Ryan Williams
Jeremy Julian

Should the Food Industry Worry About UberEats?

October 4, 2017

Today we are tackling a force that has been bubbling under the surface for more than a year now: UberEats. Will this delivery service destroy fine-dining, fast-casual and the food industry in it’s entirety?

 

We say no.

 

The industry needs to understand this powerhouse and use it’s greatest advantage: customer reach. Below, we will break down why we think restaurants should join on board and offer their food to millions of hungry users.

 

The Simple Truth

UberEats is effective because it makes food from popular restaurants more available and more accessible. In addition to the market dynamics, however, there are three key elements of UberEats that enhance its stickiness.

 

  1. Food

This seems obvious. UberEats’ sells food, which means customers are encouraged to think of the service every time they’re hungry. This means breakfast, lunch and dinner. Realistically, that coincides with more than three times a day. Each time represents a mental prompt for customers to think of UberEats. Therefore, each time solidifies the brand’s awareness in consumer minds. This frequency is powerful because it leads to subconscious conditioning.

 

  1. Brand

UberEats is associated with Uber. And if you didn’t know who or what Uber is, it is a $68 billion global startup that is recognized as providing premium on-demand driving services. Through the psychological trigger known as the Halo Effect, this increases the perceived credibility of the brand’s food delivering spin-off. This means the positive qualities of Uber rubs off on UberEats. This means that consumers who frequently use Uber or have a positive perception of Uber’s services, are more inclined to view UberEats positively. In simple terms: if you use and like Uber, you are more likely to use UberEats.

 

  1. Restaurant selection

Food on demand is only appealing if the food is what customers actually demand. So, the more popular restaurants or local favorites, the more users! This leverages the power of social proof by increasing the platform’s perceived value. When a platform includes the city’s most popular and well-acclaimed restaurants, the platform will benefit from a similarly positive subconscious evaluation from customers.

 

Ultimately, it is your decision whether to offer food on UberEats. Based on what we stated above, we highly suggest doing it. This of this way: if all of your tables are full, you cannot feed anymore people. You have a bottleneck. However, with UberEats, you can continually make money without the needs for the table. More customers will be fed and happy and you will make money. That sounds like a win-win to us.

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