Uber privately testing massive merchant delivery service

Uber is already one of the hottest private companies in the world, but it is planning to become even larger with a move into home delivery services.

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The California based taxi service is privately testing a merchant delivery service, where it would deliver packages from companies like Louis Vuitton, Tiffany’s, Hugo Boss and Neiman Marcus to the customer’s doorstep.

The goal is to offer one-day delivery without all the extra costs, and it has been reported that Uber has interested 400 merchants accord. Uber has partnered with mobile shopping app Spring to deliver a small range of products.

Spring already allows merchants to add how much inventory it has on a weekly or monthly basis. By adding the daily amount, Uber will be able to carry the packages to the customer without the three day postal wait time.

“Experimenting and finding new, creative ways for the Uber app to provide even greater value to our riders and driver partners is a way of life at Uber,” said Uber’s spokesperson in a statement. “We have been piloting UberRUSH with multiple retailers for the last year.”

Uber will use the same drivers it uses for the commercial taxi service, but drivers will use a separate app for the merchant delivery services. This utilises the pre-existing drivers, instead of having to hire a whole new fleet of drivers to manage deliveries.

There are already other services like UberEATS, allowing people to order food and have it delivered to the curbside in Barcelona and Los Angeles. It is clear the taxi service wants to become more than just a taxi service, moving into deliveries and soon enough we might see transportation across long distance.

This brings Uber into the b2b market where it can work with merchants instead of customers. It also makes Uber a heck of alot more valuable, if it plans to take on FedEx, UPS and DHL. We still don’t know how heavily invested Uber is on deliveries, but it would tie into its plans to make taxi drivers earn more money through new services.