Photo by Robert Anasch on Unsplash
October 7, 2024
Should Uber Be Delivering Everything?
Uber Technologies has announced a new partnership with Spirit Halloween, North America’s largest Halloween retailer, to enhance on-demand delivery options for customers in the United States and Canada. Through Uber Eats, Postmates, and the Uber app, consumers can now conveniently order a variety of Halloween costumes and seasonal decorations directly to their doorstep. This collaboration aims to streamline the shopping experience as Halloween approaches.
“The holiday season officially kicks off this time of year, and households across the country are looking to on-demand delivery to get what’s needed—now. That’s one of the reasons we’re most excited to bring Spirit Halloween to Uber Eats and our other Uber apps to make costumes and other Halloween must-haves a cinch. As a working mom I know how crucial that last minute face paint or mask can be on the morning of the school parade or the hour before trick-or-treating starts, and I’m thrilled we’ll be able to meet that demand at Uber.”
Beryl Sanders, Director of U.S. grocery & retail partnerships at Uber, via PR Newswire
Currently, Uber delivers almost “everything.”
Uber launched Uber Eats in 2014, according to Forbes, and in 2020, it added grocery delivery to its mix of services. Two years later, Uber Eats released a comical Super Bowl commercial to advertise the fact that customers can also have non-food items delivered.
This marked a significant expansion beyond food delivery. Initially focused on meals, the platform rapidly diversified its offerings to include grocery items, alcohol, convenience goods, flowers, and more. This growth reflects substantial investments in new verticals, which, at the time of the ad, resulted in nearly 3 million consumers ordering essentials beyond food each month, according to Uber.
Uber also released Uber Connect in 2020, which allows users to send packages via the Uber app by connecting them with a driver for delivery to a specified drop-off location. The service is designed for small to medium-sized packages, with a weight limit of 30 pounds for vehicle deliveries and 15 pounds for bike or scooter deliveries. Packages must be securely sealed, not exceed a value of $100, and comply with a list of prohibited items.
To initiate a delivery, users enter the destination, select “Connect,” and follow prompts to provide necessary details, including the recipient’s name and special instructions. While the service can accommodate multiple packages in a single trip, recipients must be ready to meet the driver at the designated pickup or drop-off point.
Moreover, Uber Flash is an extension of the Uber app that allows users to send items such as care packages, sold goods, or business documents from one location to another, offering drivers additional earning opportunities beyond standard trips. However, this service isn’t available in all locations. It is currently only available in certain countries, but Uber notes that the service is in a “period of expansion and will soon be available for other cities.”
Drivers who are eligible will receive an email and in-app invitation to review the terms and conditions, and upon acceptance, they can start accepting requests similar to those for UberX or Uber Eats. Deliveries require drivers to pick up items from the sender, confirm their identity, and notify recipients upon arrival. Items must be securely sealed, fit comfortably in the vehicle, and not contain prohibited items — if guidelines aren’t met, drivers can cancel the request.
On social media, users on Reddit have shared their experiences and thoughts on the matter. One driver explained how they were surprised when one of their package deliveries turned out to be dirty laundry. A reply from another driver explained how they already do weekly dry cleaning deliveries for one of their regular customers, while a different driver mentioned they probably have delivered drugs once or twice without knowing. Another driver shared how they only perform the Connect deliveries during slow days since they had to deliver two large chairs at one point, and one user stated that they would deliver anything as long as the pay was good.
In more recent news, Uber Technologies announced on Oct. 3 that it has entered a strategic partnership with Avride to incorporate the company’s delivery robots and autonomous vehicles into its services, starting with sidewalk delivery robots for Uber Eats in Austin and expanding to Dallas and Jersey City later this year. Avride’s expertise in developing both delivery robots and autonomous vehicles positions it uniquely, with commercial deliveries already underway in the U.S. and South Korea.
Discussion Questions
How do partnerships like the one between Uber and Spirit Halloween reshape retail strategies and influence customer loyalty during peak shopping seasons?
As on-demand delivery platforms diversify beyond food, what implications does this trend have for brick-and-mortar retailers regarding competition and inventory management?
What ethical considerations and logistical challenges should the retail industry anticipate with the integration of autonomous delivery solutions like those from Uber and Avride?
Poll
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David Spear
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Clay Parnell
President and Managing Partner
David Biernbaum
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Uber’s initial move into delivery was a bid to drive more volume through its ecosystem with a view to increasing efficiency and profitability. It makes sense as Uber’s network is designed to transport things from point A to point B – to a certain extent, it doesn’t really matter what is being transported. I’d say that Uber has succeeded in its initial ambition as delivery revenue has soared and profitability has improved over time – and it has done so with a still relatively low penetration of merchants in most markets. What Uber increasingly sees is further incremental revenue opportunities from membership programs and advertising.
I think there may be a typo in the headline: “anything” somehow got misspelled as “everything”; In both cases my answer is “no”.
Most anything that fits into a car and deliverable to the door, can, and should, be handled by Uber. All four parties win in this situation, the retailer, the consumer, the driver, and the brand. Exceptions might be alcohol and drugs, or any item or category with age restrictions.
The other part of the equation would be, how well is any given retailer able to hand off the purchased items to the driver? Not every retail is set up that way, but they certainly have motivation to be.
I do believe the drivers ought to have a choice for picking up or delivering certain types of items. For example, maybe one given driver prefers not to handle dirty laundry. I’m confident the app can disqualify drivers who have preferences one way or the other.
I have always thought that independent hardware stores should drive around neighborhoods on weekends selling Christmas decor the same way ice cream trucks sell Popsicles in the summer. When you think about it, this is almost what Uber is doing.
Every food delivery service that I use gives me the option to add things to my order from other restaurants or from stores. If it makes sense for Uber drivers to deliver additional items then I say why not? In some cases drivers are filling the role of personal assistant, picking up and delivering dry cleaning and office related materials. Who couldn’t use that kind of occasional help?
Uber delivering as much as they can is no different than Amazon selling as much as they can. They’re both trying to expand their market and their positioning, and catering to the (almost) instant gratification needs of an ever-impatient consumer.
Many consumers don’t seem to care where certain products are coming from as long as they can get them quickly and as cheaply as possible, and certainly Spirit Halloween products fit well in this category.
Yes, Uber should be delivering everything. Delivery is the core service which Uber offers, and it should be no different than USPS, UPS, or Fed-X, as well as the built in services of other companies like Amazon, Domino’s, etc. Carrying food, people, and products from one location to another should be spelled UBER.
Delivering people or packages from point A to B is a core competency of Uber and as long as they can find new channels and ecosystem partners to conduct business profitably, why not? Consumers will choose to reward them with their business if they find the services compelling. Testing the boundaries of these services is exactly what Uber ought to be doing.
I think we are a long way from Robots roaming the streets delivering things and in the shorter term the growth of at home delivery has already happened, especially in an economy where people (except perhaps those of us with Government Jobs) are feeling anxious about their prospective employment–take a look at the delivery fees!
Why not? Doesn’t really make a difference WHAT Uber is moving from here to there. Lot’s of upside to add additional merchants and makes sense.
A win for drivers. If there’s a lull in moving people, they can choose to move items as a way to maintain their hourly earnings. Drivers with larger payloads could start delivering drywall, other building materials and larger appliances to help out homeowners.