UberEats has experienced tremendous growth since first launching as a food delivery platform in 2014. Starting in just a few cities, UberEats has expanded globally to become one of the top food delivery services worldwide. This rapid scaling would not have been possible without UberEats leveraging innovative delivery strategies. This article will explore the 11 key delivery options that UberEats utilized to significantly grow its business revenue.

1. Partnering with Existing Restaurants

One of UberEats’ earliest strategies was directly partnering with existing, independent restaurants that did not offer their own delivery previously. This allowed many local restaurants access to a new revenue stream and customer base through UberEats’ platform. Partnering with restaurants also expanded UberEats’ catalog of available food options in each city. Initially, UberEats sales representatives would cold call and visit restaurants to onboard them to the platform. This low-barrier strategy of leveraging existing infrastructure helped UberEats quickly scale up the number of restaurants and menu items available on its platform in the early years. Partnering with local favorites also helped UberEats gain popularity and trust within communities as a delivery option for supporting hometown restaurants.

2. Expanding into New Geographic Markets

UberEats launched with a handful of cities in 2014 but growth followed an aggressive expansion strategy into new domestic and international markets. Within the first two years, UberEats expanded to over 100 cities across North America, South America, Europe, and Asia. Part of this rapid geographical scaling included acquiring competitors, such as acquiring delivery company Otto in Toronto which helped launch UberEats in Canada. Entering new metropolitan areas allowed UberEats to tap into massive new customer populations and sign on even more restaurant partners seeking delivery opportunities. The volume and velocity of UberEats city launches helped cement it as a leader in the delivery sector on a global scale compared to smaller, regional competitors.

3. Grocery Delivery

In 2018, UberEats announced a major expansion of their service to include grocery delivery in partnerships with supermarkets and grocery stores. This partnership allowed customers to order groceries through the UberEats app from retail partners like Costco and Albertsons in select cities. Grocery orders were then picked, packed and delivered by UberEats drivers to homes and offices. Grocery delivery provided UberEats access to an even larger total available market beyond just restaurants and takeout. Partnerships with nationwide grocery chains also accelerated the rollout of the new UberEats Marketplace feature to additional regions. Grocery delivery proved popular among time-strapped urban professionals and families ordering household essentials. Checkout Zipprr UberEats Clone App Script.

4. Alcohol Delivery

Capitalizing on their success with grocery delivery, UberEats rolled out alcohol delivery in select markets through partnerships with local beer, wine and liquor retailers. This allowed customers to order beer, wine and spirits for delivery directly through the UberEats app. As with grocery partnerships, UberEats integrated inventory and fulfillment with retail alcohol partners. Alcohol delivery opened up a new product vertical for UberEats while creating convenience for customers. It also highlighted UberEats aiming to become a one-stop-shop platform for various consumable categories beyond just restaurants. However, regulatory issues around age verification slowed the nationwide expansion of UberEats’ alcohol delivery compared to grocery.

5. Prepared Meal Kits Delivery

Partnering with popular prepared meal kit companies allowed UberEats to expand beyond restaurant hot meals with delivery of ready-to-cook meal kits. Initially testing with companies like Blue Apron and HelloFresh, customers could order weekly meal kits through UberEats for delivery. The convenience of pre-portioned ingredients and recipes allowed UberEats to tap into the growing meal kit market. Delivery of meal kits further diversified UberEats’ product offerings beyond the constraints of prepared restaurant menus only. Partnerships with subscription-based meal kit providers also granted UberEats reliable repeat customers from their subscription business model.

6. Delivery-Only Restaurants (“Ghost Kitchens”)

UberEats ventured into the development of their own delivery-only restaurant concepts dubbed “ghost kitchens” which operate exclusively for delivery with no physical storefront. Partnering with experienced restaurant groups, UberEats helped establish and operates delivery-centric brands across their platform. By handling all the marketing, delivery logistics and front-of-house operations themselves, UberEats gains more control over the brands and customer experience. This also allows them to directly profit from the sales of their own proprietary restaurant brands on the marketplace. Ghost kitchens proved beneficial for reaching new customers who may not have otherwise discovered the brands, as well as testing promising cuisine concepts more cost effectively.

