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 launched in April 2016 and has generated $1.5 billion revenue in 2018.
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%.
…According to Morningstar, it is being anticipated that Uber will gain 25% of the global food delivery industry which is worth $191 billion.