Home Blog Home Business Model Study The New Wave in the Online Food Delivery Business – Uber Eats

The New Wave in the Online Food Delivery Business – Uber Eats

by Sherine Mariam

The public’s favourite Uber Eats is among the most trending names in the food delivery industry. Emerging from its parent company, Uber, the Uber Eats was founded in August 2014. Creating a buzz and revolutionary concept giving rise to the on-demand market and uberization, Uber Eats was greatly welcome by the public from its day one of operation.

Uber Eats Business Logo

The Journey to Uber Eats

Founded in 2009, Uber introduced its new business extension into the food industry with UberFRESH in Santa Monica, California. Uber FRESH was later renamed to Uber Eats in 2015 and released with a separate application for ordering food online. It made its debut in Chicago, Los Angeles and New York letting the public and the Uber riders to enjoy the savouring foods from their favourite restaurants to reach to be delivered to them. By the year 2018, Uber Eats finally had its services extended to a large number of 200 cities across 20 countries.

During the timeline of the history of Uber, they had an initial program of delivering ice cream with the on-demand requests by the riders across seven cities in the United States in 2012. The successful accomplishment of campaigns such as this being experimented across the major cities in the world led to the final introduction of the Uber Eats on-demand online food delivery application. Among the exciting services offered from Uber, is the food delivery using drones that will be introduced soon in 2019.

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Working of the Uber Eats Food Delivery Business Model

Uber Eats advocates its services to be the easiest mode for getting your favourite food delivered at your doorstep. The business model can be seen as a 3-sided food triangle business model that comprises of the customers, drivers or delivery patterns, restaurants or restaurant partners. The revenue of Uber Eats is a joined collaboration of the three major transactions such as Business to Business (B2B), Business to Partner (B2P) and Business to Consumer (B2C). Let us look into the three tiers of the Uber Eats business model.


The customers constitute the major part of the success of the Uber Eats business model. Customers are provided with a fleet of features by this online food order and delivery application. The order details, including the quantity, distance-based dynamic delivery pricing, an extensive array of discounts, coupons and offers and tax details provide a great amount of transparency leading to earning the trust of the customers.

Customers are also provided with the freedom to provide feedback on both the restaurants and the drivers to analyse and improve the services extended by Uber Eats and the restaurants. Customers also get a chance to tip the delivery of persons through the app that will serve a great way of encouraging the drivers to perform better.

online food delivery app

Restaurant Partners

Restaurants that would like to extend their brick-and-mortar business online, partnering with the online food order and delivery platforms like Uber ats is one good option. Restaurants will have to pay a certain fixed percentage of commission to Uber Eats to enrol their restaurant business and exclusive menu on Uber Eats.

This will also serve these restaurants especially the newcomers to improve on their menu, flavours, tastes, packaging and other constraints through the reviews, feedbacks and monitoring the number of orders and total income received. There are provisions from the restaurant owners or representatives to customize the menu as per availability and adding new dishes and prices as per requirement following the rules and regulations of the Uber Eats policy.

Delivery Partners or Drivers

Uber Eats drivers are simply not just delivery persons but act as a delivery partner who earns profit from the deliveries they complete properly. The drivers also get extra incomes and gratuity based on the tips and feedback of the customers on their services extended through the application. The driver model is similar to that of the crowdsourced model where deliveries need to take place as soon as possible on-demand or request of the customer or order placed. The drivers receive details regarding the order, pricing, location and the person who placed the order to rightly deliver the food to the destination.

online food delivery services

The Uber Eats proposes on a unique value proposition adding to the unique selling point of the business.

An assurance on fast deliveries

Uber Eats ensure fast deliver the food within a described time along with the restaurant’s name. Mostly it is delivered within 30 minutes from the time of placing the order.

No restriction on minimum order

All you need is ice cream, Uber Eats will get it delivered to you. There is no standard cart value decided to place an order.

Customer Base and Global brand presence

Customers are a valuable asset to every business. With the brand name, ‘Uber’ is a commonly used brand across the globe for cab services and food delivery services. This allows the business to serve as a better platform for restaurants to partner with Uber Eats.

A top-class algorithm

The aggregate business model of ordering food online and delivery tracking application, Uber Eats has created a new wave in the food industry and its applications with mobile technology.

As discussed in the article, creating an on-demand business is in trend and one of the best startup options. If you are looking into investing in a similar online food order and delivery platform, make sure to include such features along with the basic requirements to become the next big name in the industry!

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