Uber Technologies is witnessing stronger-than-expected growth in its grocery and retail delivery services, reinforcing its strategic push to compete more aggressively with rival platforms, particularly in competitive markets like South Africa. The company now projects its non-restaurant delivery services, which include grocery, retail, and convenience items, to reach an annual gross bookings run rate of $12.5 billion by the end of 2025, a 25% increase from the $10 billion forecast shared in May.
While full-year financial results won’t be disclosed until February 2026, Uber is offering this early projection to highlight the segment’s accelerating performance. This surge reflects the growing importance of Uber’s delivery unit, which now contributes nearly half of the company’s total gross bookings. Over the past three quarters, delivery has outpaced the growth of Uber’s core ride-hailing business, driven largely by increased demand for grocery and retail orders.
CEO Dara Khosrowshahi credited the segment’s success to “robust growth” in grocery and retail deliveries, as reported during Uber’s Q2 earnings call in August. However, he acknowledged that Uber still has significant room to grow, noting that 75% of its rideshare users have yet to try grocery or retail ordering via the app.
Rebecca Payne, Uber’s Group Product Manager for Grocery and Retail, noted that many users rely on the service for last-minute or urgent purchases, such as forgotten travel items or missing ingredients. The company revealed that Sunday evenings around 18h00 are peak times for grocery orders, with fresh produce being the most popular category.
To further drive adoption, Uber has rolled out weekly discounts on essentials like fruits, vegetables, meats, and dairy across several markets, including South Africa, the US, Canada, UK, France, Japan, Taiwan, and Spain. It also introduced new app features such as live order editing and preferred backup item selection, with plans to enhance substitution suggestions based on price, nutrition, and user history. Susan Anderson, Uber’s Global Head of Delivery, is expected to share more insights during her keynote at the Groceryshop conference in Las Vegas.
Competitive Landscape in South Africa
Despite Uber’s global push, its grocery delivery ambitions face stiff competition in South Africa. Local players like Mr D (partnered with Pick n Pay), Woolies Dash, and Checkers Sixty60 dominate the market. In June, SPAR partnered with Uber Eats to expand its 2U delivery service, offering access to SPAR and Tops! stores. However, Uber Eats also supports a broader range of retailers beyond groceries.
Still, Checkers Sixty60 remains the market leader, with Shoprite reporting a 47.7% increase in Sixty60 sales, totaling R18.9 billion for the year ending June 2025. The platform boasts 94% on-time delivery and 96.9% order fulfillment, reflecting its operational efficiency and customer satisfaction. According to World Wide Worx’s Online Retail in South Africa report, Sixty60 is the most popular on-demand grocery delivery service in the country.
Launched in 2020 during the COVID-19 pandemic, it quickly captured a dominant market share, now estimated at over 80%, leaving competitors scrambling to catch up. Uber’s challenge in South Africa will be to differentiate its offering and build deeper consumer habits in a market where convenience, speed, and reliability are already well-served by local incumbents.
