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Why Uber Wants to Start Testing Food Delivery through Drones

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Uber is hoping to cut its losses

Uber (UBER) posted a net loss of $1 billion in the first quarter of 2019 alone. One of the factors driving its cost is that a good chunk of its revenue goes to drivers. The company aims to eventually reduce this cost and head to profitability.

Uber is working on its self-driving car unit, which if successful, would reduce this cost in the long term. The company is also working on the transportation of passengers through flying taxis by 2023.

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Uber will start testing food delivery through drones

Meanwhile, the ride-hailing giant is getting ready to start testing drone delivery for its food delivery division, Uber Eats, according to a report by Bloomberg.

During testing, food deliveries will not be made to customers, according to the report. Drones will be sent to “safe landing zones” where couriers pick up the deliveries and then hand them over to the customer. As the report pointed out, if this is rolled out, it could save time and money. According to the report, Uber’s drone can cover a 1.5-mile distance in just seven minutes.

As the company’s core ride-hailing business is slowing down, its food delivery business is surging. During the first quarter, Uber Eats made $3.07 billion in gross bookings, growing 108% year-over-year.

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