Uber testing new super app to integrate food, ride-hailing platforms

An UberEATS food delivery courier stands in front of his bike in London, Britain September 7, 2016. Picture taken September 7, 2016. To match FOOD-DELIVERY/ REUTERS/Neil Hall

After ending merger talks with its rival Swiggy in food delivery space, Uber is now experimenting with a new super-app interface in India, with an aim to integrate its food delivery and ride-hailing platforms.

According to a report in The Economic Times, the new app will give customers an option to pick Rides or Eats with equal visibility and will help direct rides customers to order food. The combined subscription service will further help in retention of both the businesses and lowering customer acquisition costs, the report added.

Uber is expected to launch the new app by early next year.

The food delivery business in India is currently dominated by Swiggy and Zomato, both of which have raised massive funding to date. Naspers-backed Swiggy was in talks with Uber earlier this year to buy the latter’s food delivery business, UberEats, in India. Uber was reportedly also in talks with Zomato and Amazon for the same deal.

According to December 2018 Forrester data, Swiggy delivered around 8,00,000 orders a day while Zomato came a close second at 6,50,000. Uber Eats lagged behind at 1,50,000 orders per day. Meanwhile, Amazon also plans to launch food delivery service in India.

The online food ordering market in the country is pegged to grow over 16% year-on-year to touch $17.02 billion by 2023, according to Market Research Future.