As well as dominating the taxi industry since 2009, Uber has now announced that it has plans to expand into the delivery service. Named UberRUSH, Uber will connect consumers with couriers rather than taxis, competing with Royal Mail (RMG.L), Deutsche Post (DPWGn.DE) and PostNL (PTNL.AS).
European transport and logistics analyst at Jefferies, David Kerstens, has commented on this competition:
“UberRUSH would be another potential competitor trying to take a slice of the pie, which would no doubt put further pressure on companies like Royal Mail when same day delivery grows in importance,”
Whilst Uber currently has no plans to start the courier service in the UK, UberRUSH has been already been established in New York, San Francisco and Chicago, with analysts predicting that it is only a matter of time before the app reaches the UK given the rapid growth of the taxi service.
According to a report by the delivery company ParcelHero, if UberRUSH were to capture 10% of the country’s courier market, it would provide £700 million. This would add to pressure felt by competitors, which are down 3-20% a year.
Redmayne-Bentley investment manager David Battersby has commented:
“The traditional postal companies will not disappear but with the competition coming in, I don’t see how they can maintain their iron-like grasp on the market,”
