Introduction
Uber Eats offers a new option for people to receive a variety of foods delivered to their doorstep. The company is a primary food-delivery service provider in the United States. At a high level, Uber Eats led to a rise in economic activity for drivers, growth in the financial services sector, increased demand for takeaways, and a shift in activity from household to wholesale grocery shopping by food outlets. In particular, the shift has captured an increase in the gross domestic product (GDP), reflecting the company’s potential to penetrate new markets (Lake, 2021). Its marketing approach is central to the company’s rapid growth and success in the United Kingdom.
Kotler et al. (2022) stated that marketing builds product and service demand, contributing to the bottom line and enabling companies to engage with customers through segmentation and social positioning. However, Uber Eats faces stiff competition from long-serving UK-based companies like Deliveroo and Eats. Marketing strategies can increase business value, and Eber Eats should revamp its marketing strategy to successfully set out its business goals in the United Kingdom.
Uber Eats
Uber Eats has continuously strived for customer satisfaction and perfection. Incepted in 2014 and previously named Uber Fresh, Uber Eats operates as Uber’s subsidiary across the world (Kalimuthu & Sabari, 2020). Uber users typically hail a car and wait for their ride to arrive. However, Uber established that food is emotional, and most people are willing to scroll through menus to decide on their next meal. The San Francisco-based company identified a niche in the market and capitalized on food-delivery services.
Today, Uber Eats is open to professional food photography, offering people a wide range of meal options and flexible delivery distances and speeds. In 2016, Uber launched Uber Eats in the UK, which is now available nationwide (Allen et al., 2021). Larger competitors in the UK include Eat, Take Eat Easy, and Deliveroo. The company is revamping its marketing strategy and model to gain a competitive edge and sustainable growth in the UK.
Uber Eats’ SWOT Analysis
Uber Eats’ SWOT analysis gives visibility to its current status in the UK market. Regarding strengths, Uber Eats offers timely and flexible food delivery services for a range of dishes, from select options to full menus, from specific food outlets (Kalimuthu & Sabari, 2020). Additionally, the app segregates the driver base to prevent service overlap with those handling food deliveries.
In turn, Uber drivers can switch on either of the two services, thus creating more sources of income. The open service charge ensures transparency and consistency in pricing. The app allows restaurants to create, edit, and track their offerings.
Furthermore, food outlets can target their offer exclusively to all users on the app in the UK and use the performance dashboard to view results. Uber created a loyalty program to attract new customers, get more attention from restaurants, and increase sales. Through this, users can customize budget recommendations based on their order history and location.
Fast food delivery is key, making the Uber Eats app convenient for users and restaurants. With the COVID-19 pandemic, the food-service delivery sector experienced changes in consumer demand, increased agility, and a surge in digital ordering (Lord et al., 2022). Following the coronavirus pandemic, online ordering has become the norm, more efficient and convenient than ever. Uber Eats has tapped into these trends to compete with existing service providers such as Deliveroo and Eat.
Despite the strengths, the app offers a limited restaurant selection due to the company’s growth phase in the UK. Customers must switch to Yelp to access restaurant reviews. Under the Uber Instant Delivery menu, items get prepared in advance. However, Uber Eats may have few customers, forcing drivers to throw away prepared meals.
Lord et al. (2022) and Kalimuthu and Sabari (2020) contended that with the growing demand for food-delivery services, Uber Eats has an opportunity to expand operations in the UK. Furthermore, Uber can learn from top players like Eat to assess demand in various markets and innovate accordingly. However, companies like Deliveroo are moving aggressively, and getting users to download another food-delivery app threatens Uber Eats’ expansion in the UK.
Uber Eats’ Marketing Approach
Companies must build a positive customer relationship based on understanding and trust. Through marketing, businesses can effectively engage customers, build their brand, boost sales, create revenue options, and maintain relevance (Kotler et al., 2022). For example, having options gives companies access to new markets, thereby increasing revenue opportunities and expanding their customer base.
Uber integrates various marketing tools and strategies into its business model, providing a reliable link between Uber Eats and the UK. Further, specific theories and models are evident in the company’s marketing approach. Evaluating and assessing Uber Eats’ position in the UK in terms of its marketing is essential for understanding its consumer dynamics and identifying potential areas for growth.
