Uber Sees Faster-Than-Expected Growth in Grocery and Retail Delivery Business

Uber Technologies reportedly expects to increase its grocery and retail deliveries, with the annual run rate of that segment of its business reaching $12.5 billion in gross bookings by the end of the year.

The company made this projection as it has seen these non-restaurant deliveries grow faster than expected, Bloomberg reported Friday (Sept. 26), citing an Uber spokesperson.

Uber reported in May that the run rate it saw at that time was $10 billion, according to the report.

The company has added 1,000 new retailers to its delivery service since the beginning of the year and announced on Thursday (Sept. 25) that it will offer weekly discounts on select grocery items, according to the report.

In a press release announcing the new discounts, Uber said its new Fresh Days program will offer savings of up to 50% on select items, including fresh fruits, vegetables, meats and dairy.

“With grocery prices on the rise — and fruits and veggies driving much of the surge, sparking the term ‘veggie-flation’ —Uber Eats is doubling down to make fresh food delivery easier, more dependable, and above all — more affordable,” Susan Anderson, global head of delivery at Uber, said in the release.

Uber also announced in the release that the Uber Eats platform now offers new tools, giving users more control over their orders. Customers can choose how they would like unavailable items replaced and add or edit items in their order until the items are placed in a cart by the shopper. They can also receive photos of items from shoppers when the items are of lower quality, allowing them to approve or swap the items.

During an Aug. 7 earnings call, Uber CEO Dara Khosrowshahi said the company sees the next leg of expansion coming from persuading the users of its mobility app to use its delivery app, and vice versa, through tighter product integration and cross-promotions.

“We’ve already made great progress harnessing the unique power of our platform … but we’re just scratching the surface,” Khosrowshahi said.

Retailers that have joined Uber’s delivery platform this year include grocery chain Aldi, electronics retailer Best Buy, discount retailer Dollar Tree and pet supplies retailer Petco.