The US-based taxi aggregator Uber has launched its on-demand food delivery app UberEATS in India.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The company started its UberEATS app as a small delivery pilot project in Los Angeles in 2014 and since then it has expanded its footprint to 58 cities across the globe. "India will be a major step in our regional expansion, following the launch in Bangkok, Singapore, Tokyo, Hong Kong and Taipei," cited Uber in a press note published on its website on Monday.

UberEAT's launch in Japan. 

It launched UberEATS in Japan as way to look for new ways to enter a potentially massive market where its ride-hailing service has been blocked by regulation and opposition from taxi drivers.

With the government getting more stringent on taxi aggregators such as banning of surge pricing in certain cities to even the government planning to put in place high license fees for drivers, UberEATs may be another way for it to still operate in the market if rules get more tighter.

Another reason could be that it could eat into the food delivery market with its already huge fleet of cab network. Restaurants may also be willing to part with higher margins to the company.

However, it is one thing to provide transport to people but another to deliver food. It remains to be seen if the UberEATs or stays hungry a year later.