How Uber Rush is set to challenge giants UPS and FedEx
In an attempt to expand its business even further, rideshare giant Uber’s latest creation Uber Rush will now bring items to you instead of the other way around.
Initially launched last year in New York as an experiment, Uber Rush allows users to hail a courier from the regular Uber app, then track the delivery all the way to your doorstep.
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With it now also up and running in Chicago and San Francisco, the latest invention allows customers to get what they want, when they want it.
In the United States, 20 per cent of all trips are moving things from point A to B. Although a lot of time and energy would be saved if every local business delivered, it’s just not logistically feasible.
Not only will this new service help consumers, it will help out businesses as well with its ability to order and track deliveries instantly, expand delivery zones and integrate with existing tools and platforms.
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Making it even more efficient is Uber Rush’s ability to pick up multiple packages from multiple locations, similar to UPS and FedEx. Although passengers and packages will ride separately for now, Uber Rush drivers will be trained on how to position themselves, how to handle package deliveries and how long to wait for deliveries.
In New York, deliveries can also be made on foot or by bicycle.
If Uber Rush is able to find a balance between efficiency, supply and demand, it could cause huge problems for companies specializing in deliveries. Uber has also partnered with online retail outlets such as Shopify to allow consumers to choose UberRush as a delivery option.
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When combining the two, customers will be able to receive their online orders within hours of making the purchase, increasing online shoppers’ urge to buy that much more inevitable.
Each Uber Rush delivery will cost the merchant between $5-7, as Uber will pay the delivery driver 75-80 percent of the fee and keep the remaining revenue. It’s a similar strategy used by on-demand delivery service Postmates, which claims a percentage of each sale.
Although having convenient delivery comes at a hefty price, Uber’s decision to turn Uber Rush into a legit business instead of an experiment shows the confidence the rideshare giant has in its latest invention.
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