So it’s live. The most awaited service from the ride hailing app Uber. UberEats is officially launched in Bengaluru, the silicon valley of India. UberEATS is the easy way to get the food you love delivered.

Uber launched its food delivery service in Bengaluru with a promotional offer of Rs. 1 for the delivery. The regular charge is Rs. 25. The service is already live in cities like Mumbai and Gurugram. With UberEats, Uber is directly competing with major food delivery services like Swiggy, Zomato, FoodPanda.

In Bengaluru, the service will start in three areas – Koramangala, BTM Layout and HSR Layout. UberEats has partnered with over 300 restaurants to start with. Paytm is the only payment option as of now. But it will soon add card payment methods as well.

Uber said the choice of localities to launch in was determined based on restaurant density. UberEats app uses machine learning to analyze the various data it collects. The Koramangala region, has one of the highest number of restaurants in India. Swiggy and Zomato now deliver to many locations across Bengaluru. Some insights from UberEats’s research showed that weekends (Friday-Sunday) have the highest number of food delivery orders and Wednesdays witness a mid-week spike. Indian, pizza and Chinese are top food delivery favourites in Bengaluru. Users in the city care most about on-time delivery, variety and ease of ordering that comes with personalization. Vartika Bansal has been appointed as general manager, for UberEATS, Bengaluru.

Uber estimates that the online food ordering business could be worth $15 billion in India, and awareness can grow the market. Uber said all of its ride customers were potential UberEats customers. Uber is promising a 35 minute delivery. The UberEats app has more than 5 million downloads and was launched in Santa Monica, California, three years ago. Unlike Uber rides, users can place orders on the website too.

UberEats will be a separate standalone application on your phone. Uber has not bundled it with the ride hailing app.

How to use UberEATS?

UberEATS

You can schedule your order as well. You can schedule up to six days and at any time. Uber will deliver the food at the scheduled time at your doorstep.

UberEATS

Download UberEats from Apple iOS Store and Google Playstore. You can use their website to order as well.

UberEATS will be available from 10:00 AM – 11:00 PM, seven days a week. UberEATS charges a flat ₹1/- delivery fee on behalf of the restaurant / courier, for each order without any minimum order value.

What’s in it for competitors, restaurants and customers?

Uber, as we know is known for their customer service. There are many instances where the users gave five-star to Uber ride and lesser star for Ola cab ride. If they can replicate the same level of service, quality and accuracy, then UberEats for sure will give a run for money to their competitors.

Zomato, Swiggy, Foodpanda are the current market leaders in food delivery space. Earlier, Ola started food delivery in Bengaluru. But later they closed it down citing less profitable. There are unverified reports that Amazon India might soon enter this space as well! Google also launched their delivery app Areo recently in Bengaluru and Mumbai. Earlier in May, Swiggy raised $80M in funding from Naspers to gain financial advantage over their competitors. Zomato recently said that they have served 3 million orders in the month of July.

As per reports, online food delivery market grew by 150% in 2016. For restaurants, the online delivery has extended their reach and additional business. Most of the restaurants are even renting out their kitchens during off-peak hours. For customers, they can get their favorite food delivered at door step. There are additional offers coupled with these deliveries which benefit the customers as well. Especially the young population in metros prefer home delivery. This young appetite is one of the key drivers for demand in the food and beverage industry.

Google and Uber have deep pockets and this will help them to offer better rates to their customers than local competitors like Zomato, Swiggy, Foodpanda. It will be interesting to see how these players take the food delivery to cities other than metros. Most of these services are platform aggregators where they serve as a bridge between restaurants and customers to support online orders.

It will be interesting to see who will sustain in the long run. Considering the financial strength, Uber and Google is ready to give their local competitors a tough time.

 

What is your take on online food delivery. Have you used any of these platforms. If so, which one is your favorite and why? Post your comments below and let us know your thoughts.

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