The lockdowns of 2020 in many developed markets gave rise to couch commerce and an increase in engagement for food delivery services such as Uber Eats.
As a result, the online food ordering and delivery division of the Uber ride hailing giant experienced a positive spike in many metrics including an estimated 152% YoY increase in revenue.
For 2020, it is estimated that Uber Eats generated $4.8 bln in revenue, compared to just $1.9 bln in 2019. Uber Eats also more than doubled its gross bookings in 2020 which amounted to $30.2 bln compared to just $14.5 bln in 2019 and $7.9 mln in 2018.
As of March 2021, Uber Eats holds the second-highest share of the online food delivery market in the US at 22%, behind DoorDash that raised $3.37 bln in an IPO in December 2020.
Notably, Uber Eats share of the market increases closer to 30% with their recently completed purchase of Postmates which had an estimated 5% share of the market in the same reporting period.
Uber Eats has steadily increased its user base over the years and in 2020 it is estimated that the food delivery service app had 66 mln users compared to just 5 mln in 2016. Uber Eats also claim to have increased the number of cities that they operate in, to 6,000 in 2021, a staggering 500% increase from the 1000 cities it operated in 2020.
Many restaurants turned to the food delivery app as dine-in options were forbidden in many parts of the world. As a result, in 2020 Uber Eats supported over 600,000 restaurants compared to just 220,000 in 2019, for a 173% YoY increase.
“Uber Eats was integral to Uber’s business during the pandemic when the ride-sharing industry was essentially put on hold due to lockdowns across the globe,” explained Rex Pascual, Editor at Trading Platforms.
“Uber’s recent purchase of Uber Eats’s competition, Postmates, is sure to strengthen Uber’s hold on the online food delivery service market in the US and may finally lead the food delivery service app to profitability.”