Uber Introduces Goods Transportation Service in Major German Cities
Uber Expands Operations into Delivery Services
In a significant expansion of its operations, ride-hailing and food delivery service Uber has launched a new courier service in Germany. Dubbed Uber Courier, the service will facilitate the transportation of goods across Berlin, Cologne, Munich, Frankfurt, Düsseldorf, Hamburg, Hanover, Stuttgart, and Mannheim. The service, initially launched in the UK, is now operational.
Uber Courier leverages the company's existing network of delivery partners for its operations. Couriers will utilize either bicycles or cars depending on the size and distance of the shipments. Each shipment can weigh up to 20 kilograms, with a combined weight limit of 60 kilograms and must fit in the trunk of a mid-size car. The costs for Uber Courier are displayed within the app, calculated based on travel time and distance.
According to Germany CEO Christoph Weigler, Uber's new offering aims to support local small businesses in quick deliveries within the city.
Although Uber Courier is primarily geared towards logistics and delivery expansion, it underscores Uber's broader strategy of service diversification beyond ride-hailing and food delivery. This diversification could potentially reduce Uber's reliance on traditional taxi services. However, it does not directly compete with or replace traditional taxi services. Instead, it opens up new opportunities for Uber to interact with local businesses and consumers through logistics services.
Since entering the German market eleven years ago, Uber has faced resistance from taxi associations, unions, and parts of the government. Criticisms have centered around the company's business models and working conditions at partner companies. In an effort to expand its presence and strengthen its partnership with the taxi industry, Uber recently opened its app to all taxi companies in Germany, with around 20% of all taxis in cities like Berlin now cooperating with Uber, and over 4,000 taxi drivers nationwide participating.
The service, Uber Courier, utilizes technology to calculate costs for transportation of goods, displayed within the app.This diversification of Uber's services beyond ride-hailing and food delivery signifies their broad strategy, leveraging technology for logistics and delivery expansion.
