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Technology

Uber plans to expand into e-commerce

07 Sep 2022 - by Lyse Comins
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Uber Eats has plans to eventually expand into ecommerce to offer consumers an online “virtual mall” shopping experience delivering products from groceries, pharmaceuticals and traditional medicines, to alcohol in the sub-Saharan African region.

The e-hailing firm announced its plans to expand and enhance its services in major cities across Sub-Saharan Africa at a media briefing on Tuesday. Among the additional enhancements to existing services is an emergency button on the Uber App and the ability to securely record audio during a ride, providing evidence in the event that a consumer files a complaint.

Speaking at the event, Uber SSA general manager, Kagiso Khaole, said the brand was pleased to be expanding into eight more cities during September across Kenya, Nigeria and Ghana.

“As we gear ourselves to mark our 10th year anniversary next year, we are excited about moving into more cities, enabling people to go anywhere and get anything. Our commitment to raising the bar on safety remains relentless and we continue to work hard to grow the over three million earnings opportunities we have created thus far.”

Uber will now be operational in Owerri and Akure in Nigeria; Eldoret, Kisumu, Nakuru and Naivasha in Kenya; and Tamale and Sunyani in Ghana.

To help reduce costs for riders and increase demand for drivers, the company is launching UberX Share in Ghana and Nigeria, and Uber ChapChap Share in Kenya. Uber’s shared rides allow riders to save up to 30% of the trip fare when matched with a co-rider heading in the same direction - and where a match is not possible, they will still be able to save 5% on the ride. 

“The introduction of UberX Share allows us to proudly demonstrate the power of our platform, understanding the ability to match rider destinations while delivering convenience and affordability. We are a global company that builds locally, and in Ghana, we tapped into the local culture of car-pooling when moving around, which makes this product a great fit for the market,” says Khaole.

UberXL has also been launched in Nairobi, Kenya. This option provides seating for up to six people, which is useful for airport and business trips. In South Africa, riders can now reserve their group travel 30 days in advance with UberXL Reserve and Uber Van Reserve. 

He added that several safety features would also be rolled out, including: 

  • Audio Recording pilot in South Africa: Uber will now allow riders and drivers to use the app to record and share audio of their trip as evidence in the case of a safety incident. This new opt-in audio recording feature, which is being piloted in Pretoria and Johannesburg, has been successful in the US and Latin American regions.
  • In-app emergency service in Nigeria: Uber is working with Sety in Nigeria to provide on-demand security and medical response for riders and drivers while on a trip. This collaboration will also provide access to a private security response unit.
  • Safety Check-Up across SSA: This feature encourages riders to complete their safety profile by turning on and using features such as Trusted Contacts, PIN verification, and RideCheck. 

Cikida Gcali-Mabusela, head of new verticals for Uber Eats Sub-Saharan Africa, said the firm was investing heavily in innovation and planned to build an app of the future that would create a virtual mall experience beyond just food.

“Other categories we have ventured into include convenience stores, pharmacy outlets, alcohol and retail, and this shows us that the possibilities are endless. It’s about becoming a virtual mall in your pocket,” she said.

Uber Eats was pushing the boundaries of “dark stores”, which gives non-traditional merchants opportunities to tap into uncharted markets that they wouldn’t have easily accessed.

Uber Eats currently operates in South Africa and Kenya. Kui Mbugua, general manager for Uber Eats Kenya, said the firm had achieved 67% year-on-year growth in subscriptions.

 “The future of logistics and technology in emerging markets looks promising. Our overall vision continues to be to build locally using global experience and become a one-stop shop for delivery needs. “Not only is Uber Eats creating unique earning opportunities, but our operations also have a positive knock-on effect for restaurants, merchants, and delivery people. Looking ahead, we are committed to leading the category by investing in product and access, while leveraging the power of the platform,” Mbugua said.

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