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A comment on Cloud kitchens – commercial facilities built to produce food for delivery. Parent comment

Re:Cloud kitchens – commercial facilities built to produce f... by shaneprrlt on Friday December 06, 2019 @02:00PM (#21724900)
Forgive my ignorance, but I thought I heard somewhere along the line that Uber actually makes money on Eats, am I mistaken?

Also as a separate point, I worked for an on-demand food startup, and I remember our founders talking about a local entrepreneur they knew who rented a single commissary, was operating white labeled brands on the delivery platforms, and was highly profitable.

Almost makes me think the delivery platforms could have a Shopify-type effect for traditional restaurateurs and it will be interesting to see the business models that unfold as a result.

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Re:Cloud kitchens – commercial facilities built to produce f... by jersey on Friday December 06, 2019 @02:41PM (#21725260)
" As of July [2017], UberEats was profitable in 27 of the 108 cities where it operated. Uber declined to reveal the service’s revenue."

https://www.nytimes.com/2017/09/23/technology/ubereats-food-...

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Re:Cloud kitchens – commercial facilities built to produce f... by larnmar on Friday December 06, 2019 @09:36PM (#21728088)
Without knowing the details of their business, it seems likely that Uber is happy to lose money to get a decent foothold in a market, and then slowly change priorities from growth to profitability.

I noticed today that the people who used to hand out $20 off your first Uber Eats coupons in my town are now down to $15... presumably part of this process.

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Re:Cloud kitchens – commercial facilities built to produce f... by pbreit on Friday December 06, 2019 @07:16PM (#21727464)
Eats is very unprofitable.

In Q3 Eats EBITDA was negative $315m while Rides was positive $630m.

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