UberEATS: Redefining Meals, Meal Components, and the Future of Foodservice

 

In 2014, Uber, the San Francisco-based ride-sharing powerhouse valued at over $40 billion, quietly began to transform another industry: food delivery. With the launch of its meal delivery service — first piloted as UberFRESH in Los Angeles and Barcelona — Uber laid the foundation for what would become UberEATS, officially launching in New York City and Chicago shortly thereafter.

At a time when consumer behavior around food was evolving rapidly, the move was not just smart — it was inevitable. As the Grocerant Guru® from Foodservice Solutions® had predicted, the convergence of convenience, technology, and evolving food acquisition patterns was about to spark a seismic shift in both foodservice and grocery retail.

 

Historical Context: Why UberEATS Was Perfectly Positioned

The early 2010s saw fundamental shifts in how consumers engaged with food:

·       53% of U.S. dinners were now planned within one hour of mealtime (NPD Group, 2014).

·       Fast casual dining was growing at 11% annually, five times faster than traditional QSRs (Technomic, 2014).

·       Mobile app adoption soared, with 81% of U.S. adults owning smartphones by 2015 (Pew Research).

·       Millennials, who were becoming the largest adult demographic, spent 44% of their food dollars on food away from home (USDA, 2015).

UberEATS launched into a landscape primed for disruption. It wasn't just about delivering meals; it was about meeting consumers where they were — physically and psychologically.

 

How UberEATS Worked (and Why It Worked)

Initially targeting lunch service between 11 a.m. and 2 p.m., UberEATS offered curated daily menus from local restaurants, priced affordably between $9 and $15, with a simple $4 delivery fee. Users simply toggled to the “EATS” section of the Uber app, dropped a pin at their location, and chose from a small, rotating menu.

Curbside pickup allowed drivers to maintain high efficiency, reducing delivery times to 10 minutes or less — compared to an average of 42 minutes for traditional third-party delivery at the time (QSR Magazine, 2015).

The Grocerant Guru® succinctly branded it "Fast Food Delivery — Redefined."

 

Five Reasons the Grocerant Guru® Was Right About UberEATS' Early Success

1.       Asset Optimization

o   Uber leveraged its existing infrastructure — 1+ million drivers worldwide by 2015 — maximizing downtime during non-peak ride times.

2.       Consumer-Centric Timing

o   Recognizing that 59% of all food delivery orders occur during lunch hours (Technomic), UberEATS targeted the highest-volume window first.

3.       Menu Simplification = Decision Facilitation

o   Limited daily menus tapped into choice architecture theory, where fewer choices reduce decision fatigue and increase conversion rates (Cornell University, 2014).

4.       Urban Focus

o   Launching in dense cities like NYC, Chicago, and LA maximized delivery speed and minimized driver idle time, crucial to maintaining profitability.

5.       Price-Value Alignment

o   With meals priced between $9–$15, UberEATS hit the sweet spot where 78% of consumers said they would order delivery more often if it were under $15 (Mintel, 2015).

 

Five Reasons UberEATS (and Competitors) Will Continue to Grow

1.       Permanent Shift Toward Off-Premise Dining

o   In 2024, off-premise restaurant sales account for 70% of total restaurant sales (National Restaurant Association).

2.       Expansion Beyond Meals to Meal Components

o   UberEATS now offers sides, meal kits, alcoholic beverages, and pantry staples, tapping into the booming $34 billion meal kit market (Statista, 2024).

3.       Rise of the "Marketplace App"

o   Apps like UberEATS are now ecosystems, offering over 300,000 restaurant partners globally (Uber 2024 Annual Report), increasing stickiness and repeat usage.

4.       Ghost Kitchens and Virtual Brands

o   By 2027, ghost kitchen sales are projected to reach $71.4 billion globally (Euromonitor), and UberEATS is positioned as a major distribution platform.

5.       Data-Driven Personalization

o   AI and machine learning enable hyper-personalized offers, increasing average order value by up to 18% according to McKinsey research.

 

The Critical Undercurrent: Bundling Meals and Components

The success of UberEATS lies not merely in moving prepared meals from restaurant to consumer, but in the emergence of meal component bundling — a hallmark of the grocerant evolution.

Today's consumers build meals differently:

·       64% of consumers regularly purchase individual meal components instead of full meals (Datassential, 2024).

·       Mix-and-match meal building increases perceived value and allows personalization, key to winning Millennial and Gen Z loyalty.

UberEATS empowers this trend by offering bundled sides, beverages, and even desserts in one seamless order flow — meeting the consumer need for both speed and choice.

 

Think About This: Why Outside Eyes Reveal Inside Sales

UberEATS' success is not a fluke. It reflects deep, structural shifts in how consumers think about, buy, and consume food. As the Grocerant Guru® has long advised, brands that embrace these changes early — bundling meal components, simplifying ordering, optimizing assets, and prioritizing immediacy — will win today and dominate tomorrow.

