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Uber Inks Deal With Key Food Stores: More Upside Ahead?
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Key Takeaways
Uber partners Key Food to offer grocery delivery from more than 300 stores across the Northeast and Florida.
Uber Eats expands grocery access with fresh produce, meat, seafood and essentials.
The deal boosts Key Food's digital reach, with eligible member stores able to join Uber Eats voluntarily.
Uber Technologies (UBER - Free Report) has entered into a partnership with Key Food Stores Co-Operative, Inc., a leading network of family-owned and -operated supermarkets, to introduce grocery delivery services from more than 300 Key Food member stores across the Northeast and Florida through Uber Eats. The collaboration aims to provide consumers with greater convenience and additional shopping options at their neighborhood supermarkets.
The agreement reflects Uber Eats' ongoing efforts to strengthen its presence in the grocery and retail delivery markets by expanding relationships with national and regional supermarket chains across the United States.
Through the Uber Eats app, shoppers can purchase groceries from participating stores within the Key Food Family of Supermarkets, including Key Food, Food Universe, SuperFresh, The Food Emporium and Food Dynasty, among others. The platform offers access to an extensive assortment of fresh fruits and vegetables, meat, seafood, pantry products and household necessities. Customers can choose between immediate delivery and scheduled orders based on their preferences.
According to Prashant Garg, head of North America at Uber Eats, the collaboration enhances access to neighborhood grocery retailers that have established strong connections with their communities. The initiative is designed to provide consumers with greater flexibility in purchasing everyday essentials, whether they need groceries delivered at a convenient time or require an item they missed during a previous shopping trip.
The alliance with Uber Eats represents a strategic initiative to modernize customer service, broaden Key Food's digital reach, facilitate member-store growth and improve the accessibility of neighborhood grocery shopping. The partnership is available to eligible Key Food Co-Op locations interested in participating in the Uber Eats marketplace. As implementation progresses, individual member stores can voluntarily join the platform, enabling them to offer on-demand grocery delivery services to their customers.
Last year, Uber inked a deal with retailer Best Buy (BBY - Free Report) for on-demand delivery. The deal brought consumer electronics from more than 800 stores to the Uber Eats platform. Uber Eats is the online food ordering and delivery platform of the company. Following the tie-up, Best Buy customers throughout the United States are eligible to order a wide range of electronics, appliances and tech essentials on Uber Eats for delivery to their doorsteps.
Uber’s agreements with discount retailers Dollar General (DG - Free Report) and Dollar Tree (DLTR - Free Report) were also on the same customer-friendly lines. The tie-up with Dollar General ensured that its more than 14,000 locations arrived on the Uber Eats platform. Following the association, customers are using the Uber Eats app to order food, beverages and other essentials.
The deal with Dollar Tree has also enhanced UBER’s retail delivery capabilities by adding nearly 9,000 stores to the Uber Eats platform. The partnership with Dollar Tree ensures that customers across states can easily access affordable items of everyday use, ranging from party supplies to cosmetics and home essentials for on-demand delivery.
UBER’s Share Price Performance, Valuation and Estimates
UBER’s shares have declined in low single digits (%-wise) over the past three months. The stock has still outperformed the Zacks Internet-Services industry over the same time frame.
3- Month Price Comparison
Image Source: Zacks Investment Research
From a valuation standpoint, UBER trades at a 12-month forward price-to-earnings of 15.29X. UBER is inexpensive compared with its industry.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Uber’s earnings has been revised over the past 90 days.
View the Zacks #1 Rank List
Image: Bigstock
Uber Inks Deal With Key Food Stores: More Upside Ahead?
Key Takeaways
Uber Technologies (UBER - Free Report) has entered into a partnership with Key Food Stores Co-Operative, Inc., a leading network of family-owned and -operated supermarkets, to introduce grocery delivery services from more than 300 Key Food member stores across the Northeast and Florida through Uber Eats. The collaboration aims to provide consumers with greater convenience and additional shopping options at their neighborhood supermarkets.
The agreement reflects Uber Eats' ongoing efforts to strengthen its presence in the grocery and retail delivery markets by expanding relationships with national and regional supermarket chains across the United States.
Through the Uber Eats app, shoppers can purchase groceries from participating stores within the Key Food Family of Supermarkets, including Key Food, Food Universe, SuperFresh, The Food Emporium and Food Dynasty, among others. The platform offers access to an extensive assortment of fresh fruits and vegetables, meat, seafood, pantry products and household necessities. Customers can choose between immediate delivery and scheduled orders based on their preferences.
According to Prashant Garg, head of North America at Uber Eats, the collaboration enhances access to neighborhood grocery retailers that have established strong connections with their communities. The initiative is designed to provide consumers with greater flexibility in purchasing everyday essentials, whether they need groceries delivered at a convenient time or require an item they missed during a previous shopping trip.
The alliance with Uber Eats represents a strategic initiative to modernize customer service, broaden Key Food's digital reach, facilitate member-store growth and improve the accessibility of neighborhood grocery shopping. The partnership is available to eligible Key Food Co-Op locations interested in participating in the Uber Eats marketplace. As implementation progresses, individual member stores can voluntarily join the platform, enabling them to offer on-demand grocery delivery services to their customers.
Last year, Uber inked a deal with retailer Best Buy (BBY - Free Report) for on-demand delivery. The deal brought consumer electronics from more than 800 stores to the Uber Eats platform. Uber Eats is the online food ordering and delivery platform of the company. Following the tie-up, Best Buy customers throughout the United States are eligible to order a wide range of electronics, appliances and tech essentials on Uber Eats for delivery to their doorsteps.
Uber’s agreements with discount retailers Dollar General (DG - Free Report) and Dollar Tree (DLTR - Free Report) were also on the same customer-friendly lines. The tie-up with Dollar General ensured that its more than 14,000 locations arrived on the Uber Eats platform. Following the association, customers are using the Uber Eats app to order food, beverages and other essentials.
The deal with Dollar Tree has also enhanced UBER’s retail delivery capabilities by adding nearly 9,000 stores to the Uber Eats platform. The partnership with Dollar Tree ensures that customers across states can easily access affordable items of everyday use, ranging from party supplies to cosmetics and home essentials for on-demand delivery.
UBER’s Share Price Performance, Valuation and Estimates
UBER’s shares have declined in low single digits (%-wise) over the past three months. The stock has still outperformed the Zacks Internet-Services industry over the same time frame.
3- Month Price Comparison
From a valuation standpoint, UBER trades at a 12-month forward price-to-earnings of 15.29X. UBER is inexpensive compared with its industry.
See how the Zacks Consensus Estimate for Uber’s earnings has been revised over the past 90 days.
Uber’s Zacks Rank
Uber currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.