‘Slow’ Uber must do better in the grocery delivery space

Uber’s new grocery strategy isn’t enough, according to Brittain Ladd, a supply chain consultant and former Amazon executive.

In a LinkedIn post, Ladd wrote: “Whenever I read an article about Uber's grocery strategy, I feel like actor Lloyd Bridges in these scenes from the movie Airplane.”

Oskar Hjertonsson, Uber’s Global Head of Grocery and Retail and former CEO and Co-founder of Cornershop, said during a press conference that Uber is launching new features, and that these are the “most comprehensive update yet” for the firm’s grocery vertical.

The changes come as Uber is “betting in a huge way on grocery,” Hjertonsson said.

Meanwhile, Therese Lim, Uber’s Senior Director of New Verticals and Grocery Product, outlined the changes coming to the Eats app, noting that they aim to make grocery e-commerce on par with in-store shopping and as easy as restaurant ordering on Eats.

The new order scheduling feature allows customers to place orders regardless of whether a store is open, either for the next available delivery window or during another open time slot.

Lim noted this feature stemmed from customer feedback and aims to resolve constraints around when stores are open or have couriers available to shop.

Another new feature is live order tracking, which will allow customers to follow and interact with the person shopping the orders.

Ladd said: “Uber has been slow to ramp up its grocery delivery services since launching US grocery delivery on Eats in July 2020.”

“But the latest updates indicate the company doesn’t intend to sit back and watch Instacart and DoorDash dominate third-party service, according to an article in Grocery Dive.”

He added: “I have bad news for Dara Khosrowshahi. The new features that were announced by Uber Eats will not in any way, shape or form, materially impact sales at Instacart or DoorDash.”

“In fact, let me be crystal clear - if this is the best that Uber can do when it comes to grocery delivery, I strongly advise Khosrowshahi to shut down the programme, and divest the business.”

Ladd stated: “I bring a unique perspective to this topic having spent the last several years working as a consultant for the leading companies globally in this industry.”

“I know the technology, the operations, the pricing models, the sales, and the data related to customer behaviour from the leaders in the industry. Uber's strategy isn't enough. Not even close.”

Ladd believes that the only way Uber will become a major player in the third-party grocery delivery business is by doing one or more of the following:

1. Acquire Instacart. “Recent events in the economy have given Uber a gift. Instacart's valuation has dropped from $39 billion in 2021 to $14.7 billion today. Uber has a market cap of $45.77 billion. Uber can acquire Instacart.”

2. Partner with TikTok to reinvent the model for online grocery ordering and delivery.

Ladd concluded: “In essence, create a user experience that allows customers to bypass Instacart and DoorDash. This has incredible potential for Uber in many ways. Uber must do better. End of story.”

Sign up for the free RTIH retail tech newsletter here.

Featured