Uber Eats may be the largest food delivery service in the world, except China, but the convenience of having food delivered is costing the company millions.
In 2018 Uber Eats brought in $7.9 billion in gross bookings however the company ends up paying the drivers more than the service fees for food delivery.
Uber Eats ends up taking a hit on deliveries in order to service larger food chains like McDonald’s and the potential to grow Uber Eats consumers.
The company hopes with its IPO that they can raise $10 billion to help their bottom line but investors aren’t encouraged by a company that has seen a steady revenue loss and they worry about how they would make money.
How often do you use a food delivery service? Do you think Uber Eats will be a good investment?