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Freedonia Market Research Blog Uber CEO: Delivery Has Moved From Luxury To Utility

Uber CEO: Delivery Has Moved From Luxury To Utility

by Freedonia Industry Studies

August 11, 2020

On August 6, Uber Technologies announced its quarterly earnings results. UberEats remains the bright spot for the company, seeing revenue doubled to $1.2 billion as Americans continue to stay at home despite changes in restaurant and other business operation across various states since April. This is in contrast to the ongoing sharp declines in the company's flagship ride-hailing unit, as fewer riders and drivers in the US returned to the platform despite improvements in other countries where COVID-19 outbreaks are currently more muted.

One thing moving the business ahead was noted by Uber CEO Dara Khosrowshahi, who said, “The COVID crisis has moved delivery from a luxury to a utility.”

As more people try delivery options, they integrate it into their daily life and choose to retain this convenience even after the time of necessity has past. For instance, before the pandemic, consumers were already getting used to having household goods and other items delivered to their doorstop by Amazon and Walmart. Now, large numbers have become accustomed to having groceries and prepared restaurant meals brought to their home as well.

According to The Freedonia Group’s National Online Consumer Survey conducted in May 2020, 30% of adults note that they are using restaurant delivery more because of the coronavirus pandemic and 51% note that they are using restaurant curbside pick-up options more.

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research in the packaging industry, including reports on Retail Bags and Global Foodservice Single-Use Products. Additional information is also available in food and beverage reports available from The Freedonia Group’s sister publisher Packaged Facts, including Food Carryout & Delivery, Food Carryout & Delivery: Special COVID-19 Consumer Insights, Food Market Outlook 2020: Home Cooking & Grocery Shopping in the Age of Coronavirus, and Beverage Market Outlook 2020: Grocery Shopping & Personal Consumption in the Coronavirus Era. Freedonia Custom Research is also available for questions requiring tailored market intelligence

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