Uber Eats generates R1.6bn for SA restaurants

Uber Eats has facilitated an estimated R1.6 billion in additional value for South African restaurants over the past decade, as the platform has expanded beyond food delivery into a broader digital marketplace. Operating across all nine provinces, Uber Eats now connects restaurants, retailers, couriers and consumers. Reflecting on its growth, Uber Eats notes that its service has saved consumers over 12.7 million hours of driving to stores or restaurants annually, as its merchant network has grown beyond major urban centers.

Ntsoaki Nsibanyoni, GM for Uber Eats South Africa, highlights that the business has shifted from its initial focus on restaurant meals. "Ten years later, the platform has become integral to how South Africans access goods and services, while helping businesses reach more consumers and offering flexible earning opportunities," she states. The platform has welcomed thousands of merchants in 2023, with nearly three-quarters classified as small and medium businesses.

Uber Eats has also leveraged partnerships with government to onboard more township-based businesses. A collaboration with the Gauteng Department of Economic Development has generated over R1 billion in economic value, integrating thousands of merchants and delivery workers into the digital economy. Gauteng Economic Development MEC Vuyiswa Ramokgopa emphasizes the role of digital platforms in expanding economic participation, particularly by creating employment opportunities for youth and connecting businesses with broader consumer bases.

Despite this growth, the rise of app-based delivery faces challenges in the courier industry, including security risks for workers, such as robberies and hijackings, as well as rising last-mile costs, infrastructure issues, and the pressure to meet fast delivery expectations. Delivery drivers for Uber Eats, Mr D, and other firms have been increasingly targeted in robberies, which could increase insurance and delivery costs.

Looking ahead, Uber Eats aims to further develop its marketplace by expanding its merchant and courier base. As of the end of 2023, the platform had over 10,000 active delivery people, having completed 30 million orders locally over the past full year. The platform's data also reveals consumer preferences across South Africa, with fried chicken with pap being the most ordered meal, followed by chakalaka, malva pudding, lamb bunny chow, sushi in Cape Town, grilled chicken in Durban, and burgers and grilled peri-peri chicken in Johannesburg and Pretoria.