Uber Taking Over GrubHub is a Win for Restaurants
It is not easy for restaurants in today’s day in age. In addition to rising labor costs and rental payments, a worldwide pandemic has not helped. One of the biggest factors that’s also eating the profits away are delivery fees. Restaurants have to keep up with the increase demand of delivery more than ever. There are lots of services for consumers to choose from, so as a result restaurants feel they have to be on more than less to get their name out. That means an increase in delivery fees as more and more payments go out to these services.
Uber is coming to save the day for these businesses in times of trouble. Although, they already have Uber Eats, by planning to combine themselves with GrubHub, they give themselves a major delivery platform, one less option for restaurants and more of a reason for restaurants to align with them over others. As Uber takes more of the market share, restaurants can subsidize costs by just going with the largest platform. This is bad news for DoorDash and Postmates as it just makes too much sense for restaurants to choose the service with the largest customer base and strongest logistics service in order to save costs.
We may be sick of hearing about Uber in the news given their constant controversies. However, just as they became a verb for ride sharing, the word “Uber” will also be used for food delivery, if they can get this done. Between the layoffs, loss in revenue and the inability to make a consistent profit, Uber looks like a stock to stay away from. In the long run, they’ll be one to keep an eye out on as the years go on because they just dominate so many essential industries.