and bring them
to the final clients. They are informed of the deliveries that are available based on
their location and are compensated for each service.
They are creating changes to the way people find food. The work is exciting. Humans have
been preparing and selling food for thousands of years, yet cell phones have barely been
around for a decade. On uber eats, they get to combine cutting-edge technology with the most
fundamental but time-honoured behaviour of enjoying food.
Their customers include those looking for a quick bite on a regular basis, delivery companies
looking for flexible ways to generate money, and staff members working in restaurants who
want to expand and improve their businesses. The service connects these many types of
people through digital and real encounters. In addition to arranging the information on each
screen, the team's designers also have a role in how things go in the real world. In order to
understand all of their many markets and how their products fit into the physical environment
of each city, they regularly immerse themselves in the regions where their clientele live,
work, and eat. While seated at their offices in San Francisco or New York, they are unable to
truly comprehend what someone goes through while roaming the streets of Bangkok or
London. They must go there, see the city, sample the local cuisine, and observe how people
use the things they have made.
All of their immersion projects are built on the walkabout programme. Every three months,
designers visit an uber eats city to thoroughly research the regional market. They learn about
the regional food. They conduct study on the logistics and transportation systems. Customers,
restaurant personnel, and delivery partners are all interviewed by them. They keep eating all
the time. When they return, they discuss their observations with the entire team. Every visit
advances the development of a complete understanding of their distinct markets and
customers.
They can observe the execution of their designs using order shadowing. They go on
deliveries with partners, go to crowded restaurants, and wait in people's homes while taking
dinner orders. When they see their products in action, they gain a better understanding of the
needs of their consumers, how well their designs address those needs, and what challenges
exist in the real world that they are unable to imitate in the office.
Their products are innovative and complex, requiring exact coordination of real-world people
and objects. They test designs as soon as they can in the actual world because it is impossible
to replicate these conditions in their offices. They observe and iterate as soon as they notice
opportunities to improve the design. Speed is crucial. Its company needs to quickly reach
critical mass in order to be able to provide value to all of their varied clientele. In order for
delivery services and restaurant owners to turn a profit, customers must place enough orders.
Customers need a variety of restaurants to choose from in order to receive their food quickly.
They may swiftly test designs in real-world settings to see how users respond. Their
researchers and designers test their products in homes, restaurants, and delivery vehicles, as
well as the environments in which they will be employed. It is necessary to leave the
workplace in order to design solutions for practical problems like parking, delivering to large
apartment buildings, or speeding up kitchen operations during dinner rush.
The operations team tests concepts and designs in a single city to quickly evaluate their
opportunity. Local staff in every market interact with customers directly, generate novel
ideas, and aren't hesitant to scrounge up a quick trial to show the idea's practicality. The
operations team in Toronto initially tested out elements like the "most popular items"
category in their uber eats menus before later iterations were made accessible to all users in
all locations.
They always experiment. Even though their app has only been available for a little over a
year, it has already begun to transform the way that food is delivered to customers. Although
the process is the same as it has been for years, technology makes everything simpler for
everyone. Restaurants give the same menu options for delivery as they do for eating in,
customers purchase meals as needed, and delivery services bring orders one at a time.
Meetings, presentations, field visits, and workshops on innovation are a few of the steps.

You might also like