Uber Eats invest R200mn towards township economy

Uber Eats, in collaboration with the Gauteng Department of Economic Development, has announced a groundbreaking partnership aimed at investing R200 million in a township development project. The initiative is set to onboard 200 merchants and 150 delivery people by March 2023, with a grand vision of having 2,000 delivery people and 700 restaurants by 2026. Nakampe Molewa, General Manager for Sub-Saharan Africa at Uber Eats, expressed immense excitement about this initiative and highlighted the alignment of objectives between the government and Uber Eats. The government's focus on tackling youth unemployment seamlessly merges with Uber Eats' mission to expand its footprint in township areas. By leveraging government support in areas such as safety measures and market identification, Uber Eats aims to cultivate restaurants and enhance the overall dining experience for customers. This strategic collaboration underscores a promising future for inclusive economic development and job creation in South Africa. Currently, Uber Eats has limited penetration in townships, accounting for less than 15% of its business. However, the company envisions tapping into a substantial addressable market of 10 million over the next three years through this initiative. By addressing historical barriers such as restaurant certifications and licensing processes, Uber Eats plans to rapidly scale its presence in township economies. The partnership with the government, which holds a wealth of data on township businesses, enables Uber Eats to identify and onboard local restaurants efficiently. Despite challenges posed by South Africa's energy crisis and other economic headwinds, Uber Eats remains optimistic about its growth prospects. The company is actively exploring innovative solutions to mitigate the impact of load shedding on small and medium-sized businesses in its network. By assisting restaurants in sourcing alternative power supply, Uber Eats aims to ensure uninterrupted operations during power disruptions. Despite these challenges, Uber Eats continues to witness steady growth in South Africa and envisions sustained expansion in the coming years. Furthermore, Uber Eats is engaged with the Competition Commission in addressing concerns raised in a recent report. The report highlighted issues of menu surcharges transparency and restrictions imposed by national restaurant chains, potentially affecting competition in the food delivery market. Uber Eats remains committed to engaging constructively with regulatory authorities and is currently reviewing the report to formulate a comprehensive response. In a dynamic and competitive market landscape, Uber Eats reaffirms its dedication to driving innovation, fostering partnerships, and creating opportunities for economic empowerment and growth in South Africa.