Business

Uber cuts courier prices & expands, now handles ‘thousands of deliveries’ per week

Above: Promotional image for Uber's UberRush courier service

Image Credit: Uber
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Updated 9:08 a.m. ET with a comment from Postmates.

Nearly three months after launching its “UberRUSH” courier service in New York, Uber has quietly cut prices and expanded the initiative beyond Manhattan.

In an update on its blog, Uber shares that it now offers flat rate deliveries to “Brooklyn or Queens.” And in an email to spur adoption, Uber announced price cuts ranging from 20 to 30 percent — pickup and delivery services now start at $11, down from $16.

Now valued at $17 billion, Uber is no stranger to price cuts or hikes. The firm recently lowered car service prices in LA but raised the price of its mid-level service in New York back in April.

Uber claims its “partners are making thousands of deliveries each week.” On-demand delivery service Postmates, by comparison, tells VentureBeat that it “is currently doing around 15,000 deliveries a week across 9 markets.”

From what we can see, Uber has no plans to expand its courier service outside of New York in the short term, although the firm continues to aggressively expand its car service in the U.S. and abroad.

UberRush currently operates like a traditional bike messenger courier service — the firm does not yet purchase goods for users on-demand — but recent partnerships with firms like cosmetics startup Birchbox, clothing rental service Rent The Runway, and product design community Quirky reveal Uber’s intentions to expand into product delivery.

Such an expansion will create new competition for existing on-demand delivery services like Google Shopping Express, a declining eBay Now, WunWun, Postmates, and Instacart.

For more on UberRush, check out VentureBeat’s exclusive report on the service.

More about the companies and people from this article:

Uber Technologies Inc is known as Everyone's Private Driver. Uber operates an on-demand car service used all over the world. With the touch of a button from your phone, you can experience your own private driver. Sign-up quickly, g... read more »

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18 comments
Manish Patel
Manish Patel

So they along with others are picking at a niche in LOGISITICS that UPS or the Post Office don't want becuase of high labor cost per transaction. Crazy stuff. I guess there is enough wealth in their target markets that people will pay for this type of service. I guess they can subcontract to pizza guys. Are they going to compete with seemless too?

Joel Reyna
Joel Reyna

Their business is logistics whether that applies to moving people or moving things, it is still logistics.

Tim Fox
Tim Fox

I watched a documentary about a company doing this during the dot com bubble. I hope it finally pulls through.

Luis Velasco
Luis Velasco

Try gocloudf.com instead, also offering storage

Willis Chan
Willis Chan

Didn't they give away the 'thousands of deliveries'?

Luiz Candreva
Luiz Candreva

Pedro Kopacek Signorelli David Aragão Rogerio C. O. Guimarães viral isso?

VentureBeat
VentureBeat

It's definitely an expansion. Uber wants to move stuff around. Products and people.

Manish Patel
Manish Patel

Is this becuase the cab thing is hitting legal issues? This type of move seems like a pivot as opposed to a new business.

JR Jabbar
JR Jabbar

Austen Von Brave Plummer I believe Uber is getting into your mate's business?