Uber expands delivery test to Chicago, San Francisco

Uber is expanding its "anything" delivery service, UberRush, to the Chicago and San Francisco areas.

The start-up is partnering with local business to offer delivery of anything consumers desire—from groceries and house supplies to takeout food. The move puts Uber is competition with the other companies meeting the growing consumer thirst for on-demand delivery. Other third-party delivery companies include Postmates, Deliv and Amazon Flex.

"These little runs seem harmless but they add up. In fact, 20 percent of all trips in the U.S. are just to move things from A to B—and we're wasting thousands of hours and gallons taking them," said Jason Droege, head of UberEverything, in a company statement.

UberRush, first tested in New York City back in April 2014, now partners with retailers such as Blockheads, Indie Fresh, Sam & Lex and hundreds of other local businesses. Platform partners now include Shopify, Clover, ChowNow, Bigcommerce and BloomNet, as well as local delivery services such as Delivery.com.

While the service was first tested to be a delivery service from one customer to another, Uber found a majority of orders were from local businesses wanting to send their items to customers' homes, Forbes reported. Sellers can enter delivery orders that come in online, over the phone, or through other platforms.

Uber currently does thousands of deliveries per day in New York. Fees vary based on distance and have averaged around $5. Uber will not keep a list of products or inventory because it will remain a back-end service, not a marketplace.

Uber couriers, which deliver by foot, bicycle and car, are trained to do multiple deliveries at once and are paid between 75 percent and 80 percent of the delivery fee.

For more:
-See this Uber press release
-See this Forbes article

Related stories:
Amazon launches crowdsourced delivery Flex
Amazon limits free, two-day shipping
Amazon expands Prime Now to Seattle, delivers booze
Amazon Prime Now expands into Chicago
Amazon, Manhattan eateries partner for one-hour delivery
 

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