If your brand is looking to leverage the power of Ready-2-Eat and Heat-N-Eat foods, bundle components for maximum customer relevance, or better understand the evolving food marketplace, outside eyes can help deliver inside sales.

Visit www.FoodserviceSolutions.us, connect at linkedin.com/in/grocerant, or follow on twitter.com/grocerant for strategic insights, Grocerant Scorecards, and customized SWOT analysis.

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Why Mobile Ordering Wins: Ditching the Kiosk for a Smoother Experience

 

Once again, the Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has his view on the value that speed of service has in the minds-eye of the consumer. While self-serve kiosks have become increasingly common, mobile and online ordering platforms offer a range of advantages that make them the preferred choice for many customers. Here's why:

1.       Convenience at Your Fingertips: Mobile ordering allows you to place orders from anywhere, at any time, using your own device. No need to navigate a kiosk or wait in line – simply browse the menu and submit your order at your own pace.

2.       Bye-Bye Lines: Kiosks can still lead to queues, especially during peak hours. Mobile ordering lets you bypass these lines entirely, saving you valuable time and frustration.

3.       Accuracy You Can Trust: With mobile ordering, you can meticulously review your selections and make any necessary changes before submitting your order. This reduces the risk of errors and ensures you get exactly what you want.

4.       Personalized Perks: Mobile platforms can track your preferences and purchase history, allowing businesses to tailor their marketing efforts and offer you special promotions that align with your tastes.

5.       Boosting Efficiency: Mobile ordering streamlines operations by minimizing the need for manual order-taking and payment processing. This frees up staff to focus on other tasks, improving overall efficiency.

6.       Flexibility on the Go: Mobile ordering platforms are readily accessible from any device, making it easy to place orders from anywhere, at any time, whether you're at home, at work, or on the go.

7.       Cashless Convenience: Both kiosks and mobile ordering offer the ease of cashless transactions. However, mobile ordering takes it a step further, allowing you to pay securely from anywhere, without needing to be physically present at the kiosk.

8.       The Post-Pandemic Shift: The COVID-19 pandemic has significantly accelerated the preference for contactless ordering methods. Mobile ordering provides a safe and convenient alternative to traditional in-person interactions.

Consider this, while self-serve kiosks offer a degree of convenience, mobile and online ordering platforms provide a superior customer experience thanks to their enhanced flexibility, accuracy, personalized features, and overall efficiency. So, the next time you're looking to place an order, ditch the kiosk and embrace the many benefits of mobile ordering.

 

O’ yes there is more as fast-casual and fast-food restaurants are increasingly replacing human cashiers with self-service kiosks. While this may seem like a modern convenience, a recent Temple University study reveals a downside: kiosk users experience ordering anxiety, especially when a line forms behind them. This anxiety leads customers to order less food, skip trying new menu items, and potentially miss out on the full restaurant experience.

Here's why takeout and delivery might be a better option in such situations:

·         Reduced Pressure: No rushing or feeling responsible for the line. You can browse the menu at your own pace, consider new items, and make a well-informed decision without the pressure of people waiting behind you.

·         More Adventurous Choices: Takeout menus are readily available online, allowing you to explore the entire menu from the comfort of your home and try something new without the anxiety of holding up the line.

·         Greater Order Accuracy: When ordering takeout or delivery, you have more time to double-check your selections, reducing the chances of mistakes that might occur when rushing at a kiosk.

While self-service kiosks offer convenience, they come with hidden anxieties that can negatively impact the customer experience. So next time you're faced with a long line at a kiosk, consider takeout or delivery for a more relaxed and potentially more adventurous dining experience.

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

Schnuck Markets Targeting Restaurant Dinner Customers

When you are tired, on your way home from work, and don’t know what’s for dinner; Schnuck Markets wants you to think about their grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared meals and meal components first.

According to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® the first 2022 Grocerant Scorecards are out and here is some of what they found:

1.       Recent Grocerant ScoreCards found 81.1% of consumers don’t know what’s for dinner at Noon, and 61.1 don’t know what’ s for dinner at 4PM %.

2.       Roughly 63.7% of consumers purchase prepared food items from a retail location at least three times a month.

3.       79.6% all dinners have at least 1 grocerant niche Ready-2-Eat and Heat-N-Eat meal component and 66.6% have two meal components.

4.       When asked if they wanted to cook dinner from scratch or assemble dinner from fresh meal components 91.3 % of Gen Z chose assemble from Fresh Prepared Meal Components and Millennials 83.4% chose meal components.

5.       Seventy-three percent of retail prepared food purchases are taken to go

6.       Prepared food purchases are frequently a planned purchase among 61.2% of shoppers, while 40.9% of shoppers said they buy prepared foods on impulse. Dinner has the highest amount of prepared food buys with 81.7% of respondents making purchases for that meal, while lunch comes in at 76.9% and breakfast at 61.4%.

Looking more like a restaurant ordering counter than a legacy grocery store deli, Schnuck Markets has expanded its Deli Order Ahead program with the addition of touchscreen kiosks at another 30 stores.

