Controversial ride-hailing company Uber, which has already disrupted taxi businesses around theworld, is now eyeing the delivery sector with a new ‘sharing’ service in Hong Kong.
The new service, branded as ‘UberCargo’, launched in the Asian metropolis last week, usingprivate persons as drivers in the same way as with its existing taxi services. The new serviceappears to mostly target private individuals for deliveries within the territory but is alsoavailable to businesses, prompting observers to predict that the delivery industry could be thefirm’s next target.
In a blog post, the company wrote: “With UberCARGO, your goods travel like a VIP. Thesame cashless and convenient service you have grown to love through UberBLACK anduberTAXI is now available for all your moving and delivery needs. Whether you’regoing cycling in Dragon’s Back, moving a mattress to a new house, riding with alarge pet, or sending items to a friend, UberCARGO is for you. If you own a business,UberCARGO provides an easy way to cover on-demand logistical needs without complicated & costlydelivery arrangements.”
Customers can use the UberCargo app to request a collection and can track the van’s progress tothe pick-up point. The drivers help customers to load and unload goods, and customers can eitherride with their goods or track the delivery trip via the app.
Explaining how the service works, the firm said: “With UberCARGO, a van arrives wherever youwant it to be in minutes. You can load your items in the back of the van yourself orrequest the driver’s assistance if you need an extra hand. Deliveries can easily be tracked inreal-time through the app, the item’s location can be shared with the recipient and you caneven ride along with your goods so you’ll have ease of mind that your items are safe.”
UberCargo prices are based on a combination of time and distance. There is a HK$20 starting fee,plus HK$1.60 per minute plus HK$4.50 per km. There is a minimum price of HK$40 per trip. The tripis priced from when the driver meets the customer, and thus includes loading, until when unloadingof the goods has been completed.
Uber cited several beta customers, including small business owners, about their experiences withthe service. Steven Wu, from the Locofama Group, commented: “UberCargo allows us to deliverfresh organic groceries from our farm to the homes of our VIP customers in a clean, friendly, andreliable way!” Jaime Ku, of Buzz Concepts, said: “UberCargo helps us to take the party anywhere inHong Kong!”
Currently active in some 70 cities around the world, Uber’s taxi and chauffeur services havetaken significant business away from traditional licensed taxi operators and private car companies.Last year it tried out bike couriers in New York under the name ‘UberRush’.
Uber’s ‘asset-light’ low-cost business model is based on operating a technology platform thatbrings together drivers and customers, but it does not own the operational resources. Drivers areprivate contractors who use their own vehicles, and thus have legal liability for the trips.
The US firm, now valued at an astounding $40 billion, claims to be “transforming” thetransportation industry to the benefit of customers. But it has frequently run into legal andpolitical problems in many cities, with local taxi companies and politicians claiming that itoperates illegally or does not meet local regulations or possess the necessary licences. Variouscities have banned its operations.
