Uber expands its same-day local delivery business to more cities (2023)

Uber Connect, the ride-hail company’s same-day courier service, is expanding to more cities. It’s also getting a few new features to make sending and receiving items easier for customers and drivers.

Uber Connect is now available in 6,000 cities and towns in the US, including major markets like New York City, Philadelphia, Pittsburgh, Los Angeles, San Francisco, and San Diego. The service was initially launched in April 2020 as a means to diversify Uber’s business during the early months of the pandemic. Since then, the company has seen incredible growth in Uber Connect, registering a 200 percent increase in trips since the first week of January 2021.

(Video) Uber expands its same-day local delivery business to more cities - The Verge

In addition to expanding to more markets, Uber is also allowing the sender to include delivery instructions (e.g. Handle with care) to their driver and arrange “meet at door” pick-up and delivery. Originally, the package recipient needed to meet the courier at the curb.

(Video) Uber Connect Expands Into More Markets!

This isn’t the first time that Uber has experimented with same-day local deliveries. From 2014 to 2018, the company operated a business called Uber Rush. The company even opened an API to allow private businesses to use it as a delivery option, but never grew it beyond a handful of major cities.

During the pandemic, Uber’s core ride-hailing business tanked as a result of lockdown orders. In response, the company quickly pivoted to food delivery and later to groceries, as it sought to find new revenue streams. Uber is still relying heavily on cash from its delivery products as it struggles to make up for a nationwide driver shortage. (Of course, delivery won’t work without drivers either.)

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To help fuel its grocery delivery expansion, Uber has acquired a number of smaller startups in recent months, includingPostmates,Cornershop, andDrizly, as it seeks to expand its delivery options. Uber is alsopartnering with delivery startup Gopuff, which specializes in delivering “essential” or “instant need” items, like liquor, beauty and pet products, snacks, and over-the-counter medication.


What does the future look like for Uber? ›

Beyond Uber's commitment to be a net-zero platform by 2040, we've pledged to be net zero in a number of cities by 2030. That commitment translates into several specific offerings in our mobility and delivery lines of business.

When did Uber start delivering packages? ›

Uber Connect is now available in 6,000 cities and towns in the US, including major markets like New York City, Philadelphia, Pittsburgh, Los Angeles, San Francisco, and San Diego. The service was initially launched in April 2020 as a means to diversify Uber's business during the early months of the pandemic.

Can Uber be used as a delivery service? ›

Uber Connect is an easy delivery solution that allows people to send items the same day, whether it's a care package for a loved one, a gift for a friend's birthday, an item sold online, or a business document.

Is Uber Connect still a thing? ›

Yes, Uber Connect is a package delivery service. Uber expects customers to meet their drivers curbside so that the Uber driver doesn't need to find parking. If there's a problem with doing so, let the driver know in the special instructions area of the app.

What are the challenges faced by Uber? ›

Aside from non-compliance with taxes, Uber drivers face incredible risk when working in cities or countries that have banned the company. In various countries, Uber is outright forbidden. 6 In others, there is a call for regulation in the industry or for the governments to declare the car-sharing app illegal.

Will Uber continue to be successful? ›

Despite losing some investor confidence amid continued Covid headwinds, Uber could be positioning itself for a comeback in 2022, analysts say.

Is Uber still expanding? ›

Uber, which operates in more than 70 countries and 10,000 cities globally, will compete locally with services such as Gett and Yango. Uber Technologies Inc said it was launching its ride-hailing platform in Israel by connecting to a nationwide network of licensed taxis, as it continues to expand globally.

What came first Uber Eats or DoorDash? ›

DoorDash began delivering food in Palo Alto, California, two years later, and Uber launched its food delivery business in 2014.

When did Uber start tipping drivers? ›

Uber is rolling out a number of driver improvements, including the most sought-after feature: Tipping. The new feature — which drivers have fought for during protests dating back to at least 2014 — goes live today in Seattle, Minneapolis and Houston.

What are the three types of Uber? ›

  • UberXL. Affordable rides for groups up to 6. Learn more about UberXL.
  • Uber Comfort. Newer cars with extra legroom. Learn more about Uber Comfort.
  • Uber Black. Premium rides in luxury cars. ...
  • Uber Black SUV. Premium rides for 6 in luxury SUVs. ...
  • Uber WAV. Ride assistance for seniors and people with disabilities.

