Uber and Simply Eat Takeaway CEOs spar as European meals supply battle heats up

Uber Eats supply

Jonathan Raa | NurPhoto through Getty Photographs

LONDON — The CEOs of Uber and Simply Eat Takeaway on Wednesday grew to become engaged in a public spat after Uber introduced it’s planning to launch in Germany — a market that’s at present dominated by Simply Eat Takeaway.

Uber Eats will launch in Berlin within the subsequent few weeks and probably increase into different German cities within the coming months. The information was first reported by The Monetary Occasions and confirmed to CNBC.

Simply Eat Takeaway CEO Jitse Groen accused Uber CEO Dara Khosrowshahi of making an attempt to “depress” his agency’s share value on Twitter on Wednesday. Shares of Simply Eat Takeaway closed down nearly 3%.

Khosrowshahi responded: “Recommendation: pay rather less consideration to your brief time period inventory value and extra consideration to your Tech and Ops.”

Shortly thereafter, Groen replied: “If I’ll … begin paying taxes, minimal wage and social safety premiums earlier than giving a founder recommendation on how he ought to run his enterprise.”

Uber operates its ride-hailing service in 13 cities throughout Germany however the firm has by no means launched Uber Eats in what it views as a strategically essential market. 

A spokesperson for Uber instructed CNBC: “As a part of our ongoing funding in Germany, we’re excited to be launching Uber Eats to unlock the total potential of Uber’s mobility and supply platform.”

“Primarily based on suggestions from eating places and communities, we imagine there’s sturdy demand for extra meals supply providers and a extra aggressive market. We sit up for serving to customers, eating places and employees entry the advantages of the Uber Eats market very quickly.”

In Europe, Uber Eats is at present out there within the U.Ok., France, Spain, Italy, Switzerland, Italy, the Netherlands, Belgium, Sweden and Eire. Roughly 24 million individuals used the app to order meals from round 126,000 eating places in Europe final 12 months, as lockdowns resulted in additional individuals ordering takeaways.

“Europe particularly has been a shiny spot for (Eats), each when it comes to a number of the progress we have seen, but additionally, frankly, when it comes to the strengthening of our market place,” Pierre-Dimitri Gore-Coty, Uber’s senior vp of supply, reportedly instructed The Monetary Occasions.

He added that Simply Eat Takeaway is successfully “dominating” the German market regardless of its “terribly excessive” fee charges, in keeping with the report. “That interprets into customers and retailers really being fairly determined for added choices,” he stated.

Uber Eats takes a fee of as much as 30% on every order, relying on the providers that it supplies.

Uber Eats hasn’t gone down properly all over the place it has been launched. The service was pulled from India final 12 months and South Korea in 2019. Operations have additionally shut down or bought in elements of japanese Europe, South America and Africa.

Uber, which is hoping to succeed in profitability for the primary time this 12 months, stated its meals supply couriers in Germany will likely be employed by fleet administration firms which might be contracted to Uber.

The corporate can pay the fleet administration companies for every order they perform and it is as much as them to determine how they pay their staff.

Competitors in meals supply

Britain’s Simply Eat and the Netherland’s Takeaway.com introduced they had been planning to merge in July 2019 as a part of a £9 billion (greenback conversion) deal.

Others have tried and did not go up towards Simply Eat Takeaway in Germany together with U.Ok.-headquartered Deliveroo, which pulled out of Germany in 2019 to give attention to different markets.

Final June, Simply Eat Takeaway, one of many largest meals supply companies on this planet, introduced plans to merge with Grubhub within the U.S. after Grubhub’s talks with Uber fell by way of.

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