Melody Hahm reports for Yahoo Finance:
Uber is digging deeper into the business of food. Uber’s restaurant delivery business “Eats” hit $6 billion in bookings earlier this year, growing over 200%, quickly becoming a crown jewel for the ride-sharing company.
Uber CEO Dara Khosrowshahi said given the success in the delivery of food, the next logical step is to enter the grocery space.
“We will move into grocery. That’s fundamental. A lot more people will be eating at home. Right now we are busy with Eats, but you can see grocery as an adjacent business. We’re thinking about Uber much more as a platform,” he said at Vanity Fair’s New Establishment Summit 2018 on Tuesday.
Earlier this year, Uber had teamed up with Walmart (WMT) to test out grocery delivery. The initiative, originally billed as an ambitious move to take on Amazon, was quietly scrapped in May after a short three months.
It’s a saturated space, with startups like Instacart, Amazon Fresh and Postmates Fresh all formidable competitors.
“Eating is something people do three times a day and someone needs to be the orchestration layer. The real challenge for us is where do we focus, where do we partner,” Khosrowshahi said, suggesting the intention to go at it alone this time around.
“Transportation is a $6 trillion business and we’re 1% of it,” he said, saying he plans to make a push into the freight business as well. Uber is on track to go public next year.