Uber now depends on Uber Eats for most of its growth
Uber Technology’s (UBER) core ride-hailing business has slowed over the last few quarters after growing tremendously over two years. The company now depends on Uber Eats, its fast-growing food delivery segment, for growth.
According to SensorTower, Uber Eats was the most downloaded food and drink app from iOS and Google Play Store in April. Uber Eats’ install count more than doubled year-over-year to ~8 million, of which 24% were in India, a hot market for Internet companies.
The online food delivery business is heating up in India
Uber Eats was followed by Indian food-delivery app Zomato, which saw 6 million first-time downloads in April according to SensorTower. Another Indian unicorn, Swiggy, placed fourth, while McDonald’s (MCD) app placed third.
Whereas Uber Eats faces stiff competition from Swiggy and Zomato in India, it looks to be winning the food-delivery race there. However, Uber Eats has been spending heavily on promotions to steer price-sensitive Indians to its app, which could pressure its bleeding bottom line. Uber stock is currently trading ~8% below its IPO price of $45. The company went public earlier this month.