Uber Eats, Uber Technologies Inc.'s on-demand delivery service for restaurant fare, rapidly scaled its business over the past three years to encompass a larger global footprint and higher revenue than many publicly traded restaurant delivery firms, according to key financial details in the company's initial public offering prospectus.
The business, which provides a platform for online restaurant orders and delivery service, reported $7.92 billion in gross bookings during 2018, according to its filing with the Securities and Exchange Commission on April 11. The figure includes the value of food ordered through the platform, taxes and any fees charged by restaurants or Uber.
Uber Eats accounted for $1.46 billion of Uber's $11.27 billion in total revenue for 2018 — a large portion of which is generated from ride-hailing services — according to filings. Uber Eats revenue, which includes delivery and other fees charged to restaurants and diners, came in at $587 million in 2017 and $103 million in 2016, according to the company.
The 2018 total beats Chicago-based Grubhub Inc.'s reported $1.01 billion in revenue during 2018. London-based Just Eat PLC, which delivers to countries in Europe, North America and South America, and in New Zealand, posted $993 million in revenue for 2018, while Berlin-based Delivery Hero SE reported $907 million and Amsterdam-based Takeaway.com NV reported $266 million, according to figures reported in earnings statements and converted into U.S. dollars.
Uber Eats launched in Los Angeles, New York and Chicago in April 2015 and has since grown to more than 500 cities globally, encompassing more than 220,000 restaurants. The global footprint is greater than other on-demand delivery competitors except for Delivery Hero, which touts more than 250,000 restaurants across more than 40 global markets.
The growth comes as restaurants increasingly flock to third-party delivery services to offset declining traffic and cash in on changing consumer trends. In the U.S., Starbucks Corp. and McDonald's Corp. are separately working with Uber Eats to expand delivery options, while YUM! Brands Inc.'s Taco Bell is working with Grubhub to offer delivery across the country.
Meanwhile, stock prices for many of the companies have dropped in the past year.
Grubhub shares dropped 33.3% in the year ended April 15, according to S&P Global Market Intelligence. Much of the drop came amid growing competition from Uber and other delivery players, Jefferies Equity analyst Brent Thill said in an April 12 note to clients.
Delivery Hero shares have dropped 10.2% during the same period and Just Eats shares declined just 0.4%, according to Market Intelligence.
Takeaway.com shares posted a drastic counter to the trend, rising 66.5% during the year. The company recorded a 51% boost in orders year over year during the first quarter of 2019 and acquired the German business of Delivery Hero on April 1, according to an April 10 trading update.