Ridehailing service Uber – one of the newest incoming members of the S&P 500, is now sending couriers to pick up and deliver prepaid customer purchases.
It's latest in a growing list of services that underscore how the company is trying to capitalize on the holiday shopping frenzy.
The timing comes shortly after CEO Dara Khosrowshahi said in his prepared remarks tied to the company’s most recent quarterly earnings that demand on its platform "remains healthy."
Starting Tuesday, customers in more than 1,500 cities and towns across the U.S. will be able to send a courier to pick up their product purchases from local stores under its new "Store Pickup" feature. This can include any upcoming holiday purchases.
The packages have to be pre-paid and the receipt must be uploaded into the Uber Eats app in order for it to be processed, according to the company.
Uber signage on a vehicle in San Francisco, California, in April 2023. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
The package also has to be under $200 in value and weigh less than 30 lbs. All items sent through Uber Connect must also comply with all laws and regulations and with Uber policies, according to its website.
The items can be sent to either the user or someone else. The user can also track the delivery process through the app.
"It is the perfect product for consumers who could use a little help picking up items from local stores, whether they’d like to have those items delivered to their homes, or to friends and family nearby," Wendy Lee, Uber director of Delivery Product Management, said in a statement.
Just last month, the company expanded the Uber Connect service in letting users return packages for the first time.
Users are able to schedule a courier pick up your prepaid and sealed packages – up to five at a time, which can be dropped off at a local post office, UPS or FedEx, according to the company's website.
It's "Store Pickup" feature comes with just nearly three weeks of holiday shopping left before Christmas. However, its being advertised as a way to help people who are ordering in-store pickup last minute.
Transport apps including Uber and Zipcar are seen on a smartphone in London on November 25, 2019. (DANIEL LEAL/AFP via Getty Images / Getty Images)
In fact, while a majority of consumers, about 85%, started their holiday shopping during Thanksgiving weekend, they were only halfway done, according to data from the National Retail Federation (NRF).
Uber Connect first launched in 2020. However, the service was designed so that users could request a driver to transport packages to a person waiting at a designated dropoff location. They could also request a package to be sent to them from a designated sender. However, this is the first time users will be allowed to have items picked up directly from a store.