According to the Wall Street Journal, after the Uber taxi service was recently banned by Japan, they will launch a takeaway delivery service in Tokyo today.
In addition to Tokyo, the company will also launch take-away delivery services in Dubai, Amsterdam, and Johannesburg. It will also be ready to settle in Brussels, Stockholm, Hong Kong, Taipei, Jakarta and Bangkok in the coming months.
In fact, Uber's take-away delivery business, UberEats, was established as early as 2014, followed by a symbolic test in six countries. This time Uber is not only trying to experiment, but has fully entered the global takeaway distribution market and claims to have settled in at least 22 new countries. To that end, the UberEats division plans to recruit hundreds of employees and increase the amount of investment.
Simon Rossi, general manager of UberEats Asia Pacific, said at a press conference yesterday: I think UberEats is the most important focus within Uber.
Of course, Uber's efforts to expand this market may encounter resistance from investors. Food delivery services are not the eyes of investors in the current environment. According to the CBInsights report, investors have invested US$10 billion into the food distribution market since 2014, but the amount of investment in the first half of this year has fallen by more than half. Why the investment is down, the reason is simple: too many players.
Delivery is very regional, and it can be seen from the domestic market that its competition is intense. And this is not just a problem that can be solved by money, but also depends on powerful ground forces to capture a city or even a merchant. Therefore, preconceived old players are more dominant.
The old players have a deeper customer base and have accumulated local relationships in various places. The distribution of interests with restaurants is well coordinated. At this time, Uber wants to get a share from them, which is very difficult. Some start-ups have been forced to close their doors due to high operating costs and insufficient funds even after they have expanded into multiple cities, such as Belgian Eat Eat Easy and London's Pronto.
This month, Amazon Restaurants, the Internet giant’s distribution business, began expanding overseas markets. Amazon’s restaurants have now settled in 11 cities in the United States. In the coming days, Amazon will also start a positive contest with Uber.
Therefore, from the current harsh investment and market competition environment, Uber's take-away delivery path is a long way to go.
Related Reading:
UberEATS take-away service officially enters Asian market and is piloted in Singapore
Uber to expand room service to 10 U.S. cities
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