Uber Eats Drones: Can Profits Take Off?

uber eats drones omnidigitDrones are getting more attention than before.

Recently, we talked about CVS drones.

The latest news is the unveiling of Uber Eats drones at the
Forbes’ Under 30 Summit in Detroit.

With six rotors for landing and take-offs, these drones can
stay airborne for 18 minutes for up to 18 miles.

As you know, Uber’s food-delivery business has
not been profitable yet.

And the company is trying hard to change this.

Uber has not disclosed the designer or manufacturer of the drones.

Where will Uber Eats drones fly?

Uber says that they will fly orders from restaurants to
specific areas where and Uber Eats driver will deliver it to the customer.

Yes, drones are not replacing humans yet.

Uber’s long-term strategy is to use drones to drop
orders atop a human-operated car.

Let’s talk numbers.

Uber launches Eats in 2015.

Today, over 320,000 restaurants are part of this delivery service.

In 2016, Eats accounted for 3% of total revenue.

Last year, this number grew to 13%.

Talking about Q2 2019, we are looking at 19%.

Al hunky-dory, right?

Nope.

Uber loses $3.36 on every Eats order.

As per investment firm Cowan, Uber Eats
won’t be profitable until 2024.