KEY TAKEAWAYS:
If you think of Amazon as powering next-day-delivery, Uber Eats wants you to think of them as powering next-hour-delivery. Food delivery apps saw an influx of customers during the Covid-19 pandemic as restaurants shut down. To maintain their new consumer base—and keep growing—some popular apps are expanding beyond hot meals into delivering nonperishables, groceries, and alcohol. Here are three reasons food delivery apps like Uber Eats and DoorDash are broadening their horizons.
1. Apps are looking for new revenue streams.
Even though they are two of the market’s most successful food delivery apps, Uber Eats and DoorDash still aren’t making money. Margins on food delivery are slim. Alcohol and grocery orders bring in more revenue than food orders and apps hope to save money on delivery by bundling nonperishable goods with hot food orders. These apps are also joining with brands like Macy’s and Petco on deliveries, where customers order directly on those businesses’ websites and Uber Eats and DoorDash deliver them.
2. Non-restaurant orders have climbed.
Customers want to be able to order more than their dinner. DoorDash’s non-restaurant orders climbed 40% from the fourth quarter of 2020 and Uber said its non-restaurant business grew 70% during the same period. All that growth has contributed to a higher full-year estimate for the value of total orders for DoorDash, according to the company. Uber Eats has also recently joined with Philadelphia-based Gopuff, which operates its own warehouses, for quick delivery of anything from groceries to beauty supplies.
3. The technology is already in place.
These apps have the ability to scale quickly thanks to their existing infrastructure and resources.
“Other partners have said, ‘We’ll carry 2,000 of your items on our app,’ whereas DoorDash said, ‘We’ll carry everything on our app,’” said Stefanie Curley, Walgreens’s head of digital commerce. They are hungry to keep growing, especially in the grocery space, according to industry executives, to compete with apps like Instacart, which commands more than half of U.S. grocery delivery sales.
Read the original article by Preetika Rana and Jaewon Kang here.
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The Link LonkJune 02, 2021 at 04:10AM
https://www.wsj.com/articles/forget-one-day-delivery-uber-eats-and-doordash-are-aiming-for-one-hour-11622581805
Forget One-Day Delivery. Uber Eats and DoorDash are Aiming for One Hour. - The Wall Street Journal
https://news.google.com/search?q=forget&hl=en-US&gl=US&ceid=US:en
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