Why Uber's Latest Move Could Be Good News for Your Business

Why Uber's Latest Move Could Be Good News for Your Business
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Senior Entrepreneurship Writer at CNBC
2 min read

Uber is inching closer toward its plan of dominating every segment of the transportation industry.

Today, the -based ridesharing company officially unveiled its on-demand delivery service UberRUSH in San Francisco, and . Uber has been experimenting with pilot programs of the delivery program since at least last summer when it partnered with a handful of -based businesses, including Rent The Runway, Birchbox and Baublebar.

UberRUSH will pick up and deliver everything from a meal to an item of clothing to a bouquet of flowers. Deliveries are made by foot, bike messenger and car, depending on the location and delivery.

The target for UberRUSH is , as it gives them access to more customers without them having to manage the infrastructure of a delivery fleet.

Related: 5 Entrepreneurial Lessons From Uber on Its 5-Year Anniversary

“If every delivered, we’d all save time and energy. But most simply can’t,” says Uber in a blog post announcing the product launch. “Day-to-day operations are already complicated and delivery can cause all sorts of logistical headaches.”

Pricing varies by city. In New York, a delivery that travels less than 1 mile costs $5.50 and each additional mile is $2.50. In San Francisco, deliveries start at $6 within a mile and each additional mile costs $3.

The product launch puts Uber squarely in the crosshairs of San Francisco-based Postmates, an on-demand service that promises delivery of local goods in under an hour. The difference between Postmates and UberRUSH approach: Postmates is designed for users to search on its platform for local businesses that are part of its delivery ecosystem, whereas UberRUSH is positioning itself as the back-end infrastructure that small-business owners plug into when they have a delivery to make.

Related: What You Need to Know to Compete With the Surging

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