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Who Owns Uber Eats? Company Owner & History Explained

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Key Takeaways

  • Uber Eats is owned by its parent company, Uber Technologies Inc.
  • Launched in 2014, Uber Eats operates in cities globally, offering food delivery.
  • Uber Eats’ ownership includes Uber’s founders, shareholders, and key investors.
  • As a subsidiary, Uber Eats reflects Uber’s expansive venture into food delivery.

Who Owns Uber Eats?

Uber Eats is owned by Uber Technologies Inc., which is publicly listed on the New York Stock Exchange under the ticker symbol UBER. As a subsidiary of Uber Technologies Inc., ownership of Uber Eats is held by the parent company’s shareholders.

The founders of Uber, entrepreneur Travis Kalanick and Canadian entrepreneur Garrett Camp, initially established the ownership base.

Although Kalanick has sold all his stock and severed ties with the company, and Camp has transitioned to a board observer role, the company is now primarily owned by its shareholders.

Notable figures and entities include CEO Dara Khosrowshahi, Senior Vice President Tony West, Chief Financial Officer Nelson J. Chai, FMR LLC, Morgan Stanley, and SB Investment Advisers (UK) Ltd.

Who is the CEO of Uber Eats?

Dara Khosrowshahi has been serving as the CEO of Uber Technologies Inc., including its subsidiary Uber Eats, since 2017.

As the CEO of the parent company, Khosrowshahi oversees operations across more than 70 countries, which encompasses the management of Uber Eats. His leadership role at Uber means he is also in charge of the food delivery service division.

Before taking up the role at Uber, Khosrowshahi was the CEO of Expedia, where he led significant acquisitions and focused on mobile technology, which greatly increased the company’s market value.

His career prior to Uber also includes a tenure as the Chief Financial Officer of IAC Travel and Vice President at Allen & Company.

Khosrowshahi, who has a background in engineering with a degree from Brown University, was initially hesitant to join Uber due to its challenges at the time.

However, he was persuaded by Spotify’s CEO, Daniel Ek, seeing it as an opportunity to make a substantial impact in one of the most influential and rapidly growing companies.

How Much is Uber Eats Worth?

Statista reports that the Uber Eats delivery platform generated a company revenue of almost $11 billion globally in 2022. That’s a 31% increase from 2021’s performance.

The company also recorded an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of positive $551 million in 2022, unlike the negative $348 million in 2021 and negative $870 million in 2020.

An EBITDA measures a company’s financial health and ability to produce cash. Despite struggles in the market, Uber Eats remains competitive and profitable.

Why Did Uber Branch Out Into Uber Eats?

Uber expanded into the food delivery sector with Uber Eats for several key reasons.

Firstly, to tap into the lucrative food delivery market, which showed significant growth potential in the early 2010s with a large market size and relatively little competition.

Recognizing the increasing global demand, Uber Eats was launched to capture a share of this expanding market, which continues to grow with projections indicating a substantial increase in market size and demand over the coming years.

Secondly, Uber aimed to diversify its revenue streams and increase profitability, especially noting the opportunity presented during the COVID-19 pandemic when traditional ride-hailing services saw a decline.

Uber Eats, benefiting from the pandemic-induced surge in food delivery demand, played a pivotal role in driving the company’s profits during this period.

Finally, Uber ventured into food delivery to establish itself as a strong competitor against existing food delivery services.

By launching Uber Eats and acquiring Postmates in 2020, Uber not only expanded its presence in the food delivery market but also positioned itself as a significant player both nationally and globally, despite facing intense competition in certain international markets.

Why Zomato Took Over Uber Eats

Zomato is one of the major meal delivery services in India, and it acquired all the stock of Uber Eats in India last 2020.

TechCrunch reports that Uber sold its Uber Eats Indian operations to Zomato for $206 million and a 9.99% stake in Zomato. During this time, Zomato had a value of around $3.55 billion.

Here are two reasons why Zomato decided to take over the Uber Eats delivery platform in India.

Consolidate the Market

Zomato acquired Uber Eats to form a stronger entity and presence in the market.

By acquiring Uber Eats, Zomato gains more workforce, allowing them to provide speedy and efficient services at low costs.

After all, Uber Eat’s contract workers are now also under Zomato.

Also, merging with Uber Eats will increase its share in the market to over 50%, beating most of the competitors.

Lastly, Zomato will have better negotiating power with restaurants across India, which can reduce the company’s losses.

Since Uber Eats had trouble competing in a market dominated by Zomato and Swiggy, this was a good deal to prevent further losses.

Beat its Rival

Zomato and Swiggy battle for customers in India, as they’re the top two food delivery apps in the country.

According to an August 2021 survey, Zomato and Swiggy each had about 70% of the market. Zomato bought Uber Eats in hopes of pulling ahead from Swiggy.

However, analyst Satish Meena told TechCrunch that despite buying out Uber Eats, Zomato still lagged behind Swiggy.

Nonetheless, this Uber deal helped Zomato expand its workforce and presence to go head-to-head with Swiggy.

Wrapping Up

Uber Eats is owned by its parent company Uber Technologies. Garett Camp and Travis Kalanick co-founded Uber Technologies in 2009, and Kalanick later stepped down and severed ties with Uber in 2019.

The company’s major stockholders include its CEO, Senior Vice President, Chief Financial Officer, and other investment institutions, such as SB Investment Advisers (UK) Ltd. and FMR LLC.

Despite the Coronavirus pandemic and market competition, this standalone food delivery service remains one of the top brands in its field globally.

If you have further questions about Uber Eats or how Uber works, share your thoughts in the comments section.

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