Marketing Mix
In marketing, a product or service should benefit consumers and the business itself. According to Kotler, a product has three levels: core, actual, and augmented. At the core level, the primary benefits of the products are established (Teichert et al., 2020). In this view, Uber Eats is streamlining food delivery in the UK by monitoring delivery performance and updating menu offerings.
The actual level encompasses product quality, packaging, and design, as described by these characteristics, including user perception (Teichert et al., 2020). Following this level, Uber Eats provides engagement tools for both users, including customers and third-party providers such as restaurants. Conversely, the augmented features comprise those that ensure customer satisfaction and facilitate easy product use (Teichert et al., 2020). Uber Eats has customized its menu for different order types, giving customers more options, driving revenue, and meeting local demand.
Further, the three levels offer a contextual framework for marketing components. Kotler described the marketing mix as a set of tools that a company combines to meet production objectives in a target market. The seven Ps of marketing are essential to influencing consumer preferences and demand: product, processes, place, positioning, price, people, and promotion.
However, the four essential factors driving Uber Eats’ marketing in the UK include product, price, promotion, and place (Figure 1). The factors fall under the categories of segmentation, targeting, and positioning. Uber Eats selects the most profitable segments while employing positioning strategies and market coverage to gain a competitive advantage.
Segmentation
Uber Eats must analyze various segments to better understand its target market. Furthermore, different segments have varying needs and interests; thus, Uber Eats must tailor its marketing activities to suit the UK market. Food delivery companies are increasingly using technology to enhance their marketing approach.
For this reason, Uber Eats has considered demographic, geographic, economic, and behavioral factors in its segmentation framework in the UK since 2019. Demographic variables used by Uber include gender, age, and family size. For example, younger customers are more likely to use the Uber Eats app than older people.
Nonetheless, Uber Eats is becoming mainstream across all demographics. Under geographical segmentation, Uber Eats considers factors like culture and population density when targeting potential customers in the UK. Uber Eats’ segmentation must possess measurability, substantiality, actionability, and accessibility (Camilleri, 2018). This increases Uber Eats’ credibility among potential clients in the UK.
Hanifah et al. (2022) asserted that creating a marketing campaign demands understanding the service or product itself. Uber launched Uber Eats to make food delivery reliable and accessible at any time. Central to the UK’s food service market are restaurant takeaways and food delivery services.
Moreover, price affects the company’s profitability and sustainability in the UK, which falls under the category of economic factors. For instance, product price adjustments affect the overall marketing strategy, product demand, and sales. Uber Eats is still gaining a foothold in the UK, facing existing competition from companies such as Eat, Take Eat Easy, and Deliveroo (Lord et al., 2022). Consequently, charging higher prices to the target market is challenging; food prices and delivery costs are interrelated. Uber leverages technological advancements to reduce service costs while establishing a robust food delivery network.
Additionally, Uber Eats’ marketplace constitutes three parties: consumers, restaurants, and delivery partners. The dynamic relies on order placement, acceptance, arrival, and completion. The mobile app uses an AI-based algorithm to calculate the estimated cost. More precisely, it charges standard delivery fees, depending on the method the final customer chooses for delivering their order.
Positioning
The next phase in target marketing is positioning, which focuses on enhancing customers’ perceptions of a company’s products and services. Uber Eats has built around benefits for the UK market and differentiates its services from those of key competitors, such as Deliveroo. Still, Uber Eats can position itself as a low-cost and timely food-delivery service company to build its brand image in the UK.
Statistically, there are approximately 43,775 fast food and takeaway restaurants in the UK, and the average weekly spend on takeaway meals is 5.3 GBP (Lock, 2022). In 2021, the UK’s total food service delivery share was worth £ 10.5 billion (Lock, 2022). Uber Eats adds to these figures by serving as a platform that links food outlets to consumers.
Targeting
Given the growing competition, it is necessary to identify unmet customer needs after completing market segmentation. In terms of targeting, Uber Eats applies a differentiated marketing strategy. According to Camilleri (2018), a company that employs a differentiated marketing strategy develops individual service offerings and creates a tailored marketing plan for each segment.
Uber Eats has identified the services most crucial to the UK market, which has thus far translated to greater profitability for the company. Uber Eats makes it easy for people to discover nearby and new places to eat in the UK. The delivery option is expected to offer users an enhanced selection of restaurants.
