Now that Uber has largely conquered the ride-sharing market in the U.S., CEO Travis Kalanick is accelerating his long-term plan to challenge Amazon.com in delivering goods to people’s homes. But he has to overcome a key problem: how to expand in delivery of food and other goods without undermining Uber’s core business.
Those secondary businesses, two-year-old UberEats (hot food delivery) and one-year-old UberRush (delivery of groceries, flowers and hot food too), largely rely on the same network of drivers that the company uses for its ride-sharing operation. And already some Uber city managers have resisted diverting drivers to the new initiatives, especially during peak ride-sharing times at night, said people familiar with the internal dynamics. Adding to the complication is infighting between the UberRush and the UberEats teams, these people said.