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Inside Uber's strategy to become the next on-demand delivery powerhouse

May 1, 2015, 02:31 IST
BI IntelligenceUber is hiring aggressively to support its expansion plans.

As part of a broader expansion strategy, Uber has reportedly been quietly testing a broader on-demand delivery program with merchants.
If leaked documents are genuine, the program amounts to Uber's attempt at going all-in on on-demand deliveries. Uber has launched delivery for certain categories in a few cities, but this new plan would likely roll all these into a single umbrella service that would encompass all kinds of retail categories. E-Commerce Insider, Business Insider's daily paid industry newsletter, analyzed the leaked documents, originally posted by TechCrunch, in the context of Uber's wider delivery strategy. Click here to sign up for a trial of Business Insider's subscriber-only industry newsletters >>
Here are the main takeaways from our newsletter's analysis:
  • Uber's plans place a lot of focus on goods that fall under the apparel and accessories category, according to the documents. Cohen's Fashion Optical, Hugo Boss, Neiman Marcus, Louis Vuitton, and Tiffany's are all cited as merchants that are currently testing Uber's new on-demand delivery service. In total, more than 400 merchants are either "in talks," or already testing Uber's forthcoming service, according to the report.
  • Uber also has been improving the GPS software in the app that its drivers use so that they can receive multiple assignments at once, the documents suggest. For example, a driver might receive an assignment to pick up a passenger, and then receive another assignment to pick up an item at a store near where the passenger is being dropped off.
  • Uber could eventually consolidate all of its delivery offerings under one umbrella service. The three delivery services that Uber has either rolled out or tested in the past year include: UberEats, a meal delivery service, which is now permanently available in Chicago, New York City, Los Angeles, and Barcelona; UberEssentials, a dry goods delivery service, which was tested in Washington D.C. last year but is no longer available; UberRush, a package courier service, which is available in New York and New Jersey.
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