According to Lord et al. (2022), food-delivery services are increasingly available in the UK. Uber Eats promotes its services in the UK through advertisements, direct marketing, and public relations to enhance brand recognition and drive sales. For example, Uber Eats directly communicates with customers through the app. In terms of public advertising, Uber Eats’ social media presence is extensive. With an effective promotion strategy, Uber Eats has successfully acquired customers and driven brand awareness and credibility.
Uber Eats’ Digital Marketing Strategy
In an age of technological innovation and commercialization, digital marketing is a key to a successful business. Chaffey and Ellis (2019) defined digital marketing as “achieving marketing strategies through applying digital technologies and media” (p. 11). In practice, it entails managing various forms of online presence, including company websites, social media pages, and communication channels.
The digital marketing techniques employed by Uber Eats include social media marketing, search engine marketing, and strategic partnerships with select websites. Further, online channels support Uber Eats’ service process, from order placement to delivery. Chaffey and Ellis (2019) argued that for digital marketing to be successful, these techniques must be integrated with traditional media, such as direct mail, print, and TV. Uber Eats embraces TV commercials to expand its market reach in the UK.
The rapid growth of digital marketing platforms presents Uber Eats with a winning opportunity in the UK market. According to Chaffey and Ellis (2019), most users consume data through RSS feeds. Uber Eats conveniently inserts ads in its Facebook and Twitter status updates, which underlie the contemporary marketing environment.
For Uber Eats users, the marketing experience gives them the advantage of personalization and optimization. On the other hand, digital marketing enables Uber Eats to achieve local reach, cost-effective solutions, effective targeting, and multiple strategies, ranging from influencer marketing to social media marketing (Kalimuthu et al., 2020; Lord et al., 2022). Still, the company needs to revamp its digital marketing strategy given the stiff competition in the UK’s food delivery sector.
Recommendations
Integrating traditional and Internet channels is key to a digital marketing strategy. Chaffey and Ellis (2019) asserted that the interaction of digital marketing strategy with other channels forms part of multichannel marketing. The use of clear objectives for brand development in the UK would significantly contribute to the app’s sales and leads. Another crucial aspect is ensuring consistency with the type of users who can be effectively reached through the app (Chaffey & Ellis, 2019).
Uber Eats can achieve this by defining a differential value proposition that must be effectively communicated to its target users in the UK. However, Uber Eats should manage its user lifecycle through the phases of attracting and retaining customers. Therefore, the company should align its digital marketing strategy with more specific company objectives and initiatives.
Most importantly, Uber Eats must support the user journey with other channels to gain a competitive edge. The company can measure the success of its marketing strategies by using key metrics. Uber Eats can use impression share to determine its visibility in the UK market compared to other food-delivery companies.
Furthermore, increased digital impression leads to higher sales and profits. Likewise, AI-powered solutions such as Marketing Cloud can help the company track leads in a unified dashboard (Andrews, 2017). In this way, Uber Eats can determine whether it needs more leads or the right content to expand its reach in the UK.
Uber can track the success of these activities by incorporating key performance indicators (KPIs), including customer satisfaction, revenue growth, average response rate, type of request, profit margin, client growth and retention rate, and employee engagement. Through the average response rate, Uber Eats can establish the time needed to connect with customers after they place their order (Azudin, Norhashim, and Nachiappan, 2018).
While the delivery personnel may lack the expertise or knowledge to provide a definitive solution, the company can primarily benefit from reducing the waiting time. On the other hand, the type of request can help Uber Eats better understand its customers’ needs and issues that need to be resolved, such as the app displaying inaccurate delivery times. Additionally, Uber Eats can perform surveys to gather information on the experience of customers, delivery people, and restaurant owners. Implementing these KPIs implies that Uber Eats devises a strategy to attain its goals while evaluating its performance.
Conclusion
An integral part of any successful business is its marketing strategies. The changing market landscape, technological advances, commercialization, and globalization necessitate bridging the gap between traditional and digital marketing channels. Uber Eats has maintained its position as a leading food delivery provider in the United States due to its effective implementation of strategy.
Online food-service delivery is a new business model in the contemporary era of e-commerce that has primarily contributed to the startups of online businesses. However, the company faces heightened competition in the UK from home-based companies, including Eat and Deliveroo. Uber Eats needs to overhaul its marketing approach to enhance its business performance and gain a competitive edge in the UK.
References
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