Recently, the company’s stock has drastically dropped from $45 per share to $38 just after five days. And according to Fortune, lack of guarantee to profitability is the biggest cause.
Fortunately, Uber Eats, the company’s food delivery service, is coming to fuel Uber’s growth.
Uber Eats Acquires $1.5 Billion Revenue Last Year
Uber Eats launched in April 2016 and has generated $1.5 billion revenue in 2018.
The food delivery service initially started in Los Angeles, New York, and Chicago. Currently, as luck would have it, it serves food for more than 220,000 restaurants in over 500 cities globally.
Uber Eats Battles With Competitors
Though Uber Eats can possibly fuel the company’s growth, it also faces competitors such as DoorDash and GrubHub, both of which earns more revenue than Uber Eats.
While DoorDash gets the most revenue, Uber Eats still has a significant amount of share in the total transactions. According to Edison Trends, Uber Eats deliver meals to 15 million users in the last quarter alone.
In addition, Uber Eats is responsible for over 29% of the overall food delivery transactions, which is significantly higher than DoorDash’s 26%.
Uber Eats Is Facing Another Risk
Upset Uber drivers aren’t a risk that should be overlooked.
Drivers are beginning to protest over the decreasing amount of money they are earning in food delivery. And, unsurprisingly, driver’s dissatisfaction generally increase as Uber continuously decreases drivers’ incentives.
Uber Eats Is Expected To Own 25% Of The Global Food Delivery Industry
Uber Eats plans to expand its operations to be able to serve up to 700 cities.
According to Morningstar, it is being anticipated that Uber will gain 25% of the global food delivery industry which is worth $191 billion.
Uber Eats is in partnership with several largest food brands such as McDonalds, Subway, and Starbucks – all of which might have been a key factor to Uber Eats’ success.
Amid post IPO profitability issues, one thing is for sure, Uber has huge plans and nothing can stop them.