Despite these growing (rotten) pains, Uber's investors are confident that the ambitious startup can compete against standalone delivery startups like Postmates and Instacart, as well as rival delivery offerings by big tech companies like Amazon, eBay and Google.
"There's nobody who has as big of a real-time logistics network than Uber," entrepreneur and one of Uber's first investors Jason Calacanis told the WSJ. "If they can make another business line work with this infrastructure, that could transform the business."
The WSJ is reporting that Uber, currently valued at $41 billion, is looking to raise even more money to fund this competitive drive. The new funding round would raise Uber's valuation to a record high of $50 billion.
Anyone who's ever ordered anything via an app--whether its Postmates, GrubHub, or Instacart--knows that same-day delivery can be a hit or miss. You either get your meal nice and warm or you have to wait for it until your stomach starts to growl. Sometimes the grocery shopper picks up strawberries with a bunch of mold on top or the delivery guy squishes your box of cupcakes sitting at the bottom of his backpack.
When it comes to same-day deliveries, speed is prioritized over care. You might get a refund for any items that were lost or forgotten, but getting your money back for something that was not delivered puts you back at square one. You still have to somehow get laundry detergent. When delivery apps screw up, it turns out that it's actually cheaper and faster for you to have just gone the good-old DIY route.
Uber is also testing a bike courier service, as well as a moving service with U-Haul-style vans. SideCar, a competitor, is also testing same-day delivery service of hot meals, groceries, flowers, and even medicinal marijuana.
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