UberEats, the food delivery arm of the on-demand car app, is launching in India today.
The company is bringing its food delivery service to Mumbai first, before launching in five other cities throughout the year. It will be taking on the other established services in the country, including Zomato and foodpanda.
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The startup’s head of UberEats in India, Bhavik Rathod, said in a statement:
“Mumbai is home to a booming food industry with a vibrant food culture offering both global and local cuisines. The introduction of UberEats in India, with Mumbai is the first city, is a major step in our global expansion and showcases our commitment to the region.”
UberEats launched less than three years ago and is now available in 71 cities across the globe, and has partnerships with more than 40,000 restaurants. In the UK alone, it is aiming to expand to more than 40 towns and cities in 2017, including Edinburgh, Leeds and Liverpool.
The food delivery market is currently undergoing massive growth. According to research by Morgan Stanley, the food delivery market, which is currently worth around $30bn, could be worth around $210bn over the next few years.
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By GlobalDataCurrently, online sales are mainly made up by pizza companies. For the main pizza vendors, Pizza Hut, Domino’s and Papa Johns, 50 percent of their sales come from online orders, despite the fact pizza deliveries actually shrank by over 10 percent over the past few years.
Morgan Stanley believes that restaurants could completely shift the share of food ordered for delivery, thanks to designated services such as UberEats, Deliveroo and Amazon Restaurants. As well, other established players want to get a slice of the action, including the likes of McDonald’s which will be launching its own delivery service in the US and UK in order to reignite sales.
In addition, JustEat is riding high on the growth of the food delivery market. In the first quarter of 2017, the company reported sales rose 46 percent, to £118.9m, with order numbers rising by a quarter on a like-for-like basis to 39m. The company international orders rose 15m, up from 10.9m announced in the first quarter of 2016.
