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Uber Eats Eyeing Young Professionals in Smaller Towns to Increase Footprint in Hyper-Competitive Indian Market

Uber Eats is currently available in 38 cities

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Uber eats, Food, Allergy-friendly, Order
You can also filter and find restaurants that are allergy friendly. Flickr

As the online food delivery market in India goes hyper-competitive, Uber Eats, which is yet to create a significant mark on the Indian palette, is now eyeing young professionals in metros and joint families in smaller towns to increase its footprint.

Amid reports that Swiggy is buying its India business and then stalled talks, Uber Eats that came to India in May 2017 is finally witnessing fast adoption of its services among millennials and joint families.

“We’re actually seeing a trend of multiple combinations of orders at once in India, which is not limited to just Friday nights or festivals but on a regular basis,” Raj Beri, Head of Uber Eats-Asia Pacific, told IANS.

Earlier this year, reports said the elderly population was behind the success of Uber Eats’ business in Japan. Beri said the platform’s growth in India is beyond age demographics and more towards collective adoption of digital food delivery services.

uber eats
The company is introducing several India-first features on its app like the veg-only recommendations and cash payments. Wikimedia Commons

Countries in the Asia-Pacific (APAC) region order more from Uber Eats than any other geography in the world, with 1.5 million unique cuisine choices available on the platform in the region.

While Beri refused to reveal the company’s market and revenue share in India, he stressed that the company’s share in the APAC region is significantly growing.

Uber Eats’ business grew by 50 per cent (month-on-month) in its first year of operations in India. According to Jason Droege, Global Head of Uber Eats, India was their fastest growing market in the world.

Uber Eats is currently available in 38 cities. Launched much later than its competitors like Swiggy, Zomato and Foodpanda, Uber Eats is facing some problems in properly establishing itself as a food delivery platform among foodies in the country. The company is introducing several India-first features on its app like the veg-only recommendations and cash payments.

uber eats
Delivery men working with the food delivery apps Uber Eats and Swiggy wait to pick up an order outside a restaurant in Mumbai, India, Feb. 6, 2019. VOA

“Content, storytelling and just being transparent with the background behind where your food is coming from is very important. It would enable communication between restaurateurs and customers,” said Nikki Neuburger, Global Head of Marketing, Uber Eats.

According to Uber Eats’ Senior Director and Product Manager Stephan Chau, the company is using advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) to safeguard its customers’ data.

ALSO READ: Zomato to Launch a Service where People can Order Home-Cooked Food

“We don’t have reasons to really want to expose our users’ data outside of context. Our goal is to make sure that the users understand our steps and benefit from the transparency,” Chau said.

When asked if they were planning on implementing Virtual Reality (VR) and Augmented Reality (AR) in its app to enrich customers’ experiences, top executives said they might work on the idea in the future. (IANS)

Next Story

Zomato in Advanced Talks with Uber to Buy Uber Eats

The merger talks between the two food delivery platforms have revived as the competition is set to grow with Amazon's reported expansion into online food delivery business in the country

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Zomato NRAI
Zomato in a smartphone device. Pixabay

The online food delivery industry in India is set for a big churn as Uber has reportedly entered advanced stages of talks to sell UberEat’s India business to rival Zomato by the end of this year.

According to a TechCrunch report on Monday citing sources, the deal “currently values UberEats’ India business at around $400 million”.

As part of the deal, “Uber may invest between $150 to $200 million in Zomato”, the report claimed, citing sources.

As an event in Delhi earlier this month, Zomato Founder and CEO Deepinder Goyal said the company is aiming to raise up to $600 million in a new funding round.

When contacted, Zomato said it “does not comment on rumours or speculations”.

Despite arriving in the Indian market in 2017, UberEats has not made enough inroads in the online food delivery segment.

Zomato is currently delivering 1.3 million orders a day from 150,000 restaurants across India at more than 10 orders per restaurant per day.

Swiggy has expanded its services to 500 cities in India, matching rival Zomato’s reach in the country. Swiggy, which has added 60,000 new restaurants in the past six months, said in October it would expand to 600 cities by December 2019.

uber eats
Delivery men working with the food delivery apps Uber Eats and Swiggy wait to pick up an order outside a restaurant in Mumbai, India, Feb. 6, 2019. VOA

Since April 2019, Swiggy has increased the number of restaurant partners by almost 1.8 times to 1.4 lakh restaurants currently. In tier-3 and tier-4 cities specifically, Swiggy has onboarded over 15,000 restaurants in the last six months.

The market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.

UberEats last week launched its operations in Cuttack, its second city in Orissa, saying it Awill partner with a number of local restaurants such as Mirchi, Biryani Box, DFC Dada’s Biryani, Burger Adda Factory.

In a recent interaction, UberEats told IANS that it is not only going to stay put in the growing food tech industry in India but is also building strong linkages with restaurant partners for a seamless delivery experience for its customers.

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“Right now, we are more focused on delivery with the restaurant partners. We are learning in the India market and making our mark in that space before we can add anything more to it,” said Bansi Kotecha who is Head of Operations, Uber Eats.

The deal is reportedly in the works as merger reports of Bengaluru-based Swiggy and Gurugram-based Zomato — two biggest players in the burgeoning online food delivery market – have also resurfaced.

The merger talks between the two food delivery platforms have revived as the competition is set to grow with Amazon’s reported expansion into online food delivery business in the country. (IANS)