Nowadays, when we are hungry, do we always cook?
Not always, right?
Instead of thinking about what to cook, most of us search for our mobile phones.
Just take our mobile and order our favorite food from our favorite restaurants.
How?
The answer is through food delivery apps.
In this Uber Eats case study, we will discuss one food delivery app that has gained popularity since its invention. It is none other than “Uber Eats.”
We will learn about the Uber Eats case study, digital marketing strategy, and Uber Eats competitor analysis.
There was a time when eating outside was a sort of social gathering. While it is still the same for many, eating out has become more of a necessity.
It could range from a cup of relaxing tea to a craving for a sweet. Now that necessity is delivered to one’s doorstep.
Although people nowadays depend a lot on food delivery apps. How did the idea of ordering food originate?
This article summarizes how online food ordering existed, the major players in this field, and the Uber Eats case study and marketing strategy.
How did the Food Delivery Idea Emerge?
Uber Eats case study reveals that this service began during World War II.
Then, people did not have a kitchen or home appliances, so they did not have other cooking options.
Food delivery services started spreading to the United States and Philadelphia from the UK.
They supplied food to the needy and those who were at home.
Also, the government ensured that each house was filled with food so nobody stayed hungry. This method spread fast to other parts of the country, including New York and Columbus.
When its benefit began spreading to other parts of the world, others also jumped into this field. Then, in 1952, Australia started its first food delivery service.
Modern Food Delivery System
By then, restaurants had introduced toll-free numbers so customers could call to order food without charges. With time, the idea of a food ordering system was appreciated by many.
This way, customers could contact the restaurants and enjoy their favorite food delivered to their homes. It led to the invention of online food ordering and delivery services.
Today, there is hardly any country where we will not find a food ordering and delivery service. Moreover, as more and more restaurants join the race, the online food ordering market expands.
As a result, online food ordering and delivery systems have started gaining fame over the previous years.
Digital Age Driving the Growth of Online Food Ordering Services
Online food ordering and delivery popularity is a significant aspect of the digital age culture. We could find Millennials considering online food ordering quite common in recent times. Due to the increase in online customers, the Uber Eats market has grown.
However, most traditional businesses have embraced these trends and moved online despite the growing demand.
With the advent of modern technologies, the food industry gained several new investors regularly.
The online food delivery service is booming with popular apps like Uber Eats and other meal delivery services. Forbes predicted that this industry will have annual sales of around $365 billion worldwide by 2030.
The online food delivery industry has grown immensely over the past five years.
Headed by platform-to-consumer services, such as DoorDash and Uber Eats, online food delivery service has expanded, including takeaways, thus, increasing the potential revenue.
The past few years have also witnessed more partnerships as large businesses attempt to reduce competition in the market.
COVID-19 has driven the industry a few years into the future, as many of us ordered food online for the first time during the lockdown.
Uber Eats case study proves that Uber Eats reported a massive increase in orders between February and March when the entire world was in lockdown.
This case study will examine Uber eats analysis and the Uber Eats Marketing strategy that helped them gain popularity and increase revenue.
What is SWOT Analysis?
SWOT analysis is a strategic planning and management method to help organizations identify strengths, weaknesses, opportunities, and threats.
It evaluates an organization’s competitive position, external and internal factors, and existing and future potential.
Uber Eats Case Study
Uber Eats is an online food ordering service by Uber Technologies. It operates in over 6,000 cities across 45 nations and is expanding its business fast.
Customers use a separate smartphone app, Uber Eats, to order food online. It allows customers to order food from a selected range of restaurants. The collected food is delivered to customers by Uber drivers.
With Uber’s Fast Delivery, customers can get their favorite food from their favorite restaurants within 10 minutes at their doorstep. Being a late participant in the online food delivery business, UberEats has its advantages.
It got the opportunity to learn from other prominent players in the market and redefine the competitive landscape.
This Uber Eats case study analyzes the major competitors, recent trends in customer behaviors, and Uber Eats marketing tactics execution.
The Uber Eats case study proves that one of the significant reasons behind Uber Eats success is its strong brand image and its unique values.
According to the Uber Eats case study, it has lower delivery rates and faster delivery than Grubhub, Postmates, and other online food delivery services.
However, ordering food from Uber Eats gave many a limited experience. Uber Eats case study shows that there were restricted food choices and restaurants. Moreover, no option for food customization makes customers feel unsatisfied with Uber Eats.
The company focuses on customer reviews and keeps upgrading its service. For example, in 2016, Uber Eats launched two ways to order food.
First, customers could order from restaurants through the app or pre-fixed lunch options. Then, Uber would deliver the same in 10 minutes.
These new features made Uber Eats more convenient and satisfied many customers with different needs and preferences.
Uber Eats Case Study- Acquisition by Zomato
On 21st January 2020, the only big news was that Zomato acquired Uber Eats. The deal has been in progress since 2019 and was finally concluded for $350 million. This deal was an all-stock transaction.
Zomato did not pay the monetary prize for this deal but offered an equal share in the company. Customers trying to order food from Uber Eats came across Zomato’s page.
A Uber Eats case study proves that the exit of Uber Eats from the food delivery industry has made the food delivery market a duopoly between Swiggy and Zomato.
Uber Eats is the third most popular name in online food delivery. Swiggy was and is still a tremendous competitor. While Swiggy gets nearly 1.4 million orders daily, Zomato receives around 1.2 million orders, whereas Uber Eats gets only 4 lakh daily.
When this challenging competition was going on, the two startups, Zomato and Swiggy, saw a new competitor in the market. The e-commerce giant, Amazon, entered the food delivery market with new strategies and offerings.
SWOT Analysis of Uber Eats
Strengths
- Speedy delivery. Customers get their favorite food within 10 minutes at their doorstep.
- Flexibility in food delivery.
- A separate team of drivers handling Uber Eats deliveries avoids overlap with regular Uber cab drivers.
- No hidden charges ensure transparency and consistency in price.
Weakness
- Restricted selection of restaurants.
- To know the reviews of restaurants, customers need to log in to Yelp.
- The items under the “Uber Instant Delivery” menu are prepared beforehand and kept in the driver’s vehicle. It is the reason why customers throw food many times.
Opportunity
- Uber Eats is available in over 6,000 cities across 45 countries and is expanding.
- Being a late entry in the online food delivery industry, Uber eats got the chance to learn from other major players’ mistakes.
- Give customers the option to place orders in advance. It will help them in assessing the demand for food from each restaurant.
- Offer customers the flexibility to get their food delivered at their available time.
Threat
- Uber Eats is a new name in the online food delivery industry.
- Other major food delivery apps like Postmates partner with Chiptole, Starbucks, and other famous companies.
Top 5 Competitors of Uber Eats
- DoorDash
- GrubHub
- Postmates
- Slice
- Deliveroo
Revenue of Uber Eats
| 2018 | $1.5 billion |
| 2019 | $1.9 billion |
| 2020 | $4.8 billion |
Conclusion
Uber Eats is a name that has become synonymous with distraction, challenging norms, and changing rules in an industry that has been around for decades.
Though Uber Eats has had its share of challenges since its launch, its forward-thinking, flexible approach helped it become an industry leader.
This Uber Eats case study narrates the story of Uber Eats, including how it started, became the third most popular food delivery app, and became a common name in everyday life.
