3.5.17

UberEATS debuts

San Francisco-based cab-hailing major Uber launched its food delivery business UberEATS in India, competing with existing players like Swiggy and Zomato. Having launched its operations in select areas of Mumbai, UberEats plans to have the service in the top six cities by year-end.
Globally, UberEATS is available in 78 cities across 26 countries. The company is believed to be charging a higher commission compared with its rivals Zomato and Swiggy . Existing players typically charge 15-20% of the order value as their commission. UberEATS will also levy a Rs.15 delivery fee as it does not have any minimum order threshold for users.

Over the last two years, food technology firms have seen several ups and downs with the likes of TinyOwl shutting shop and many others forced to prune their operations as margins in the business are wafer thin.

Uber's Indian rival Ola too had started a food delivery service, Ola Cafe, which was shut down last year as the cab aggregator decided to focus on its core business.

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