Uber operates a two-sided mobility and delivery platform across ride-hailing and food delivery. In the region under review, Uber already has an established rides business and a smaller but growing Uber Eats presence. Regional leadership must decide where to deploy the next 12 months of growth investment: expand Uber Eats more aggressively or prioritize rider growth in the core mobility business. The decision matters because capital, local operations bandwidth, and city-level regulatory attention are limited, and management believes only one of the two bets can receive full support this year.
You are the regional strategy lead for MetroAndes, a cluster of three large cities in Latin America. Uber currently serves 5.2 million annual active riders in the region and 1.1 million annual active Uber Eats consumers. The rides business is profitable on a contribution basis, while Eats is growing faster but remains more operationally complex. Competitors are active in both categories, and local regulators are considering new rules on gig worker protections and delivery fees.
The GM asks for a recommendation: should Uber allocate the next $25M growth budget primarily to Uber Eats expansion or to rider growth? You should evaluate market attractiveness, competitive intensity, unit economics, cross-platform synergies, and execution risk.
| Metric | Rider Growth | Uber Eats |
|---|---|---|
| Current annual active users | 5.2M riders | 1.1M eaters |
| 3-year market CAGR | 9% | 18% |
| Avg. monthly orders/trips per active user | 3.4 trips | 2.1 orders |
| Gross booking per trip/order | $11.50 | $17.00 |
| Contribution margin after variable costs | 14% | 6% |
| 12-month retention | 61% | 44% |
| Estimated CAC for next incremental user | $9 | $22 |
Additional market context: