Uber Has A Huge Opportunity To Disrupt The Food Delivery Industry

Uber has been experimenting with a food delivery service called UberFRESH this week. It’s promising to deliver dinner from a few Los Angeles restaurants in under 10 minutes, and it launched a one-day promotion in various US cities to deliver lunch from local restaurants in the same amount of time.

Looking at the market for food takeout and delivery, it looks like there is still plenty of room for Uber. Based on estimates charted for us by BI Intelligence, Americans spend $US70 billion a year on food takeout and delivery, with $US9 billion of that total ordered online. And of those online orders, the combined portfolio of Grubhub and Seamless comprise less than 20% of the market (Grubhub and Seamless merged in August 2013).

With the remaining 81% of the market split between various small services, there’s no reason a giant international service with a ton of users, credit cards on file, and financial backing ($US2.7 billion raised so far) could make a giant imprint in the food delivery market.


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