Uber eats was launched by Uber in the year of 2014 in the US for online food ordering and delivering across the country. It has become a major platform that allows the customers to order food while sitting at the comfort of their homes. The customers can stay at their homes and surf the menus and thereafter order the food with the help of iOS and Android platforms. In this particular report, we will focus specifically on how does Uber Eats work, thereby shedding some light on its business and operations model.
Operations of Uber
Uber eats has made ordering food easier and simpler for the people who are busy and avoid waiting in long queues for getting their food delivered at home. Moreover, the sudden emergence of the pandemic has also made people anxious about going out of their houses to procure different kinds of food items. This has also opened new opportunities for Uber Eats to build a strong customer base with the new system of online food ordering and delivery. It has also helped to face against the Uber competitor in the market. In order to understand how does Uber Eats work, we need to delve deeper into its operational `
Uber Eats has collaborated with a large number of restaurants. It allows the customers to choose from numerous eat outs that are available from its smartphone application. The customers will have to get an overview of different restaurants and select the most viable one from where orders are to be made. Thereafter the menus will have to be checked and evaluated by the customers before making the final decision. After the right choice is made there is a need to add the concerned items into the cart of the Uber eats application. After the entire process, it is necessary to proceed with the checkout. The payment options will be available to the customers in the application.
Once the payment is made in time the tracking option will be opened which will help in getting a better idea about the period within which the food items will be delivered. The tracking will have to be checked appropriately for the estimation of the delivery of the food items. The application will also reveal if the order has been accepted by the restaurant from where it had been ordered. After the acceptance, it will be easier to understand the time within which the food will be delivered. Uber Eats make money.
The entire operation of Uber Eats is based on their unified system which connects the restaurants, the customers and the delivery agents. This seamless integration of the parties determines how Uber Eats working in its various international markets.
Assistance of Delivery Agents
The delivery agent will be responsible for ensuring that the food is delivered at the right time to the right person. The person may come over via scooter or car and thereafter dispatch the products. The entire process will be conducted only when the restaurants have accepted the orders placed. It means that the process is simple and easy to be undertaken. The entire process is flexible enough to suit the requirements of the customers at large. The customers can very easily get a profound idea about the various dishes available and thereby make proper choices. This is how Uber Eats working.
According to Smith Uber eats has introduced some of the best services for reaching out to the majority of the customers. The customers are the pillars of success in any particular organisation. It implies that there is a need to serve the customers effectively so that higher revenues can be generated and the goodwill can also be upheld. The company has very well tapped the online food delivery market whereby it can easily make a strong impact in the best possible manner. The customers have also responded to the business strategy and vision appropriately. The pandemic is one of the major reasons behind the sudden growth and acceleration of the company and the online food delivery market. The market is growing as a majority of the customers are striving to stay indoors and order food from outside. The people intend to avoid the crowds so that they stay safe from all kinds of health-related issues.
How Uber Eats Makes Money
Understanding Uber Eats working is incomplete if we do not look in to how Uber Eats make money. The company follows an on-demand business model through which it can achieve the highest possible return with the least amount of costs, investments or hassle. The customers can find the nearby restaurants to order their favourite dishes. They can track the delivery person while he delivers the food to their doorsteps within 30 minutes of ordering. Uber Eats has perfectly designed a food triangle between end customers, delivery partners and restaurant partners, which forms the foundation of how does Uber Eats work. At the first step, restaurants get enrolled in the platform. At the second step, customers residing in the area can locate these restaurants, have a look at the menu and order their favourite cuisines.
At the third step, the nearby driver picks up the food from the restaurants and drop it off at the doorstep of the customer. Two types of methods are offered by Uber Eats during order placement, that is, real time ordering and scheduled ordering. Through real time ordering, the customers can select ASAP option and the food will be delivered within 30 minutes. Through scheduled ordering, the customers can pre-schedule an order suggesting a future date. These orders can be customised according to future needs. The delivery partners are the independent individuals, who pick up food from the restaurants and deliver them to the customers.
The drivers are given duty according to their location or proximity from the restaurant or the customer. The drivers receive fee after they complete one delivery. Every time they visit a new restaurant to pick up a new order, the fee is credited to their account. The amount of fee also depends on the kilometre/mile travelled by the driver. The approximate payment received by the drivers for each delivery is $4. A service charge ranging between 15 and 30% is deducted from the final payment of the drivers according to their travelling locations.
Restaurants who wish to partner with Uber Eats get a virtual presence as they offer their items to the customers. Uber Eats generally takes 30% commission from their restaurant partners This is the primary source of how Uber Eats make money and its business operations align with Uber’s mission statement. The cost strictly varies according to the cost of each delivered item. The rate of each item displayed on the Uber Eats platform might differ from the rates at the physical restaurant. The business model operates sequentially following four steps, that is, searching restaurants by customers, placing order, picking up the order by the valet and then delivery of order. After delivery, the valet receives the payment from the company.
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