Updated: Apr 20, 2019
Do you understand how Uber eats delivers, RS100 sandwich for RS 80?
You should understand that the target customer for Uber is restaurant owners but not the people who
orders sandwich. They will make restaurant owners understand that Uber eats can market their
Uber may run in losses initially but in future, they may ask restaurants to sell sandwich for Rs 50 and
they will take the responsibility of selling and delivering them by fixing their own price. Every business
has a margin for marketing costs which will be given to uber and in return they assure of guaranteed
sales. Same strategy was applied to their cab owners; initially they gave huge rents for the cab owners
and reduced gradually. Uber has run in huge losses but was able to get publicity and improved their
valuation. Uber was able to improve from 48 billion dollars to 62 billion dollar in less than a year. This
should be the ideal strategy of any start up.