Uber — the company known for on-demand taxi rides — is getting into the on-demand delivery business. Its foray into the delivery world is in Washington, D.C., where it has unveiled an experimental delivery service it calls Corner Store.
Here’s how it works: Say my baby is sick, and I need some infant cold medicine.
Uber will send one of its drivers out to pick up whatever I need.
“Just think about a mom who’s at home with a sick kid and she doesn’t want to leave the child alone. It’s the perfect opportunity,” says Paula Rosenblum, managing partner at Retail Systems Research.
Rosenblum says Uber is competing with lots of other companies who are experimenting with on-demand delivery: Google, eBay, Walmart. And, of course, Amazon.
How can Uber compete with the likes of Amazon? Think of Amazon as a bus, and Uber as, well, a taxi.
“Amazon is going to have the low-cost delivery because of all those passengers on the bus, whereas Uber is going to have one package on the taxi, ” says Rob Howard, founder and CEO of Grand Junction, a company that provides software for shippers.
Uber is offering its Corner Store delivery service for free at first, although you have to pay for the products you order. If Corner Store becomes permanent, it’ll have to charge for delivery.
While Uber may not be able to match Amazon’s low prices, but Howard says consumers may be willing to pay more to get stuff fast.