Uber shuts UberRush down.
UberRush, an on-demand delivery service that connects shared economy couriers with businesses and individuals who need to schedule on-demand pick-ups and deliveries. It is an incredibly convenient service that connects people with local goods, food, and things. Individuals can have practically anything they want delivered to their door.
In 2014, Uber launched “Uber rush” – an on-demand delivery service that will operate in major metropolitan markets like San Francisco, Chicago, and New York. Over the weekend, Rush team New York sent out an email to customers informing them that the service will end in June 2018, the emails reads according to TechCrunch:
“At Uber, we believe in making big bold bets, and while ending UberRUSH comes with some sadness, we will continue our mission of building reliable technology that serves people and cities all over the world,” Uber’s NYC RUSH team wrote to customers. Also added “We’re winding down UberRUSH deliveries and ending services by the end of June,” not to forget “We’re thankful for our partners and hope the next three months will allow them to make arrangements for their delivery needs. We’re already applying a lot of the lessons we learned together to our UberEats food delivery business in over 200 global markets across more than 100,000 restaurants.”
In April 2017, Uber stopped Uber Rush courier service for restaurants, encouraging them to switch to its UberEats program. Quartz reported at the time that former employees said that restaurants were the bulk of its business and that UberEats was simply more lucrative.
Moreover, Uber continue to face supply constraints from its Eats push, the food delivery platform which offers a more attractive value proposition than Rush did. That’s because with Uber Eats, customers place their orders through Uber’s app. The company collects a delivery fee ($5 in most cities), and a cut of around 30% from the restaurant, and a cut of 25% to 30% from the courier on each order, rather than the flat mileage-based fees on Rush. While Rush‘s Rates on-demand delivery vary depending on location and distance. Typically delivery will cost customers between $5 and $7 for the first mile and an additional fee of $2 to $4 per extra mile. Uber Rush couriers will receive 75% to 80% of the total delivery fee.
The closure of UberRush follows another on-demand shipping company, Shyp. The company downsized its operations back in July, and on Tuesday, announced that it was shutting down.