The food delivery business has suddenly shifted from being about consumer convenience to a battle of market competitors more focused on profits and flattening the value chain than providing options. An industry focused on giving hungry consumers the opportunity to select from a wide array of dinner-time choices has morphed into pizza delivery 2.0 and that’s, at best, boring. Simply said, the home chef faces a lot of cacophonies when it comes to grocery delivery, meal kits, and restaurant fare (home and away).
Profits are a good thing, especially for public companies or ones with an eye on expansion or acquisition. However, what we find in recent announcements is a change from the initial concept of turning a fleet of rideshare drivers into a virtual extension of a city’s best restaurants. When Uber Eats acquires Ando, a “dark kitchen,” its fare likely will become the focus of its New York delivery options. The king of all rideshare firms thus sends a signal to its customers that Ando’s bibimbap and fried chicken will be tonight’s special every night. The food delivery business is heading for a 180-turn, moving from delighted consumers (as we see in the GrubHub ads) to one of supplier vertical consolidation.
“We are committed to investing in technology that helps consumers, delivery and restaurant partners alike,” Jason Droege, Head of Uber Everything told TechCrunch. “Ando’s insights will help our restaurant technology team as we work with our restaurant partners to grow their business.”
None of this is to say that Uber Eats is wrong or alone in seeking ways to increase its bottom line. Others such as Deliveroo and Amazon are connecting pieces of the value chain—that is owning the food prep and delivery segments of the business—to streamline its operations. And, from a business 101 perspective, it is a sound idea if the founding principle of consumer choice remains intact.
Read more at The Spoon: https://thespoon.tech/uber-eats-move-adds-to-a-noisy-competitive-delivery-market/