Can I use Uber to move a TV? ›

Could I use Uber XL for moving? Rideshare apps like Uber are intended for arranging the transportation of passengers, not cargo. And, while some may have used them to carry small items in a pinch, the vehicles are generally not large enough for large items like furniture.

Is Uber Eats the same as Uber delivery? ›

Uber and Uber Eats are two separate apps. Uber is for ordering car rides, while Uber Eats is for ordering food deliveries.

Why is Uber shutting down? ›

Uber would likely shut down temporarily for several months if a court does not overturn a recent ruling requiring it to classify its drivers as full-time employees, CEO Dara Khosrowshahi said in an interview with Stephanie Ruhle on Wednesday on MSNBC.

What has replaced Uber? ›

More than 80 countries rely on the services provided by this platform regularly. Compared to the most popular Uber alternatives, this platform has a lot of happy and satisfied consumers.
The Best 8 Uber Alternatives to Compete With…
  • Ola Cabs. ...
  • Lyft. ...
  • Gett. ...
  • goCatch. ...
  • Cabify. ...
  • LeCab. ...
  • Grab. ...
  • Didi Chuxing.

Do you tip Uber drivers? ›

You are free to tip and drivers and delivery people are free to accept tips at any time. Giving cash directly to your driver-partner or delivery person is never an option. Where available, you may also tip through the app, on riders.uber.com and from your emailed trip receipt.

What is the greatest challenge that Uber seems to be facing? ›

Perhaps the biggest hurdle is Uber's failure to mandate that their drivers obtain the same license types as professional taxi drivers even though Uber drivers offer many of the same services as professionally licensed taxi drivers.

What is the biggest challenge in Uber's business model? ›

Uber's profit problem

Approved drivers work as independent contractors to fulfill rides and deliveries, and Uber pays them while taking part of the fare as revenue. Uber's most significant problem so far is its inability to actually make money.

How did Uber expand? ›

The Uber files show how the cab-hailing app bulldozed its way into cities around the world through a combination of lobbying, manipulating tech, fighting regulations and exploiting drivers.

Is Uber struggling financially? ›

The company lost $1.2 billion over the last three months, in large part because of poorly performing investments in other businesses. Yet Uber's stock was up 12% Tuesday on data showing people are spending more on rides and food delivery. Third-quarter revenue surged by 72% from a year ago.

Who makes more Uber or Lyft? ›

Lyft and Uber drivers earn approximately the same average per month, but the tips and earnings per trip are higher for Lyft. Lyft drivers have the opportunity to earn a much larger amount of tips, while Uber just recently introduced in-app tipping features for passengers.

Are Uber drivers making less money? ›

Josh Gold, a spokesman for Uber, said that its drivers “remain busy by any metric,” and that their earnings have increased significantly in recent years. Uber drivers now earn an average of $33.30 per hour before tips, up from $23.50 per hour in 2018, according to Uber data.

When did Uber expand to other cities? ›

In August 2014, Uber launched a shared transport service in the San Francisco Bay Area. The service soon launched in other cities worldwide.

What is the future of Uber 2022? ›

Safety is always top of mind, and 2022 was no different. We launched a slate of new features to help keep drivers safe: improved in-app navigation to suggest fewer left turns, alerting drivers before approaching a four-way intersection without signals, and the expansion of our optional in-app Audio Recording feature.

Is Uber still bigger than Lyft? ›

Of course, there's a lot to differentiate the two from one another. Uber is global, while Lyft only operates in North America. Uber dominates ride-sharing, taking in roughly 70 percent of US riders spending and leaving Lyft with the rest.

Who makes more dashers or Uber Eats? ›

Though both platforms pay almost the same per order, DoorDash pays more to the dashers, considering the volume of orders and dashers. While Uber Eats is faster in delivering the food. It is a good time to step in and take advantage and provide the service to a group of people that do love to order food online.

Which is cheaper Uber Eats or DoorDash? ›

You should now know that DoorDash usually has lower fees than Uber Eats. Both restaurants and customers can get cheaper deals through DoorDash than via the Uber Eats online platform or mobile app. Sometimes, you may see lower delivery fees at Uber Eats. But, overall, DoorDash is the cheaper option.

