UBER is now a publicly traded company which means each quarter we’ll get a great picture into the economics of meal delivery.
And if recent reporting are to be believed, UBER Eats costs are continuing to rise as competition continues to heat up.
The rideshare company that also focuses heavily on meal delivery services had their first public investors call last week, and one of the largest jumps in costs for the business was UBER Eats, part of their business that is still fighting to expand into a marketplace where they face a lot more competition.
In the rideshare world, UBER really only runs into Lyft in most cities. But with meal delivery, the company ends up running into at least a half-dozen well-funded competitors, and of course Amazon.
This isn’t necessarily a bad sign for UBER, but rather a sign that the meal delivery space continues to be challenging, even for a company with as many resources as UBER.