24 October 2016
UberEats will be available across 10 US cities by the end of March. Photo: Uber
UberEats will be available across 10 US cities by the end of March. Photo: Uber

Uber prepares US meal delivery service

App-based transport service provider Uber Technologies Inc. is set to roll out a meal delivery service across 10 cities in the United States.

In the coming weeks, customers in such cities as Los Angeles, Chicago, New York and Austin, Texas, will be able to use a new, dedicated UberEats app to order from the menus of local restaurants and have their food quickly delivered by an Uber driver, a company spokeswoman told the Wall Street Journal.

Uber aims to diversify into the highly competitive food delivery business, where several venture-funded startups, including Postmates Inc. and DoorDash Inc., are already vying for customers.

Some of these companies have struggled to demonstrate they can operate profitably, making it difficult for them to raise new funding at high valuations and forcing them to slow hiring, the newspaper said.

UberEats takes off from a lunchtime-only service that Uber began offering in a dozen cities last year. It will tap into a network of more than a million drivers to deliver the food.

The app is expected to be launched in mobile app stores of Apple Inc. and Alphabet Inc.’s Google by the end of March.

The app has been available for over a month in Toronto, where Uber has tested an expanded meal delivery service with more than 100 local restaurants. Delivery time is about 30 to 40 minutes.

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