Uber Technologies Inc is currently delivering food worth billions of dollars’ for the local restaurants and is set to take over the kitchens too.
Currently they are testing a program wherein it rents a fully equipped kitchens to serve food based business and sell it across delivery apps. In 2018, Uber’s food delivery team was leasing real estate in Paris and has been stocking the property with ovens, sinks, refrigerators and stoves along with other kitchen appliances.
Though the concept of virtual restaurant is still early the undertaking would make Uber direct competitor of a business run by former board member, Travis Kalanick. The ex-chief executive officer of Uber is trying not to comment on any of these rumors.
The news of Uber’s virtual kitchen is still under wraps and there is no confirmation from any spokesman of the company. A spokesman for city storage system mentioned that Uber is playing an important part in the kitchen-rental business and almost more than 80% of tenants are offering through Uber Eats. The spokesman also mentioned that are happy to develop real estate solutions for the food industry and especially for Uber.
Kalanick was associated with Uber for almost seven years, and played a vital role in transforming it from a startup to a worldwide transport network system that is joining millions of people. What went wrong was Kalanick made a various errors, the major being spearheading a deal that led to a lawsuit for trade-secrets. Kalanick was made to resign as CEO in 2017 after the turmoil period.
Within almost a year later, Kalanick had secured a controlling stake, valued at USD 150 million in City Storage Systems. The company purchases various construction properties buildings or land, thus betting on the fact that the economy will always grow the value of real estate in main cities.
One year later Kalanick worked on one business idea of smart kitchens. This would allow people to open pseudo-restaurants if they are unable to get a location for themselves. The concept of CloudKitchens is now operational with various restaurants and food brands. Humphry Slocombe, a California ice cream shop, is known for leasing space.
Kalanick’s approach towards the cloudkitchen concept is a little secretive with employees being restricted to update in LinkedIn profiles.
Uber’s virtual restaurant project is budding, but food delivery has become a significant business. The gross bookings for Uber Eats was 17% of the total value of company in the third quarter. The success and acceptance by people, for the concept of CloudKitchens has demonstrated the promise of the model. Though Uber is still unsure about its decision to launch cloudkitchens, the wait is still on to see how things work out for both the companies.