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Uber to unveil e-commerce delivery program

By Kristopher Fraser

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Business

Uber will soon no longer just be known for driving people around, they are about to become a shoppers best friend. For the last year, Uber has experimented with transporting packages, and now it's ready to make a formal arrangement for their package delivery services. The transportation service is partnering with a number of fashion brands as Uber looks to become an express delivery option for eager fashionistas.

Uber plans to announce the partnership as early as this month or next month in October. Sources familiar with the rollout said that it will start in New York City, and it will include some major luxury brands found around Fifth Avenue and Madison Avenue whose names are still undisclosed at this time. Partnerships with San Francisco retailers will be announced shortly after the New York partnerships are announced.

Uber partnering with luxury brands for delivery service

In order to increase their number of partners, Uber has been in negotiations with apps like Bigcommerce and Shopify, which help small businesses set up online storefronts. By doing this, Uber is hoping to make its delivery option available to a large number of small brick-and-mortar stores without having to integrate with each and every one. Uber's history of trying to partner with brands is not so promising, however.

Previously, when the brand tried to partner with Gilt Groupe and luxury jeweler Alexis Bittar it was reported by The Wall Street Journal that both companies had issues with using Uber drivers. Gilt said they were forced to use bikers for courier service due to Uber's 1000 dollar maximum insurance policy, and Alexis Bittar said during busy times they couldn't get Uber to deliver goods. Hopefully they have learned from their mistakes and can provide better service with these upcoming partnerships.

Uber's new business unit, Uber Everything, has been working dilligently to try and build the company's number of retail partners in preparation to launch the delivery service.

Potential retail partners are expected to add an Uber same-day deliver options to their websites and apps that will only show up for customers in zip-codes where Uber delivery service is offered. Some retailers might choose to pass the Uber delivery cost along to shoppers, while other retailers may cover the cost themselves, especially for high priced orders. Customer's won't be able to order directly from the Uber app when it first launches.

Depending on the market, deliveries will be made by bike, messenger, or car. Training materials have already been developed for drivers. Hopefully Uber will be able to get their delivery service up to par this time around, because it stands to make a lot of eager shoppers happy.

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