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The Street
The Street
Business
Colette Bennett

Uber Joins The Race For Nationwide Food Shipping

App-based food delivery services have been on the scene for some time now, and it's hard to imagine our lives without them.

GrubHub was first to the scene in 2004. Tired of ruffling through paper menus to order takeout, Chicago-based software engineers Matt Maloney and Mike Evans devised the idea of a company that could simplify the process of ordering food.

Although GrubHub didn't start offering services to all 50 U.S. States until 2015, this gave it a major head start in what is now an industry worth $22.4 billion -- and growing.

However, even as DoorDash (DASH) and Uber Eats (UBER) joined the app delivery market in 2013 and 2014 respectively, there was still a unique gap waiting to be filled. 

That was an easy way to order classic favorites from U.S. restaurants with cult status and have them shipped. But Goldbelly was already percolating in 2013, greatly aided by a $3 million seed funding round led by Intel Capital, and soon enough people could get food fixes that they once had to hop on an airplane to satisfy.

That led to a 300% growth in 2020 as the world sat at home, wishing they could go to a favorite restaurant and eat something that would make them feel better about their pandemic fears. 

Soon enough, DoorDash climbed on board too, launching its own nationwide delivery service in November 2021.

And now, Uber Eats is the latest to join the fray.

Uber Eats

Uber Eats Now Offers Nationwide Delivery

Uber Eats announced more than 15 merchants that it offers nationwide delivery from to start, such as San Francisco cookie empire Stirred Not Shaken, New York deli favorite Sarge's, and Miami-based Doggi's Arepa Bar.

While New York, Miami, and Los Angeles are the first cities available, Uber promises that more are on the way soon.

To place an order, app users simply need to open the Uber Eats app and scroll down to the section that says "Free nationwide shipping."

While the FedEx shipping estimate is 5-7 days, a message in the app says the "arrival date for your order is an estimate, not a guarantee." The restaurants are responsible for all logistics and tracking information and will email customers directly to confirm their orders.

Uber’s head of U.S. and Canada merchant operations Yadavan Mahendraraj says that the company's aim is to be the partner of choice for merchants, as reported by Supply Chain Dive.

"What we’re there to provide for them is omnichannel solutions — any way your eaters want to buy from you, we’re here for it," Mahendraraj said during an interview in May at the National Restaurant Association Show.

This is only one slice of Uber Eats' recent expansions for its food services. The company also announced in May that it would partner with stadiums so customers can avoid long concessions lines, instead waiting in their seats to get a notification to go pick up their food when it's ready.

Self-driving vehicles and robot delivery are also being tested in two pilot programs in Los Angeles.

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