Uber Eats is a delivery service providing and online food ordering platform. Garrett Camp and Travis Kalanick founded the online food ordering platform in 2014. Today, we’ll discuss the PESTLE analysis of Uber Eats; it focuses on external environment factors like; political, economical, social, technological, legal, and environmental factors.
Political Factors Impacting Uber Eats
Some of the main political factors in the Uber Eats PESTLE analysis are as follows;
I-Government Regulations
The consumer protection government regulations and policies are very strict and tight for online food ordering and delivery service providing companies like Uber Eats. They focus on areas like consumer protection, health and food safety, labor laws, vehicle maintenance, driver licenses, transportation, and others. However, the objective of strict government regulations is to ensure the health and safety of ordinary customers.
II-Trade Policies
Uber Eats is operating its online food ordering and delivery service business in over 40 countries across the globe. The trade policies of different countries are variable depending on their foreign policy and diplomatic relations with the supplier country. For instance, if the supplier and procuring countries have conflicted relations, they would impose strict regulations and high tariff to reduce the trade with them.
III-Political Stability
A stable political environment plays a key role in the growth of businesses and companies. For instance, if the country has a conflicted political environment comprising road blocks, processions, and strikes; then it causes delays in the delivery of food orders from Uber Eats. The end consumers won’t receive their food on time.
Economic Factors Affecting Uber Eats
Some of the main economic factors in the Uber Eats PESTLE analysis are as follows;
I-Economic Growth
The economic growth of the country directly impacts the retail sale and food delivery service of Uber Eats. For instance, if the country has a growing business environment with multiple employment opportunities; it implies that the people would have stable source of income and sufficient disposable income. They are willing to spend their disposable income on the food they love.
II-Currency Exchange Rate
Uber Eats is operating its business in various countries and dealing with multiple currencies. The currency exchange rate market is highly unstable and volatile. A small change in currency exchange rate would increase the cost and expenses of the online food ordering and delivery service providing platform.
III-High Cost
The cost of food ingredients, fuel price, and other operational expenses has been increasing significantly. They are posing a great pressure on the Uber Eats platform to increase the retail service price. However, if the platform doesn’t increase the retail price, it would lose food suppliers and hotels; if it increases the retail price, then it would lose a lot of customers.
Social Factors Impacting Uber Eats
Some of the main social factors in the Uber Eats PESTEL analysis are as follows;
I-Online Shopping Trends
The online food ordering and home delivery service trends have been increasing significantly for the past few years. Nowadays, people are leading busy lives, and they don’t have time to cook food at home. Rather, they order food online and the company would deliver the food to their home address.
II-Healthy Dietary Food
Speaking of customer market trends, the consumer market has become highly cautious about the healthy food diet and the organic food item. They are making the conscious decision about the type of food they’re putting into their bodies. However, it allows them to keep up with the growing healthy food and dietary trends and live a healthy life.
III-Speedy Delivery
The online food ordering and home delivery service market has become highly competitive with multiple competitors in the market. Uber Eats should provide the speedy food delivery service to the customers to gain a competitive edge over competitors. It allows them to maintain a competitive position in the market.
Technological Factors Affecting Uber Eats
Some of the main technological factors in the Uber Eats PESTEL analysis are as follows;
I-Drone Technology
Uber Eats is investing a significant amount of capital resources on the development of drone technology. It allows them to offer the speedy delivery service to the end consumers and deliver the food to the end consumer within minutes and hours.
II-Data Analytics
Uber Eats has a massive amount of customer data and the company implements the advanced data analytical technology. It allows them to process the massive amount of customer data, accurately predict the customer shopping patterns and rightly deliver the products to the end consumers.
III-Advanced Technology
Uber Eats is implementing the advanced technological tools and equipment like AI, ML, automation, drone, and others. It helps them to efficiently manage the customer data and resources; smoothly perform its operations with limited disruption.
Legal Factors Impacting Uber Eats
Some of the main legal factors in the Uber Eats PESTEL analysis are as follows;
Regulatory Compliance
Uber Eats needs to comply with the government regulations and policies of various countries. They comprise of consumer protection laws, labor laws, health and food safety laws, transportation laws, vehicle repair and maintenance laws, and others. Regulatory compliance would help them to smoothly perform its delivery operations without delays.
Environmental Factors Affecting Uber Eats
Some of the main environmental factors in the Uber Eats PESTEL analysis are as follows;
Sustainability Initiative
Uber Eats should make a strong commitment to the environmental sustainability initiatives. They comprise of investing in the renewable sources of energy, biodegradable packaging, and others to reduce the carbon emission rate. It allows them to keep up with the growing environmental sustainability trends.
Conclusion: Uber Eats PESTLE Analysis |PESTEL Analysis of Uber Eats |External Environmental Analysis of Uber Eats | Strategic Analysis of Uber Eats
After an in-depth study of the pestle analysis of Uber Eats; we have realized that Uber Eats is the world’s leading food delivery service providing platform. If you are learning about the Uber Eats PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economical, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
