Uber’s Virtual Restaurants

Uber found a massive opportunity in the food-delivery market and launched UberEats.

Thanks to it’s already established network of drivers and brand recognition, people were quick to jump on the new app.

Uber now had the ability to analyze behaviours of millions of users.

And, they found an insight.

In a particular neighbourhood of Brooklyn, Uber found that users were searching for certain cuisine types that not many restaurants offered.

Supply didn’t match the demand.

And, there was no way restaurants would know that. They didn’t have access to this information.

So Uber approached some restaurants and said – have you considered spinning up a different type of menu that’s delivery only. It will only exist on UberEats and we’ll promote it together.

This experiment turned out to be a phenomenal success.

Uber is now capitalizing on this new-found insight to expand its business.

Uber calls it Virtual Restaurants.

“This program allows you to create new brands and deliver new cuisines to customers, without the risk and expense of opening another physical location.”

Like software, now restaurants can iterate on their cuisines and fail fast.

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