Uber Eats is facing a price war — just like Uber

The company’s customers aren’t very loyal, so Uber is slashing prices.

…But like Uber’s ride service, its food delivery business still isn’t profitable. And Eats offers pretty much the same thing its numerous deep-pocketed competitors do: transporting restaurant food to customers in exchange for a fee. Making things even more challenging is that, similar to its ride-share customers, Eats users aren’t especially loyal.

…Inevitably, Eats and its competitors, which all have similar offerings, will have to stop swallowing their losses and start charging more. And when they do, success will depend on which company has the most customers and restaurant partners.

In the US, Uber Eats is growing fast, but it is neither the biggest nor the fastest-growing food-delivery service, according to Second Measure. With about 22 percent of gross sales, it trails Grubhub (32 percent) and DoorDash (29 percent) in US customer spending.

…DoorDash sales grew a whopping 216 percent in March of 2019 compared with a year earlier, while Uber Eats grew 58 percent according to Second Measure — so even Uber’s huge growth isn’t on pace with that of its bigger competitor. Grubhub, a profitable company, grew 4 percent in that time.


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