Uber to expand in meal delivery

Uber Technologies Inc.’ s hard- charging strategy and breakneck fundraising isn’t just scaring the taxi industry.

The ride- hailing pioneer is also starting to rattle the food- delivery business, an industry that raised a record $ 5.7 billion in venture capital globally last year compared with Uber’s $ 5- billion haul.

U ber announced Tuesday an expansion of its meal-delivery service in Los Angeles and other cities. The roll out comes as a smaller food- delivery competitor, Berkeleybased SpoonRocket in Berkeley, said it would shut down because of increasing competition and difficulties raising capital.

Many Uber drivers deliver meals along the same routes on which they pick up passengers, meaning they could generate more revenue per hour than a driver working solely for a stand-alone food delivery company. SpoonRocket, founded in 2013 and backed by about $ 13 million in venture capital, used in- house chefs to cook meals delivered to customers’ doorsteps for as much as $ 15. The service had been available in San Francisco and Seattle.

Uber’s strategy differs. It delivers meals from restaurants, adding a $ 5 delivery fee to users who must come to the curb to pick up their order. The service is now available in central Los Angeles through a new app, UberEats. About 100 restaurants’ menus are available, including Hummus Bar Express and Benny’s Tacos.

UberEats joins its existing food delivery option, Instant, which offers a smaller menu of meals prepared prior to peak times and stored in drivers’ cars. They can be had for a delivery fee of $ 3 or less, in 10 minutes or less.