The Hustle

UberEats is so popular it’s reshaping the entire food service industry

Uber’s food delivery business, UberEats, has been the talk of the town since analysts valued it at nearly $20B. But Uber isn’t just banking on existing late-night burrito delivery, it’s also fostering new local restaurants, which can now afford to...


November 5, 2018

Uber’s food delivery business, UberEats, has been the talk of the town since analysts valued it at nearly $20B. But Uber isn’t just banking on existing late-night burrito delivery, it’s also fostering new local restaurants, which can now afford to operate almost solely online.

Bloomberg reports that these new delivery-only setups are becoming all the more popular, and it’s turning the traditionally thin-margined restaurant industry on its head.

Nobody ever goes in, and nobody ever goes out… 

Ghost restaurants” (restaurants with no brick-and-mortar presence) have been gaining in popularity since 2016, allowing companies like Green Summit to crank out different cuisines under multiple virtual restaurant brands all from one industrial kitchen.

These brands have been so successful that UberEats is now using its data to actively encourage their creation.

Here’s how it works: 

It’s aaalll part of Uber’s plan

Despite a mere $11B valuation, Grubhub remains the profitable industry leader with a 52% market share. 

The main difference? UberEats is growing faster — in part thanks to its virtual restaurant program, which now works with 1.6k virtual restaurants globally.

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