Uber buys Postmates for $2.65 billion: Are food delivery apps becoming inevitable among people?

COVID-19 has made lives difficult for ride-hailing companies. Even the taxi giant Uber posted a $2.9 billion loss in the first three months of the year. At the same time, Uber’s food delivery division UberEats shows rays of hope. Its revenue rose by 53% ever since the pandemic. Besides, ordering through the platform has almost doubled when compared to the previous year.

Rumors in the air regarding Uber acquiring established brands and startups are ever-present. Recently though, Uber has agreed on an all-stock deal with the delivery startup Postmates for $2.65 billion. Is this the sign that Uber has begun to rely on food delivery services for its primary revenue? Can Uber manage its ride-hailing losses by enhancing its food delivery business? Scroll down to know the impact of this Uber-Postmates deal and the future of UberEats Clone food delivery apps.

The background of the deal 

There’s nothing to hide in the fact that the Uber-Grubhub merger was under advanced talks. However, the deal couldn’t materialize with JustEat Takeaway acquiring Grubhub for $7.3 billion.

Postmates, too, had a possible deal with the largest food delivery service provider in the US, DoorDash. Besides, links between Postmates and Grubhub created a buzz as well.

Finally, on July 6, Uber had announced that it had reached a definitive agreement with Postmates for approximately $2.65 billion in an all-stock transaction. Postmates will continue to operate under its own name, said The New York Times.

The deal changes the delivery dynamics of the US 

With so many food delivery apps offering similar services, the market is in desperate need of an evolution. The sign of players combining marks a new phase in the food delivery services business.

According to Edison Trends, DoorDash remains a prominent force in the US with a market share of 45%. The Uber-Postmates deal propels UberEats to the second position with a 37% share. The deal closes the gap between UberEats and DoorDash significantly. Grubhub follows behind with a market share of 17%.

By joining hands with a delivery chain, UberEats can scale great heights in the food delivery services segment.

Uber’s on-demand force gains strength 

“Over the past eight years, we have been focused on a single mission: enable anyone to have anything delivered to them on-demand,” says Postmates co-founder, Bastian Lehmann. With Uber being the pioneer of the on-demand market, this deal proves to be the next big thing in the on-demand app industry.

Postmates was last valued at $2.4 billion by investors, with over 10 million customers under its belt. The startup was among the first to introduce the concept of ‘gig’ delivery workers. Needless to say, Uber’s delivery chain has gained strength with the likes of inputs from Postmates.

Another lookout feature of Postmates includes its subscription plan of $9.99 per month, enabling users to avail no-fee deliveries. UberEats will more likely implement these strategies, thereby taking their business to the next level.

The future holds innovations and convenience 

With the market for delivery services flourishing, there cannot be an ideal time to invest in an UberEats clone than now. Harnessing the power of technology to launch a stand apart product can help an entrepreneur reap revenues. Some of the innovative ideas worth considering in the future include,

• Delivery by drones: With road transport becoming increasingly congested, this delivery technique is very much a possibility. Major platforms have already initiated this delivery method and have gained enhanced success. Drones make the whole process efficient, time-conserving, and fail-proof.
• Delivery by robots: In a world ruled by AI and ML, delivery by robots isn’t too complex to achieve. Swift delivery through AI-powered robots can take the food delivery industry to a whole new level.

Besides these techniques, delivery through parachutes has also gained a positive reception among the audience.

Offer more than just food delivery 

Making an impact and distinguishing the app from others is vital to enhance sustainability. Taking a step ahead than the rivals can make all the difference. Some of the crucial strategies worth considering include,

• Ordering through smartphones: Gadgets and wearable devices are getting increasingly popular with each passing day. Enabling users to order food via their smartwatches can enhance their convenience and the platform’s accessibility.
• In-car ordering system: People should have the option of accessing your platform with an in-car ordering system. This way, people can order food during a drive and pick the food orders on the go.
• Ordering via smart TVs: Smart TVs are ruling the electronics industry. What’s more comfortable when people can binge-watch their favorite TV series and order food simultaneously?

The COVID-19 pandemic is making food delivery services inevitable  

Coronavirus pandemic appears to be fueling the need for delivery services. People, fearing virus contractions, find it convenient to avail doorstep services. On the other hand, restaurants depend on deliveries and takeaways, with governments of various nations ruling out the possibility of dine-ins.

Both grocery and food delivery apps have surged in their numbers ever since the onset of the pandemic. Even after the panic buying saga, people rely on these platforms for their essentials, mainly because of their enhanced comfort.

A food delivery app, pertaining to the perfect safety standards, can easily register a place in customer’s smartphones. With the situation returning to the normal state of affairs, the UberEats clone can bridge the gap between users and restaurants.

With even giants like Uber beginning to rely on this vast food delivery market, entrepreneurs needn’t hesitate to invest in this lucrative business opportunity.

Summing up, 

Uber’s deal with Postmates has signified that the food delivery market will continue to rise during and post-COVID-19. The advancements in modern technology have made the process of app development easier with clone app solutions.

Entrepreneurs can reach out to our experts at Appdupe, tell them your needs, and launch an UberEats clone in no time.

Author

Marketing is my soul mate and writing is my side kick. Using my writing skills to share the knowledge of app development and upcoming technologies.