That’s right, self-service kiosks enable shoppers to order sliced meat and cheese, salads and prepared foods without having to wait on line at the deli counter, just like restaurants offer.  So, customer after entering their smartphone number, customers receive a text when their order is ready. The text tells them to pick up their order at the cooler next to the kiosk.

Schnucks noted that the 30 new stores offering Deli Order Ahead also can use the service remotely via the Schnucks Rewards app, allowing them to place deli orders from home for same-day pickup.

With Deli Order Ahead, Schnucks customers can skip the line at the deli counter by placing orders for sliced meat and cheese, salads and prepared foods via touchscreen kiosks. Now when you are at work, tired and don’t want a quick service restaurant meal, you can go to Schnuck Markets.

Chace MacMullan, senior director of digital experience at Schnuck Markets, stated, “The kiosks offer a simple, convenient, and pain-free alternative to fulfilling orders placed at the deli counter... “This is one of the many ways we are providing customers best-in-fresh solutions while also making it easier for teammates to manage orders at the deli counter.”

Currently, Schnucks now has Deli Order Ahead stations at 67 stores. Stores adding the Deli Order Ahead kiosks include 15 locations in Missouri, 14 in Illinois and one in Indiana. Overall, Schnucks operates 111 supermarkets in Missouri, Illinois, Indiana and Wisconsin. shoppers to order custom cakes via the Schnucks Rewards app and the Schnucks website for pickup in the bakery department. At launch, the service made its debut at 95 stores. The supermarket chain also offers order-ahead capability in its prepared foods and floral departments. Who is selling dinner to your customers?

Looking for success clues of your own? Foodservice Solutions® specializes in outsourced food marketing and business development ideations. We can help you identify, quantify and qualify additional food retail segment opportunities, technology, or a new menu product segment.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter 

Technology Drives Convenience Store Sales

 

Restaurants success with mobile contactless ordering, pick-up, and marketing helped propel sales so much that grocery stores the ilk of Walmart, Kroger, and Publix have jumped in and consumers adoption of mobile ordering continues to accelerate according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Convenience stores need a strong digital strategy to meet new consumer demand and adoption of and for less contact, or even no contact ordering and pick-up according to Johnson

Pepared food is the primary driver of the foodservice category within Convenience stores, generating 47% of the category’s sales industrywide.  Among small operators, prepared food accounts for more than half of the category’s sales at 53%, compared to 38% for large operators.  Johnson added that 83.1% all dinners have at least 1 meal component and 68.4% have two meal components. 

Mike Flebotte, partner at Business Accelerator Team, said during the recent Conexxus 2020 Annual Education and Strategy Conference stated, "Being mobile-friendly is very important at this point,". "So many consumers are looking at mobile devices and trending toward mobile that it is really essential for retailers to have a mobile-friendly web presence."

Millennials matter as the average daily mobile internet usage of millennials aged 25 to 34 was almost four hours. Flebotte continues "Operators focused on appealing to this generation of shoppers really have to make sure their website is responsive across all devices,". 

With a digital marketing strategy geared toward increasing customer visits, Flebotte said there are two ways for c-store retailers to drive visits and sales: sell current customers more and more often, and increase total customer count.

This is important mobile apps drive conversion more so than websites, according to Flebotte. In fact, mobile apps can generate up to 300 percent higher conversion rates than a website. "Operators evaluating the cost to maintain both — responsive website and a separate mobile app — should consider potentially a web app," he said.

Other best practices he offered for developing a digital strategy to drive traffic are:

·         Plan for integration;

·         Have a mobile strategy that enables two-way communication between the customer and the brand;

·         Plan to be flexible;

·         Redefine success; and,

·         Think outside the box.

"Looking outside of your industry for marketing innovation and finding new ways to stand out against your competition is essential," Flebotte said. "As platforms continue to evolve, and shopping behaviors continue to change and shift, it's important for retailers to try to stay ahead of the curve seeking new and innovative ways to leverage technology to more effectively market to customers." Are you looking a customer ahead?

C-stores have an opportunity with mobile commerce, and it starts with registering the consumer and moving him/her into the path to purchase journey, according to fellow Conexxus Conference presenter Don Frieden, CEO and founder of P97, a mobile commerce and digital marketing platform provider. 

Consumers will want more than just mobile ordering.  The opportunity to provide multichannel marketing, such as emails and in-app messaging, to influence the consumer along the journey. And then, step three is to leverage geolocation by having all the retailer's locations in the platform.

Additional steps in the mobile commerce journey, Frieden cited, are:

·         Mobile pay at the pump;

·         Mobile order ahead; and

·         Loyalty rewards and targeted offers. 

The benefits of moving a consumer to mobile are in the numbers, Frieden pointed out. Comparing NACS State of the Industry (SOI) data to P97 data, he cited that the average gallons per transaction based on card-based transactions is approximately 10.8 gallons per SOI's findings vs. an average of 12.2 gallons based on mobile transactions per P97's findings. Are you looking a customer ahead?

Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter