Uber Enters India’s Quick Delivery Market with Store Pickup Service

Preeti Bali / 10:35 am / May 10, 2024

This move marks Uber’s entry into the country’s rapidly growing quick-commerce segment, currently dominated by venture capital-backed startups like Zepto, Swiggy Instamart, and Zomato-owned Blinkit.

Initial Launch Focuses on Delivery with Direct Store Payments

According to a report in the Economic Times, Uber’s new service is currently available in nine Indian cities: Delhi-NCR, Bengaluru, Hyderabad, Jaipur, Chennai, Lucknow, Kolkata, Guwahati, and Ludhiana. Deliveries are handled using two-wheelers to ensure fast and efficient service.

In the initial phase, customers will be responsible for making payments directly to the stores upon receiving their orders. However, Uber has plans to introduce a future option where they will handle payments on behalf of the retailers, streamlining the process for users.

New Service Revealed Through App Update

While Uber has yet to make an official announcement regarding the launch, a new “store pickup” option has quietly appeared on the company’s app in India. This addition indicates the company’s foray into the quick-commerce space.

Uber’s Existing Delivery Network Paves the Way

It’s important to note that Uber already offers package pick-up and drop-off services in various Indian cities, also utilizing two-wheelers for deliveries. This existing infrastructure likely played a role in Uber’s decision to expand into the quick-commerce market.

Uber’s Recent Financial Performance

This news comes amidst Uber reporting a surprising net loss of $654 million for the first quarter of 2024, primarily due to legal settlements. This figure fell short of analyst expectations, who had predicted a profit of $474 million according to The Wall Street Journal.

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