Is DoorDash beating Uber Eats? ›

Yet somehow, DoorDash has managed to continue to grow revenue and take share. At 57% market share in October, it has more than doubled its closest competitor, Uber Eats. Grubhub, the dominant player as recently as 2018, has been completely left in the dust.

Why did Uber not want to tip drivers? ›

Uber cited studies that found discrimination bias affects the amount customers are willing to offer as gratuity. Secondly, the company suggests that a tipping function could lead Uber drivers to “spend more time where tips are likely to be highest — typically the wealthiest neighborhoods.”

Why do Uber riders not tip? ›

I think it is mostly because people do usually tip taxi drivers but Uber has trained riders not to tip rideshare drivers, first by telling them "the tip is included" then by telling them "there's no need to tip" after they were sued. People didn't just decide overnight to stop tipping drivers.

How much do you tip an Uber driver? ›

How much should you tip your Uber driver? You should tip Uber ride 10% - 20% of your ride payment as a common courtesy. 10% if the ride was fair and 20% if the rider went above and beyond. This means the driver helps you with luggage or bags or you bring your pet along, etc.

Which Uber type makes the most money? ›

The type of Uber you're driving

But Uber Black drivers make more per mile, per fare, and per minute than UberX drivers. Keep in mind that driving for a “premier” tier doesn't mean you'll always make more cash.

Which Uber type pays the most? ›

According to our 2019 RIDES survey, we found that the average UberX driver makes $13.70 per hour before tips, or $14.73 after tips are calculated in. UberXL and Select drivers earn just under $15 per hour before tips, while Uber Black driver wages average out at an impressive $24.87 per hour before tips.

Which is cheaper Uber or Lyft? ›

Uber can be less expensive than Lyft for the average journey—research suggests that Uber is the cheaper company, with the average trip costing $20 compared with the $27 you would spend for an average Lyft trip. Also, Uber can be used around the world, whereas Lyft is only available in the U.S. and Canada.

Can you put stuff in the trunk of an Uber? ›

Disclosure: *Packages sent using Uber Connect must total less than $100 in value per trip, be less than 30 pounds, and fit comfortably in the trunk of a midsize vehicle.

Can Uber carry luggage? ›

The good news is that you can absolutely take luggage in your Uber. In fact, for many trips (such as to the airport), your driver will probably expect you to have a bag or two. However, that doesn't mean that you can take all your friends and all your things on an Uber trip. The vehicles have limited space, after all.

Can I carry small furniture in Uber? ›

Yes, you can use Uber to move furniture! In fact, many people use the app to request furniture delivery services. While Uber does not have its own furniture delivery service, it does allow you to order an Uber XL and sometimes the Uber XL driver will be willing to help .

What is the Uber Eats controversy? ›

The company is facing a lawsuit for antitrust price manipulation, from forcing restaurants to charge the same price for delivery as for dine-in if the restaurant wants to be listed on UberEats' app, along with charging fees of 13–40% of revenue.

Can someone else ride with me while driving for Uber Eats? ›

Friends and family members can drive with you while you're delivering for Uber Eats, but make sure that having passengers with you doesn't interfere with your deliveries or your safety. Professional behavior is always an Uber Eats requirement.

What if Uber Eats can t find a driver? ›

If Uber Eats cannot find a delivery driver for your order at all, the order will be canceled, and your payment will be refunded straight to your card. This process ensures that no one will be waiting too long for their order, and there won't be any lingering orders sticking around on the app.

Why are cities banning Uber? ›

Often the case for banning comes down to the fact that Uber operates under an unfair advantage due to the lack of adhering to the same laws and regulations as other car services.

Why is Uber leaving California? ›

Their entire business model was based upon independent contracting, so providing full employee benefits is prohibitively expensive. Neither Uber nor Lyft actually make a profit, and converting their workforce to full-time employees would cost approximately $3,625 per driver in California.

Why has Uber got worse? ›

“Everything has gone up,” he says today. “Fuel has gone up, insurance has gone up and licensing fees have gone up, while more and more fares have gone down.” Zamir says that because of this, Uber drivers have become a lot more selective about which fares they take on.

