Uber Eats and its Contribution to Business Sales: A Literature Review

Business sales
New business opportunities
Business diversification
Technology
Customer relationships
Thesis statement: “Uber Eats and how will it contribute to the increase of business sales.”
Chapter 2: Literature review
2.0 Overview
In this section, previous literatures regarding business sales have been reviewed that
allowed comparing and contrasting the views and opinions of different authors. This provided an
opportunity to develop an in-depth study with better understanding and in-sight regarding the
topic. In studying the benefits of Uber Eats, business innovations and business diversification has
also been studied that helped in determining the relationship with business sales maximization.
2.1 Conceptual framework
Figure 1: Conceptual framework
(Source: Created by Author)

2.2 Uber
Uber is an American multinational transportation network company that offers wide
range of services such as peer-to-peer ridesharing, bicycle sharing system and ride service
hailing. The company was founded in March 2009 in San Francisco and is currently operating in
785 metropolitan cities worldwide. Uber can be accessed by through websites and mobile
applications (Rogers 2015).
Figure 2: Uber World Map
(Source: Cramer and Krueger 2016)
The aforementioned image indicates that Uber is accessible around the world and the ride
sharing mobile app connects riders with drivers in just minutes and couple of clicks. The
business model used by Uber is pretty simple and is convenient ad highly affordable to get
around compared to traditional taxi cabs. The global market value of Uber is $72 billion since
the origin of the company. In the most recent quarter, it has been seen that Uber has generated
$12 billion in gross bookings (Cramer and Krueger 2016).

Figure 3: Number of rides by Uber
(Source: Chen, Mislove abd Wilson 2015)
From the above figure, it can be seen that the company has successfully completed 5
billion rides with over 3 million people driving for it. An average earning of an Uber driver is
$364 per month and it is estimated that 40 million rides per month is fulfilled by Uber. Uber has
established them as a prominent figure in sharing economy that has changed the face of the taxi
industry, as this provided various facilities to the riders compared to traditional taxi cabs.
Currently, an estimated 22,263 employees is working for Uber at the global platform (Chen,
Mislove abd Wilson 2015).

Figure 4: Competitors of Uber
(Source: Wallsten 2015)
Both the images presented above indicates that Uber has gained huge popularity
compared to traditional taxi cabs and others business organization with similar business models.
Therefore, it can be seen that Uber is still leading the pack of the ridesharing market and the
company is no way near pulling brakes around the world. Uber is growing continuously and
consistently growing and successfully outsmarting the competitors (Wallsten 2015).
2.3 Emergence of Uber Eats
After securing the feet in ride sharing app, Uber have ventured into the food delivery
business sector that led to the emergence and development of Uber Eats that has also been an
undeniable success. Uber Eats has been launched in 2014 that provided an opportunity for the
users to order foods from the local restaurants. By 2017 April, Uber Eats have partnered with
more than 46,000 restaurants around globally. Uber Eats service is available across 250 cities
around the globe. Reports suggest that the current bookings run rate for the application is $6
billion, as per May 2018 (Stonehem 2016).