Uber & # 39; s CEO believes Eats is a secret weapon in the battle for wars

Uber is experimenting with increasing the cross-promotion of its Eats food delivery service and its range of rides in the company's app, CEO Dara Khosrowshahi said Thursday. Khosrowshahi said he felt comfortable trying this after finding out that when customers use more than one of the company's products, their involvement with Uber "more than doubles". He also believes that this can help strengthen the dominance of the company in certain emerging markets.

Advertisements

"What we really want to do is significantly increase the percentage of our MAPC's (monthly active platform users) using both products," said Khosrowshahi, about his first call to investors since Uber went public earlier this year. "Suffice it to say that we are starting to experiment in ways that we can sell our ride customers (customers) to Eats deals, in a way that, to make it clear to you, is not annoying, and in a way that is our riders. "

He told investors that the company's ride tuning service is already a & # 39; very strong audience creator & # 39; is for Uber Eats. But he also said that 50 percent of Eats' customers do not use Uber for ride enhancement; the food delivery service brings in new customers. "These are customers that we can then sell in the rides business," said Khosrowshahi.

Uber is only in the "very, very early" stages of "exploring the many, many ways in which (the company) does business can help continue building (its) Eats activities and vice versa," said Khosrowshahi. But, he added, Uber has seen "very, very encouraging" early returns.

Uber's losses have only accelerated this year, when the company confirmed on Thursday that it lost $ 1 billion in the first quarter of 2019, after taking a $ 3 billion bath in 2018. Increasing the cross-promotion of the Eats and standard Uber services is a way company hopes to support bleeding.

Khosrowshahi sees food delivery as a huge new opportunity for business, even though it faces fierce competition in certain markets. In India, for example, Uber Eats is against multiple well-funded startups. But in Latin America, Khosrowshahi said that Uber "can uniquely benefit from the synergies between the two offers, since we are the only company (there) that offers both rides and Eats."

"It's a huge category, and there are some people who believe that the food category can be larger than the trip category," he said. Despite the many challenges it faces, Eats generated $ 536 million in revenue for Uber in the first quarter of 2019. That is almost double the revenue it generated in the first quarter of 2018. In the meantime, Uber's income increased by only 9 percent per year. over-year.

Advertisements

Uber's goal is to create the & # 39; one-stop-shop & # 39; to become for the movement of people and to stimulate local trade around the world, & Khosrowshahi said. Since taking over as CEO in 2017, Khosrowshahi has added shared scooters, bicycles, schedules & # 39; s for public transportation (and in Denver, even the option to purchase tickets) to the Uber app. That comes on top of the special self-driving and flying car divisions that he inherited from his predecessor, Uber co-founder Travis Kalanick.

"You just have the entire transport ecosystem in one app, all your information fully integrated, with a loyalty program underneath. We think this is a very, very powerful product," he said. "But it will take time before all of this comes together."

- Advertisement -