1 in 3 Uber Eats orders come from subscribers

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As delivery companies compete for consumer money, major players are leveraging their subscription and membership programs to become one-stop shops for restaurant orders.

Uber, for its part, sees nearly a third of its delivery orders come from members of its paid membership program Uber One, the successor to its Eats Pass delivery subscription, which offers discounts on food orders and drinks and free fulfillment, among other perks and perks for rides and delivery, for a set monthly or yearly cost.

“Around 23% of our overall gross bookings come from [Uber One] members, [and] it’s 32% for delivery,” Uber CEO Dara Khosrowshahi told analysts in a phone call Tuesday, Aug. 2, discussing the company’s second-quarter results.

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The membership program has the benefit of not only retaining Uber Eats in the face of fierce competition from aggregators such as DoorDash and Grubhub, but also driving consumers to adopt other Uber services, a key goal of the program. business, offering perks and discounts across verticals.

“Uber Eats customers who also order from new verticals tend to stay with us, tend to have higher frequency,” Khosrowshahi said. “And that’s really part of the power of the platform that we have. If you ride with us, if you eat with us, if you drink with us, if you order groceries with us, we become a daily part of your life.

This cross-vertical approach sets Uber’s membership program apart from comparable offerings from competitors, such as DoorDash’s DashPass or Grubhub’s Grubhub+, which cost the same amount per month without offering mobility benefits or discounts.

Certainly, there is a demand for food ordering subscriptions. About 4 in 10 consumers are open to restaurant subscription services, according to data from the February/March edition of PYMNTS’ Digital Divide study, “Digital Divide: Restaurant Subscribers And Loyalty Programs, created in collaboration with Paytronix . Additionally, the study, which is based on a survey of more than 2,000 U.S. consumers, found that subscriptions can be a useful way to reach consumers with cash to spare, as subscribers to restaurants are more likely to earn more than $100,000 per year than non-subscribers. .

See also: Report: Four in 10 consumers are open to restaurant subscription services

Additionally, research from the May edition of PYMNTS’ Subscription Commerce Conversion Index, created in collaboration with subscription-based e-commerce platform sticky.io, which draws inspiration from a census-balanced survey surveying more than 1,900 American adults earlier this year found that 56% of consumers would be interested in a grocery subscription if product prices were lower.

Read more: Inflation multiplies by 10 the number of consumers reassessing the value of the subscription

Notably, despite whispers that inflation would lead to a decline in Uber’s delivery business as consumers opt for more cost-effective food options, company executives have argued that hasn’t been a problem. Uber chief financial officer Nelson Chai said there have been “more spikes and spikes” related to ongoing COVID-19 waves than to inflation.

Related News: Inflation-hammered food delivery set to dent Uber’s revenue

Moreover, Khosrowshahi argued that inflation had actually boosted capacity.

“To some extent we might see evidence where it helps us,” he said. “Over 70% of drivers say inflation played a role in their decision to go to the platform.”

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NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS HAVING HIGH DEMAND FOR SUPER APPS

About: Results from PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed responses from 9,904 consumers in Australia, Germany, UK and USA. and showed strong demand for one super multi-functional app rather than using dozens of individual apps.

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