Uber Eats has appetite for more
Seven more New Zealand cities will get the takeaway food delivery service Uber Eats this year.
From April, Uber Eats will operate in Palmerston North, Napier, Hastings and Rotorua, and will be rolled out to more locations later in the year, two of which will be in the South Island.
It already operates in Auckland, Hamilton, Tauranga, Wellington, Christchurch and Dunedin. The launch follows Uber’s announcement late last year that its ride-sharing business was moving into Rotorua, Taupo, Napier and Hastings, New Plymouth, Palmerston North and Nelson. Elisa Janiec, head of Uber in New Zealand and regional Australia, said Uber Eats’ move into smaller cities would be phased in.
‘‘Rather than roll out in all cities at once, we will focus on making sure we get the experience right in our first cities before announcing the next locations.’’
She hinted there were other new services coming to New Zealand. Overseas, Uber is currently testing a grocery delivery service in Melbourne and has taken a majority share in Latin American grocery delivery startup Cornerstore. Janiec said some restaurants would also offer a pick-up service, which enabled users to get ahead of the queues.
Uber launched its ride-sharing app in New Zealand in 2014, disrupting the taxi industry with competitive fares. It now operates in 13 locations and by the end of the year, the food delivery business will as well.
The United States-based company also launched its shared electric bike Jump in Auckland this month, and Jump e-scooters in January after testing the e-scooters in Wellington last year.
One of the benefits of Uber Eats is that it gives smaller restaurants access to a delivery service they probably could not afford by themselves.
However, like the taxi industry with Uber, the restaurant industry has not universally embraced Uber Eats. The Restaurant Association says members are vulnerable to slow deliveries and driver errors, in an age where customer ratings are all important.
Association chief executive Marisa Bidois said last year that Uber Eats’ high commission rates were also a real concern.
‘‘Most of our members are not seeing any profits from their Uber business but feel there is currently no viable alternative.’’