Challenges on the menu as UberEats plans expansion
Food delivery service UberEats may face logistical challenges as it expands in New Zealand.
The service, which is run using Uber delivery drivers, launched in Auckland in March.
The fee charged for each delivery varies, but is often about $6 in the central city.
It was revealed this week that McDonald’s Greenlane was joining the app, delivering to locations within 10 minutes’ drive.
The fast food chain said other restaurants would follow.
‘‘By partnering with UberEats, we’re able to extend the availability of McDelivery, providing our customers with food they love and new levels of convenience,’’ said Dave Howse, McDonald’s New Zealand managing director.
UberEats also said it was expanding into Auckland’s North Shore.
But Arvind Tripathi, of the University of Auckland business school, said there were logistical problems for UberEats to overcome. Running a delivery service required the co-ordination of more parties, which could become challenging, he said.
‘‘They’ve probably got quite a few things in play here.’’
He said, to get the most out of the delivery fee they received, drivers would try to pick up more than one each run.
But that meant they had to manage timing issues and coordinate a number of locations.
‘‘They have to wait, find parking, all kinds of things. It’s not as seamless when you add multiple deliveries – it becomes very, very challenging.’’
Some restaurants are believed to be reluctant to join the service because of the cut Uber takes from each order, which is reported to be up to 30 per cent. UberEats did not confirm this.
Sommer Kapitan, senior lecturer of marketing at AUT University, said her students reported using the service a couple of times a week, when they could split an order with others.
She said New Zealanders were sometimes reluctant to spend money on things that they thought they could do themselves.
She said UberEats might just need more time to find its foothold in the New Zealand market.
A spokesman said UberEats was pleased with progress in Auckland, where food was usually delivered within 30 minutes.
There are now 190 restaurants available on the platform, from 70 when it launched.