UBER Expands Its Food Delivery Business: Is it a Growth Catalyst?

In line with the efforts to expand its food delivery business, Uber Technologies (UBER) announced the inclusion of multiple new retailers to the Uber Eats marketplace, aimed at expanding its retail selection availability for on-demand delivery. The new retailers include Kiehl’s, FedEx Office, Blick Art Materials, Academy Sports + Outdoors and Choice Pet, all of which can be accessed through the Uber Eats, Uber and Postmates apps.Uber Eats, the online food ordering and delivery platform of Uber, is expanding beyond its patent food delivery business and offering a vast marketplace which covers everyday needs such as skincare, shipping supplies, art materials, sporting goods and pet supplies. This will allow consumers to browse and order from thousands of participating stores nationwide, with delivery available on demand or as scheduled.Uber One members are entitled to enjoy no Delivery Fee on eligible retail orders and other ongoing benefits.Uber has already added various retail locations across the United States, strengthening its position as a multi-category delivery platform.Last year, Uber inked a deal with retailer Best Buy BBY for on-demand delivery. The deal brought consumer electronics from more than 800 stores to the Uber Eats platform. Uber Eats is the online food ordering and delivery platform of the company. Following the tie-up, Best Buy customers throughout the United States are eligible to order a wide range of electronics, appliances and tech essentials on Uber Eats for delivery to their doorsteps.Apart from the deal with Best Buy, Uber’s agreements with discount retailers Dollar General (DG) and Dollar Tree (DLTR) were also on the same customer-friendly lines. The tie-up with Dollar General ensured that its more than 14,000 locations arrived on the Uber Eats platform. Following the association with Dollar General, customers are using the Uber Eats app to order food, beverages and other essentials.The deal with Dollar Tree has also enhanced UBER’s retail delivery capabilities by adding nearly 9,000 stores to the Uber Eats platform. The partnership with Dollar Tree ensures that customers across states can easily access affordable items of everyday use, ranging from party supplies to cosmetics and home essentials for on-demand delivery.UBER’s Share Price Performance, Valuation and EstimatesShares of UBER have gained in single digits over the past three months. Despite the upbeat performance, UBER’s shares have underperformed the Zacks Internet-Services industry over the same time frame.3- Month Price Comparison Image Source: Zacks Investment ResearchFrom a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.42X. UBER is inexpensive compared with its industry. Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for full-year 2026 earnings has declined in the past 60 days while the same for full-year 2027 has gained in the same time frame. Image Source: Zacks Investment ResearchUBER's Zacks RankUBER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks