Currently operating in 14 locations in Europe’s biggest economy, Uber Technologies Inc. wants to expand its food delivery service in Germany to around 70 cities by the end of this year, up from the current total of 14.
Uber’s regional general manager for delivery in Europe, the Middle East, and Africa, Eve Henrikson, said that the investment was made because of “a great deal of demand.”
She remarked that the courage to strive and develop comes from this in an interview.
The German meal delivery industry was formerly controlled by Just Eat Takeaway.com NV, which went out of business in 2014. The epidemic provided companies like Uber and DoorDash Inc. to expand their local operations. At the same time, Berlin-based Delivery Hero SE announced in December that it was leaving the country.
Henrikson said that the Uber Eats business model had the benefit of providing businesses with a network of couriers, regardless of whether they already had a fleet of vehicles on the road. Just Eat relies on the fact that a location has its riders.
In recent months, food delivery stocks have plummeted as investors move their attention away from fast-growing technological businesses and toward profit. Uber’s delivery business fared better than others during the selloff. It generated adjusted earnings for the first time in the fourth quarter, fueled in part by its European operation, which has more than tripled in size since the outbreak began.
The San Francisco-based firm has also made investments in new business sectors in Europe, including collaborating with the French supermarket giant Carrefour SA to provide speedy delivery in Paris, which began in October last year and is expected to expand. According to Henrikson, the service is currently available in nine locations throughout France.
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