Uber says it delivered $1.2b to economy
A NEW report conducted by Uber estimates that the ridesharing giant contributed $1.2 billion to the New Zealand economy last year.
The San Franciscobased company said that represented 0.3% of the country’s GDP, and it produced an additional $1 billion in consumer surplus — $560 million from Uber Eats alone.
In the latest Uber Economic Impact Report, Uber claimed its Uber Eats platform alone had encouraged New Zealanders to support local restaurants to the tune of
$88 million in additional revenue, with a gross impact of $930 million for the overall New Zealand economy.
Dr Lindsay Neill, senior lecturer at Auckland University of Technology’s school of hospitality and tourism, said those numbers were believable given Uber’s dominant position in the market and within the restaurant business.
‘‘I am not surprised that they claim a contribution to the New Zealand economy that is substantial.
‘‘You’ve only got to look at the Covid situation, the convenience that Uber brings to people by way of food delivery, taxi services.
‘‘We’re all feeling a bit insecure — that hasn’t gone away — the restaurant industry has opened up, but there is still a reluctance for some people to dine out, so they could be still getting their restaurant meals homedelivered.
‘‘It’s about time and place and space, and I think Uber fills a wonderful need,’’ Dr Neill said.
He said controversy that surrounded the fees companies such as Uber charge for delivery was taken in users’ ‘‘stride’’.
‘‘It’s a bit of a doubleedged sword.
‘‘Food costs are rising, labour costs are rising — it’s a hugely competitive labour market, it’s very hard for restaurants and hospitality businesses to turn a profit and here is another expense to add to the list.
‘‘But we need to offset that and think of it in more holistic ways.
‘‘Consumers are prepared to pay more for convenience and if restaurants and hospitality businesses do their costing correctly, that can be immolated not only throughout Uber delivery but slightly offset by inhouse dining as well — a bit of creative accounting, perhaps,’’ he said.
Uber’s report, which looked at its impact across both its rides and Uber Eats marketplace, found that almost 70% of users said that they felt the app had encouraged them to order from restaurants they had never tried before.
Over 85% of Uber Eats users said food delivery apps had made it easier to discover new restaurants, and 52% said it had helped ‘‘improve their quality of life’’ when they weren’t allowed to eat out.
Dr Neill said the Covid19 pandemic had made it increasingly hard to be a successful hospitality business without using a delivery platform such as Uber, rival companies such as Menulog, or new market entrant Delivery Easy — and while restaurants may not be sold on the idea, it was what their customers wanted.
American food delivery firm
DoorDash expanded into New Zealand in June, joining market leader Uber, Menulog and a handful of locally owned and operated startups.
Dr Neill said growing competition within the space was good — and was recognition of ‘‘where the market was at’’.
He said having more players made it more price competitive, which was good for both consumers and businesses. —