Uber's package delivery service drives rapid growth for small businesses

Uber Connect is helping deliver packages across 23 cities. Total deliveries over the past two years have covered a distance enough to circumnavigate the earth 1,100 times

Ride-hailing giant Uber said that Connect, its package delivery line of business, has completed two years of operations, helping deliver packages across 23 cities and driving growth for many small businesses around the country. Altogether total deliveries through Uber Connect over a period of the last two years have covered a distance enough to circumnavigate the earth over 1,100 times.  

The product, launched in 2020 during the nationwide lockdown, was initially intended to help people deliver packages safely while staying within the comfort of their homes. The testing times the country faced during those days meant Connect was used by people to deliver essentials such as medicines, and groceries, and by small home-run businesses to send packages to their customers.

“This service helps move what matters, for individuals and businesses,” said Nitish Bhushan, director, central operations, Uber India and South Asia. “Uber Connect is a prime example of how we are adapting our platform to meet the needs of our communities and is also an extension of our ongoing efforts to provide driver-partners with new earning opportunities.”

This business has shown greatly increased acceptance from customers since its launch, with deliveries in May 2022 being 95 per cent higher than the same period last year. Over the two years, Uber Connect has widened its scope, too, serving as a lifeline for many small businesses, including pharmacies, boutiques, art suppliers, and photocopiers, among others. The firm said customers have voiced their choice of Uber Connect as their delivery service owing to its reliable delivery, at the most affordable prices.

Uber Connect has progressively been witnessing a higher share of business users as compared to lockdowns. The service now also provides customers with the option of choosing between Doorstep delivery and Curbside delivery, while also offering them a choice of making payment via cash. Listening to feedback from customers, Uber Connect now also allows concurrent deliveries, which is booking a second delivery before the first has been completed.  

Uber Connect trends:

Average distance covered for Uber Connect deliveries: 10.4 km

Average distance covered during lockdowns: 9.3 km

Peak demand time: 12 p.m. to 3 p.m.

Cities that send most Uber Connect packages at night (post 10 p.m.): Hyderabad, Delhi, Kolkata

Day of the week with the highest demand for Uber Connect (pan India): Wednesday

Day of the week with the highest demand (citywise):

o   Bengaluru - Tuesday

o   Delhi - Thursday

o   Chennai - Saturday

o   Mumbai - Thursday

o   Kolkata - Thursday