Uber CEO: We're going after groceries next

Uber is digging deeper into the business of food.

Uber’s restaurant delivery business “Eats” hit $6 billion in bookings earlier this year, growing over 200%, quickly becoming a crown jewel for the ride-sharing company.

Uber CEO Dara Khosrowshahi said given the success in the delivery of food, the next logical step is to enter the grocery space.

“We will move into grocery. That’s fundamental. A lot more people will be eating at home. Right now we are busy with Eats, but you can see grocery as an adjacent business. We’re thinking about Uber much more as a platform,” he said at Vanity Fair’s New Establishment Summit 2018 on Tuesday.

Earlier this year, Uber had teamed up with Walmart (WMT) to test out grocery delivery. The initiative, originally billed as an ambitious move to take on Amazon, was quietly scrapped in May after a short three months.

RELATED: Check out the top companies of 2018, according to LinkedIn: 

50 PHOTOS
LinkedIn top 50 companies 2018
See Gallery
LinkedIn top 50 companies 2018
#50: Abbott
#49: Tableau Software 
#48: JLL
#47: PepsiCo
#46: Starbucks
#45: Johnson & Johnson 
#44: Box
#43: Twitter
#42: Capital One
#41: ADP
#40: Square Inc. 
#39: National Football League
#38: Kering 
#37: Citadel 
#36: WeWork
#35: Nike 
#34: Accenture
#33: National Basketball Association 
#32: DropBox 
#31: Cisco 
#30: Stryker
#29: Ernst and Young
#28: Morgan Stanley
#27: Live Nation
#26: Boston Consulting Group 
#25: PwC 
#24: Goldman Sachs 
#23: Verizon 
#22: Deloitte
#21: Samsung 
#20: IBM 
#19: LVMH 
#18: J.P. Morgan Chase & Co.
#17: Dell Technologies
#16: Time Warner
#15: Airbnb
#14: Adobe
#13: McKinsey & Company
#12: Uber 
#11: Spotify 
#10: Netflix 
#9: Oracle 
#8: The Walt Disney Company 
#7: Comcast NBCUniversal 
#6: Apple 
#5: Tesla 
#4: Salesforce
#3: Facebook
#2: Alphabet
#1: Amazon 
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

 

It’s a saturated space, with startups like Instacart, Amazon Fresh and Postmates Fresh all formidable competitors.

“Eating is something people do three times a day and someone needs to be the orchestration layer. The real challenge for us is where do we focus, where do we partner,” Khosrowshahi said, suggesting the intention to go at it alone this time around.

“Transportation is a $6 trillion business and we’re 1%t of it,” he said, saying he plans to make a push into the freight business as well. Uber is on track to go public next year. 

Melody Hahm is a senior writer at Yahoo Finance, covering entrepreneurship, technology and real estate. Follow her on Twitter @melodyhahm.

More from Yahoo Finance:
The cities most at risk of a housing bubble 
One-third of Americans believe the middle class will disappear entirely 
The housing recovery has left rural America behind 
Homebuyers are demanding one amenity right now

Read Full Story