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Uber (NYSE:UBER) CEO Says The Company Could Soon Offer Retail Delivery Services

Uber Technologies (NYSE:UBER) CEO Dara Khosrowshahi has indicated that the ride-hailing company has a similar model as that of e-commerce giant Amazon (NASDAQ:AMZN). Khosrowshahi indicated that Uber can offer more than just booking rides.

Uber CEO wants to transform transport marketplace

The CEO said that the company is fundamentally distinct from other companies because it operates at the intersection of the digital and physical realms. He wants to transform Uber into a marketplace that is offering almost all forms of transport. The forms include taxi-hailing, flying vehicles, scooter, and subway, which can help people choose the best mode to get them to their destination. The company could soon start offering courier services for retail businesses.

While speaking at a meeting at the Economic Club of New York, the CEO stated that they could extend the Uber Eats model to various retailers. He added that this implies that anything you want could be delivered anywhere you want, possibly within 30 minutes. At the beginning of this year, the company began integrating the Uber EATs services to the main app offering the option of choosing either Rides or Eats.

Uber to form partnerships with retailers

In October, the company acquired a majority interest in Chilean online grocery provider Cornershop. The company is targeting an expansion of the delivery service to include groceries as well as other items. Also, last month, the company entered an agreement with popular cooking-show celebrity Rachael Ray to be delivering meals from her recipes through Uber.

Although the company has been enhancing business in the food delivery marketplace, the CEO indicated that they also plan to extend that model to single local retailers. Khosrowshahi said that although the company is modeling itself like Amazon, it nonetheless wants to try a different approach. He said that instead of creating a platform for the ecosystem, the company wants to establish partnerships.

Despite all these ambitious plans, the company is facing a slew of challenges. First, it is yet to make a profit, and then there is growing regulatory scrutiny threatening the company’s business model.

Published by Ruchi Gupta

Swati Goyal has over 6 years of experience in financial research & analysis domain. She has built financial models varying from consumer goods to banks. She has her articles published in leading dailies of the nation

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