by 👨💻 Adam Yardley
Uber, the taxi-hailing app which has grown in popularity with smartphone users over the years, has had something of a mixed 18 months or so. The firm had recently been hit not only with claims of a controversial workplace culture, but allegations of poor standards when it came to vetting drivers for their service. The fallout saw the installation of a new CEO, and a number of court cases open and close across the world. Italy still isn’t in favor of the app at all – while the firm has provisionally won an appeal against London transport executives who originally banned the app outright.
Now, it seems, Uber is on a mission to remain on the straight and narrow, and even to start expanding. Before the flurry of controversy that led the name to the headlines in recent history, the company was trialling various different types of delivery service – their UberEATS service has been growing for some time, too, where users can request that Uber drivers deliver fast food and restaurant cuisine to their doors. Recently, it’s emerged that there are discussions taking place with regard to Uber taking over popular delivery service Deliveroo, at least according to Bloomberg and their sources.
▶ Uber Said to Be in Talks to Buy Europe's Deliveroo
At the time of writing, neither Uber nor Deliveroo have been obliged to offer a statement confirming nor denying the news, though if reports are to be believed, it may be a multi-billion dollar acquisition which will effectively swallow Deliveroo into the Uber brand. For territories such as the UK, the news has led to a dip in market value for local delivery branding – particularly Just Eat, which is seen as a huge market leader in home food delivery in Britain, assuming up to a third in share.
▶ Uber could buy Deliveroo food courier service
Analysts and experts feel that an Uber-Deliveroo hybrid could be enough to allow them to dominate food delivery as a whole. Edison Investment Research’s Paul Hickman, quoted by the BBC, feels that the crucial difference between an Uber-Deliveroo model and Just Eat’s current setup could make all the difference. “Uber has a comprehensive app-driven distribution system and an international reputation, while Deliveroo’s business model encompasses ownership of the delivery function, unlike Just Eat which relies on restaurants’’ own delivery drivers.”
Is there any truth to claims regarding an acquisition? Who’s to say – but it could make all the difference for home delivery in the very near future.