What is Uber's long term strategy? ›

Uber is committing to becoming a fully electric, zero-emission platform by 2040, with 100% of rides taking place in zero-emission vehicles, on public transit, or with micromobility. It is our responsibility as the largest mobility platform in the world to more aggressively tackle the challenge of climate change.

Is Uber changing business model? ›

Uber's business model has turned out to be so successful and popular that it has fuelled a new startup economy, the “on-demand economy”. Having a deeper understanding of Uber's on-demand business model can play a pivotal role in modeling your own on-demand startup business idea.

What company is the same as Uber? ›

Uber's alternatives and competitors. See how Uber compares to similar products. Uber's top competitors include Blacklane, Getaround, and Devour.

Do Uber drivers rate you before they see your tip? ›

Drivers can't see how a rider tipped them or rated them before they leave their rating, to prevent retaliation in the form of a poor review. The new feature is part of a “Privacy Center” that Uber has been working on in its app.

Do Uber drivers get 100 of tips? ›

Whether you give your driver cash or just tip through the app, they receive 100 percent of the tip; Uber, Lyft, Gett and Via don't take a cut. Generally, drivers are just happy to get a tip, Mr. Helling said, and many don't have a preference for cash versus tipping directly in the app.

How much do Uber Eats drivers make without tips? ›

The average income for Uber Eats delivery drivers in the United States is $15-$18 per hour. So if you make an average of $15 per hour and work 40 hours a week, you get a yearly salary of around $31,200.

Will Uber be profitable in the future? ›

They expect the company to post a final loss in 2023, before turning a profit of US$1.2b in 2024. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024?

Is Uber expected to grow? ›

On top of this, Uber is expected to report a massive increase in revenue for 2022, as it is expected to reach revenue of over $30 billion for the full year, representing an increase of over 80% YoY driven by easing lockdowns and an increase in travel.

Can you set up an Uber for the future? ›

Upon opening your Uber application, you'll see a small car and clock icon in the top right-hand corner of the screen. Once you've clicked on that, planning your ride in advance becomes as easy as 1-2-3! All you need to do is enter the time, date and address before clicking “Confirm”. Then you're all set!

How would Uber be improved? ›

The most obvious quick fixes are for Uber to raise prices, shrink driver pay, or acquire competitors to consolidate market power. But none of these initiatives address the root causes of Uber's flawed business model, and thus they cannot and will not be effective.

Why is Uber loss making? ›

Uber primarily attributed the loss to the falling value of its investments in financially strapped companies such as Singapore's VTC Grab, US self-driving vehicle start-up Aurora and Indian food delivery service Zomato.

Is Uber doing well financially? ›

The company is not profitable at this time and consensus earnings per share estimates for 2022 are for a loss of $4.87. Losses are expected again next year with earnings per share projections of a loss of approximately 21 cents. Valuations for price-to-cash flow and enterprise value/Ebitda are at elevated levels.

What is Uber's target market? ›

The Uber target market of riders spans 16 to 65 year olds, although it is most popular among the younger age segment of 16 to 24 years. It includes both males and females.

What is the outlook for Uber 2022? ›

Outlook for Q4 2022

Gross Bookings to grow 23% to 27% YoY on a constant currency basis, with an expected 7 percentage point YoY currency headwind, translating to a range of $30.0 billion to $31.0 billion. Adjusted EBITDA of $600 million to $630 million.

Is Uber doing well 2022? ›

In a prepared statement, CEO Dara Khosrowshahi said Uber ended 2022 with its “strongest quarter ever,” capping off its “strongest year.” He said the pandemic's impact on the company's mobility business is “now well and truly behind us,” and that active drivers hit an all-time high during the quarter.

Can Uber be a side hustle? ›

On-demand jobs like Uber are a great side hustle option because they typically allow you to set your own hours that fit your lifestyle. So, if you are looking to make money on weekends only or are open any day of the week, these side hustle apps are for you!

Will Uber become self driving? ›

Uber said it plans on launching a fully driverless service with Motional in 2023. Users requesting a ride will be offered an autonomous vehicle if one is available before the trip is confirmed.

Why is Uber more successful? ›

While wait times vary, Uber customers typically spend far less time waiting than customers of traditional taxi services. Riders also have the option to share rides with others heading in the same direction through UberPool, the app's ride-sharing feature.


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