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UberEATS: Cloud Kitchens

Kapil Agrawal
Former Global Head of Pricing and Strategic Initiatives at Uber

Learning outcomes

  • How UberEATS can leverage the ride hailing business on the supply side
  • The impact of Cloud Kitchens on driving UberEATS margin

Executive Bio

Kapil Agrawal

Former Global Head of Pricing and Strategic Initiatives at Uber

Kapil joined Uber as the Global Head of Pricing & Strategic Initiatives in 2015 when the business was rapidly growing across developed but also emerging markets. He was responsible for formalising pricing structures across both UberX, UberPOOL and UberEats globally. Kapil left Uber after two years and joined Poshmark, the fast growing social commerce marketplace, as VP of Finance and Corporate Development where he has helped quadruple revenue at the business. Kapil has led $90m of capital raising for growth equity companies and has deep experience scaling marketplace businesses. Read more

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Interview Transcript

You mentioned how the supply can be used for both Eats and the ride-hailing business. Do you see a lot of drivers doing that, in using both services, for Uber? Do you think that’s an advantage over the other players?

I think there are a couple of factors here. Firstly, on the Uber X platform, the car needs to be in a specific condition. The car, in general, when I was in Uber, we were only allowing cars which were manufactured after 2000 or newer cars because, ultimately, the customer is sitting in the car and you need to give them a good experience. On the Eats platform, any kind of car could work. If it is an older car, you are only allowed to deliver on the Eats platform, but if it is a newer car, you have much more flexibility; you can do ride-sharing and you can also do the Eats platform.

The second factor is, in different markets, the supply could be different. For example, in a dense market, like London, New York, Chicago, etc. or in developing markets, such as Indo-Asia, your supply is totally different. You have many more bikes or motorbikes, who are delivering the Eats order. In an ideal world, if your car is new, and your market is much more driven by motor transportation then you can, potentially, see a lot of drivers driving on both the X platform and the Eats platform.

Then there is the element of choice. Some drivers like to have people in their car, whilst for some people, that is not their preference. However, there may be a few psychological things, as well, that could be taken into account. We do notice that, yes, there are people who driving on both the platforms.

What is the break-even number of trips, per hour, for the Eats business, roughly?

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