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Uber shuts down its underused UberRush delivery service



Photo: AP

Shyp recently closed on-demand parcel picking on the grounds that it has not reached critical mass for its explosive growth strategy, and one last point for business customers is too late. Now follows UberRush, Uber's dealer delivery service in New York, Chicago and San Francisco, and will soon be out of business.

TechCrunch reported on Friday that the NYC Rush team sent an email to customers informing them The service would be discontinued by the end of June 201

8, adding that while the company believes in "big brave bets," but has to move on to other applications of Uber technology. The site TechCrunch confirmed on June 30 was official:

"We will stop UberRUSH deliveries and terminate the services by the end of June," a Uber spokesperson told TechCrunch. "We are grateful for our partners and hope that the next three months will enable them to meet their delivery needs and we already apply many of the lessons we have learned together in more than 200 global markets in more than 100,000 restaurants. "

TechCrunch noted that the service had long since ceased to exist, which is generous considering its existence, it may have been ignored by many at all. In April 2017, Uber hired the courier company UberRush for restaurants and encouraged them to switch to their UberEats program. It was not a good omen for the already small Uber division, since Quartz reported at the time that former employees said that restaurants were the bulk of their business and that UberEats was simply more lucrative:

While Uber will likely continue to face supply restrictions from his Eat's push, the food delivery platform offers a more attractive value proposition than Rush did. With Eats, customers place their orders through Uber's app. The company charges a delivery charge ($ 5 in most cities), a 30% cut from the restaurant, and a 25% to 30% cut from the courier on each order, rather than rush-based fees.

In any case, the market for people willing to pay premium rates for someone to pick up their packages is apparently a fair bit smaller than the market for letting someone pick up their pizza.

This is hardly Uber's biggest news loss as the company continues to lose billions of dollars as part of a comprehensive growth strategy that hits a wall in some markets. The company recently rescued its Southeast Asian division and decided to sell it and its 600 million potential customers living in the region to competitor Grab, which has caught the attention of Singapore's competition authorities

[TechCrunch]


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