Los Angeles — Uber’s restaurant delivery business has grown revenue to $1.5bn in just three years, the company disclosed in its initial public offering (IPO) filing on Thursday, dwarfing the revenue of its profitable, and already public, rival Grubhub. Uber also spelt out the struggle its food delivery business faces: "Cumulative payments to drivers for Uber Eats deliveries historically have exceeded the cumulative delivery fees paid by consumers," it said. Uber Eats, and its rivals DoorDash and Postmates — who are also candidates for IPOs — are offering discounts and incentives to diners and restaurants in a race to grab the biggest piece of online restaurant delivery sales that investment firm William Blair expects to grow to $62bn in 2022 from around $25bn today. Uber said its "take rate" — the percentage of revenue it keeps from each restaurant order — declined to 10 percent after it charged high-volume restaurant partners lower fees in competitive markets like the United States...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now