7. Subscription Delivery Plans

Leveraging their expertise in repeat delivery, UberEats introduced innovative monthly subscription plans that offered waived or discounted delivery fees for a flat monthly rate. By catering to frequent delivery customers, subscriptions created more locked-in and predictable revenue streams versus one-off orders. According to UberEats, subscriptions encourage increased order frequency by making customers more price-sensitive to ordering from the platform. The subscription model was a hit among dedicated UberEats customers and allowed the company to better monetize their highest-value, most loyal users over time through subscriptions versus relying solely on per-order commissions and fees.

8. Drive Delivery Service

Unlike typical UberEats drivers who deliver only for restaurants partnered through UberEats’ platform, the Drive service enlists part-time drivers who can fulfill deliveries from any restaurant using the UberEats driver app. This allowed UberEats to partner with even non-integrated local restaurants and tookovers that did not offer their own delivery historically. Drive drivers are W-2 employees of UberEats who operate more like in-house couriers versus independent contractors. The service helped UberEats continue growing their delivery reach and restaurant selection beyond direct partnerships alone while still maintaining quality of service standards.

9. Scheduled Delivery Windows

In addition to on-demand, same-day delivery, UberEats rolled out the option for customers to schedule orders for a specific future delivery window. This allowed customers to pre-plan meals ahead of time for weeknights or weekends. Scheduled delivery opens UberEats up to different customer usage patterns versus constantly monitoring the app for available drivers and delivery times. Pre-orders also helped restaurants with demand forecasting to better prepare large number of meals during scheduled rush windows. According to UberEats, scheduled orders show higher average ticket sizes as customers bundle items for the whole week or weekend together. This demonstrates the value of flexible delivery models for different customer lifestyles.

10. Delivery by Bicycle or Scooter

Experimenting with more environmentally friendly delivery models, UberEats tested using electric bicycles and scooters for short-distance orders in select dense urban markets. Partnering with leading e-mobility providers allowed UberEats to deploy fleets of delivery-optimized electric bikes and scooters. Using micro-vehicles allows UberEats to cost-effectively reach customers within a 1-2 mile radius of restaurants during peak local deliveries. Compared to gas-powered vehicles, the electric models also better suit narrow bike lanes and reduce emissions—fitting UberEats’ increasing sustainability priorities. While still pilots, micro-vehicle delivery shows promise as an efficient last-mile solution fulfilling the growing demand for fast, local restaurant orders.

11. Autonomous Vehicle Delivery

Looking even further to the future, UberEats has plans to leverage self-driving vehicle technology for autonomous deliveries as the capability becomes available. Partnering with leaders in autonomous vehicles like Cruise, UberEats envisions a future where customers can receive contactless, driverless deliveries. Autonomous vehicles could efficiency fulfill deliveries, especially during high-traffic hours, while reducing costs long-term versus human-driven vehicles or drivers. While the timeline remains uncertain, autonomous delivery represents UberEats’ innovative vision to deploy cutting-edge logistics solutions ensuring their delivery infrastructure continuously evolves alongside emerging technologies for seamless, low-cost service.

Conclusion

Through embracing a variety of flexible, innovative delivery models, UberEats was able to rapidly scale its business and penetration globally. Starting initially with bootstrapped restaurant partnerships, UberEats branched out into new categories, geographies, mobility options, subscription plans and delivery innovations. This diversification allowed UberEats to reach massive new audiences, pursue unique revenue streams, better suit varying customer lifestyles, complement merchant partners’ needs, and cement their leadership in the delivery sector. By continuously iterating and testing the delivery experience, UberEats demonstrated the value of an agile approach tailored for the evolving digital economy and on-demand landscape. This versatility in delivery strategies has undoubtedly played a key role in propelling UberEats’ exponential worldwide growth since its founding in 2014.