Uber made its delivery system ‘Uber Eats’ announcement during their conference called “Uber Elevate”. The presentation consisted of a video where the Uber drone took a McDonalds order. For the products, Uber had designed a special box where the BigMac and fries were placed and then it took off to a designated location. In the location, an Uber driver picked up the package and delivered it to the customer.
Needless to say, that Uber is working on a different type of a delivery system.
If somebody says that my food is going to be delivered by drones, I would most certainly think that the order will be delivered by the drone to my doorstep. However, Uber has come up with a slightly different plan. Their long-term plan is to make the drone pick up the order. Then land on a car, by using QR codes, which is led by a traditional Uber driver, who finishes the delivery, respectively.
In addition to this, the company is also working with the Federal Aviation Administration. That was my first thought – what the air traffic is going to look like in San Diego when this service launches. Hundreds of drones flying around. This definitely needs to be coordinated by the Aviation Administration.
Fast, Cheap, and Can Deliver Ice Creams
First off, the price. Uber says that they will begin the service with a consistent pricing that can lead up to $8.50. That fits into the average price that US residents pay for their food delivery. This means that people will definitely try out this new option by Uber as soon as it goes live.
Also, Uber adds that they have been experimenting with ice cream delivery as well, not just McDonalds burgers and fast food in general. This gives Uber a great advantage over other delivery operators, as it will be possible to deliver cold food as well.
Additionally, Uber says that the main advantage of drone food delivery is time. The average delivery 1.5 miles away can take up to 21 minutes for a traditional Uber driver, however, with Drones, the delivery can be made in about 7 minutes.
Uber has big plans for the future. The company plans to launch commercial services in 2023 all across Los Angeles, Dallas Fort Worth, and a secret yet-to-be-announced international city. Could it be London?
In terms of Uber stock price movement, this announcement hasn’t left a big mark. In the past couple of days, the price of one Uber stock has actually fallen from $45 to $42 and now is going sideways in that area. Overall, at the beginning of June, Uber stock has increased in price rising from $39 to $42.