Uber is branching out of Taxi service into food delivery with its UberEATS app in South Africa.
Like other food ordering services, UberEATS permits its users in a 4km radius to order food from its app. The users will also be notified on how long they have to wait till they receive their meal, and also be updated on the meal preparation.
The company hopes to use the service to advance its knowledge on logistics in the South African market. David Kitley, Uber’s operation and logistics manager for sub-Saharan Africa, said that there’s great opportunity for logistics in SA.
“We have launched UberRUSH – our logistics platform – in a number of international cities, off the back of a successful UberEATS launch. So we are going to be using UberEATS as that first test case in Johannesburg to better understand the market, what consumers are looking for, as well as logistics. And then we can start looking at what we can complement.”
UberEATS was founded in 2014 and has since been launched in about 6 cities including; Melbourne Australia, Los Angeles USA, and recently in Johannesburg.
In South Africa, about 85 restaurants have signed up to be a part of the service. UberEATS will not only make use of Uber’s driver base but it is also looking to include two-wheeled vehicle drivers who do not mind earning some extra cash.
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“It is very similar in characteristics to how Uber works in general. What we are seeing so far with those that are signing up for UberEATS with two wheels… is that they are either coming from existing restaurants or other industries they provide services to – like pharmaceutical, tech, and other platforms. So this is just an additional form of income for them.”
The restaurants using UberEATS’ platform are being charged a service fee of R20 (US$1.47). On the flip side, users of the app are given a discount of R100 ($7.33) off their first order.