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In a move to broaden its user base and enhance customer experience, Uber (NYSE:) Eats announced that it will integrate Supplemental Nutrition Assistance Program (SNAP)/Electronic Benefit Transfer (EBT) payments into its service from 2024. This initiative is part of Uber Eats’ commitment to serving all community members and faces competition from DoorDash (NASDAQ:), which has already begun offering such services.
Alongside this, Uber Eats has launched a feature allowing customers to order from multiple stores in a single session without additional delivery fees. Users can add diverse food options from different stores before proceeding to checkout, catering to varied dietary preferences within a household.
To enhance the user experience further, Uber Eats is developing an AI-powered conversational shopping experience with real-time order tracking and personalized food and grocery suggestions for SNAP/EBT users. Plans are also underway to roll out generative AI chat responses to improve user interaction.
These community-driven approaches, coupled with data-driven optimizations, are expected to increase sales, customer retention, and gross bookings from the delivery division. As per InvestingPro data, Uber has a market cap of 94.19B USD and has seen a significant revenue growth of 37.0% in the last twelve months till Q2 2023.
The introduction of new payment methods brings regulatory scrutiny, with potential financial penalties or criminal charges for non-compliance with Food and Nutrition Service guidelines. Yet, Uber remains a prominent player in the Ground Transportation industry and has seen a high return over the last year, as noted by InvestingPro Tips.
The platform also plans to introduce healthcare-related payments like flex cards and waivers by 2024. This will enable users who are recipients of managed Medicaid and Medicare Advantage plans to purchase fresh groceries and pay with their benefits directly through the app.
Uber Eats remains committed to innovation and social causes which could potentially strengthen its brand image. Notably, InvestingPro Tips also highlight that Uber’s net income is expected to grow this year, and analysts predict the company will be profitable this year. For more insights, you can check out InvestingPro’s additional tips.
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