Source : THE AGE NEWS
New York: Dine-in discounts encouraging people to catch an Uber to a nearby restaurant are part of a suite of incoming features from the rideshare and food delivery giant designed to keep cost-conscious users addicted to its app.
Sydney will be the first market to test and trial Dine Out, a partnership with OpenTable that offers in-person restaurant deals and allows customers to book a reservation on Uber’s app.
Sydney will be the first market to roll out Dine Out, a new Uber Eats feature that offers restaurant discounts.Credit: Bloomberg via Getty Images
While catching an Uber to the restaurant is optional, the $US189 billion ($294 billion) transport behemoth is pitching this and a number of other features, such as price locking and route sharing, to ramp up daily Uber use and keep customers embedded in the network.
Chief product officer Sachin Kansal said Uber was aiming to build loyalty by broadening choices that include pick-up and delivery for restaurant food or groceries.
“If we create a range of options, both from a price point perspective as well as a functionality perspective, we create loyalty,” he told this masthead after Uber’s annual product launch event in New York.
“If you add Uber One membership, we create an ecosystem for users to come back for both rides and [Uber] Eats, and that’s our strategy. Our strategy is to continue to provide more value for users.”
Uber chief product officer Sachin Kansal during an Uber product unveiling event in New York.Credit: Bloomberg via Getty Images
Uber, listed on the New York Stock Exchange, has 171 million users across 70 countries and raked in $US12 billion in revenue last year, a growth of 20 per cent. The company is also targeting commuters through other new features like price lock pass, which allows customers travelling a specific route regularly to pay a lower price across multiple rides for an upfront fee.
Kansal said Uber had received feedback that prices were a key concern and said the company could leverage its “great scale advantage” across the world, including in Australia, to help them save.
“Commuters tell us, I’m willing to wait and walk if you’re going to give me a deal, and if you help me save money on my daily commute,” he said.
Uber’s product booth showcasing the Dine Out feature set to roll out in Sydney in June.Credit: Bloomberg via Getty Images
“We don’t want to just get complacent on what’s happening right now. We want to ask users, OK, what are the problems we can solve in addition to what we may already be doing?”
Restaurants will not need to be on Uber Eats or pay Uber to feature deals on the app, but will shoulder the discount they choose. Dine Out is set to roll out in Sydney in June (a date has not yet been set), with Melbourne to follow shortly after.
Uber’s reign in Australia continues
Uber Australia and New Zealand managing director Ed Kitchen said Australia, with over 10 million users, had always been an innovation test bed for the company. Uber dominates Australia’s rideshare and food delivery market, where competitors like Deliveroo, Foodora, Ola and GoCatch have failed.
“We have a great role to play with our technology and our engaged customer base, where we can really benefit these restaurants and fill table booking times where they potentially haven’t been able to, but also potentially offer up a new demographic,” Kitchen said.
Sydney restaurant Catalina is one of the first restaurants to partner with Uber for Dine Out.
Catalina director Judy McMahon said she was initially sceptical about Dine Out, but the opportunity to reach a new customer base appealed.
“You know, I wouldn’t have looked at it years ago, but I do see it as a way forward, I think it’s smart,” McMahon said.
Catalina restaurant owner Judy McMahon.Credit: Dion Georgopoulos
While Catalina is a 30-year-old Sydney institution, competition with trendy new restaurants is fierce and overheads such as wages, rent and ingredients have risen, McMahon said. The change of season also has an impact.
“I’m going into winter, I know I’m going to be quieter, I am every year,” said McMahon. “It costs me the same to service 50 customers as it does to service 100, so why wouldn’t I do the 100, some of whom are getting a decent whack off their bill?”
Merchants have the flexibility to decide the discount they are willing to offer and can tailor it according to the day or time of the week.
McMahon hasn’t decided the size of the discount she wants to offer, but is contemplating 20-25 per cent off between Monday and Thursday.
“Friday lunch used to be the big deal, the big ticket day of the week … it’s not any more,” she said. “I would love to be looking in at winter and just seeing a full restaurant during the week.”
The reporter travelled to New York as a guest of Uber.
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