American Multi National transportation giant Uber Technologies has said that it will be launched its food delivery service UberEATS in India soon. This statement was made by it in a blog post it posted on Monday. The announcement has come at a time when most food delivery startups have struggled and folded due to their inability to build a feasible scalable business model. Currently Zomato, Food Panda, Swiggy and Runnr are the three main players in the segment that has seen many consolidations.
Food Panda is reportedly on the selling block, while Tiny Owl was acquired by Road Runnr, that was renamed as Runnr. Many companies have raised multi-million dollar funding to the tune of hundreds of millions of Dollars, but have been unable to demonstrate how they can turn this profitable. Allen Penn, the Asia Pacific Head of Uber said that he was very happy to launch UberEats in India. This is a significant opportunity and an investmetn for them as it spreads across many cities and regions and has the ability to change the food industry with the touch of a button.
Uber Eats is a separate mobile app that was started in the year 2014 in Los Angeles and has now been started in over 58 cities all over the World. The cities include Paris, New York, Bangkok, Tokyo, Singapore, Hong Kong, Seattle and now major cities in India. The app works on two models. In some cities, the entire menu of the restaurant is available, but in some, there is just a small delivery menu of restaurants that is available.
The launch date of the app has not yet been specified. Many apps like Spoonjoy, Eatlo, Dazo have shut down due to their inability to compete in this market. Even the major companies like Runnr, Zomato and Swiggy, which have raised a few hundred million in funding have not made a profit in this segment. They are not just making losses, they are bleeding money. Uber is said to be valued at about $68 billion and has so far raised $11.4 billon in debt.