Uber Eats Taiwan
Economic Impact Report 2024
Executive Summary
Growing the Economy
Uber Eats helps to grow Taiwan’s economy.
Uber Eats generates significant returns for local businesses.
Connecting Customers to Local Businesses
Uber Eats connects Taiwanese businesses to a broader customer base.
Uber Eats therefore boosts revenues for Taiwanese businesses.
In the year to September 2024, we estimate that Uber Eats created NTD $15.5 billion in additional revenue for restaurants & merchants in Taiwan that they would not have earned through other channels.
Uber Eats is particularly supportive of small and medium sized businesses.
In the year to September 2024, we estimate that tens of millions of orders on Uber Eats were generated for small and medium enterprises.
Maximizing Convenience
Delivery apps are considered one of the biggest innovations in the last decade.
Consumers derive significant benefits from the convenience associated with Uber Eats.
In total, in the year to September 2024, we estimate that deliveries with Uber Eats are producing over NTD $17 billion in consumer surplus for eaters in Taiwan, the equivalent of 0.07% of Taiwanese GDP.
Uber Eats prioritizes the quality of the user experience.
Boosting Sustainability
Uber Eats has a role to play in helping businesses become more sustainable.
Consumers and Merchants agree there is work to be done to help Taiwan become more sustainable.
73% of people in Taiwan would support a move to give official recognition to sustainable businesses, and the same proportion say they would be more likely to purchase from businesses with this status.
Growing the Economy
Economists have long known the power of agglomeration to drive higher productivity and wages. The easier it is for people to connect with their local area, the more an economy grows. This effect can be derived from physical infrastructure; but it can also be the result of new technologies that help to better diffuse consumer spending power across the economy.
Across Taiwan, the platform economy has:
- Helped local businesses to grow. Helping to drive additional revenue for local businesses, and making cities more enjoyable and convenient for their residents.
- Increased safety and trust. By taking advantage of technologies, such as consumer based star ratings, app-based delivery platforms help Taiwanese consumers to more confidently try new restaurants and retailers.
- Provided thousands of people a flexible way to earn extra income. Making it possible to earn additional income on the side, or balance platform economy work with other responsibilities such as learning or parenthood.
In the year to September 2024, we estimate that Uber Eats will create NTD $86 billion in direct, indirect and induced economic value for delivery people, restaurants and other businesses.
What is economic impact?
Economic activity refers to the actions that involve the production, distribution, and consumption of goods and services.
- Production: Creating goods and services. This includes manufacturing, farming, mining, and other industries that produce tangible products, as well as services like healthcare, education, and entertainment.
- Distribution: Moving goods and services from producers to consumers. This includes transportation, logistics, marketing, and retailing.
- Consumption: The use of goods and services by consumers and businesses. This drives demand, which in turn stimulates further production and distribution.
Economic activity can be measured in various ways, such as Gross Domestic Product (GDP), employment rates, and business revenues. It reflects the overall health and dynamism of an economy.
Connecting Customers to Local Businesses
Uber Eats connects Taiwanese businesses to a broader customer base.
When using the Uber Eats platform, consumers are shown a list of merchants ordered by the users’ previous eating history and the strength of customer reviews, rather than the size of a business’ advertising budget. This means people across Taiwan can more readily discover new businesses.
This role for delivery apps like Uber Eats is not just theoretical. Every day, users on the Uber Eats platform discover a new local favorite. On average, Uber Eats merchants estimate that around a fifth (21%) of their customers come from Uber Eats, and merchants estimate they could lose 18% of their customers on average if they were to stop using the platform.
For many Uber Eats merchants, delivery apps are one of the primary forms of proactive advertising they use. 62% of merchants we surveyed said that they used word of mouth advertising, followed by 59% who said they used delivery apps as a form of advertising. This was followed by more traditional forms of advertising such as online search (41%) and social media advertising (32%).
Shi Yuan
Shi Yuan is a popular restaurant in the Taipei area. The family-run business has grown to three branches across Taipei and employs 45 people. Shi Yuan has worked with Uber Eats for six years, and has seen some major benefits from using the platform, especially the increased convenience it provides for their customers.
“In Taipei City, there is no one on the road after 8 o’clock, everyone has gone home to catch up on dramas and order delivery. So why order delivery? Because of the convenience.”
The team at Shi Yuan also highlighted the role that delivery platforms like Uber Eats can play in helping to expand their business’ profile, helping small businesses compete with their larger competitors on a level playing field. Businesses can get ahead based on the quality of their products, rather than just the size of their advertising budgets.
“All your business information will be seen from just a smartphone, and you are competing with 1,000 competitors at the same time. Your products need to be good enough to be listed among the top few restaurants on a smartphone screen.”
The team at Shi Yuan has tried various delivery apps, but ultimately settled on only using one platform – Uber Eats. They articulate the benefits of using a single platform over trying to use a variety of delivery services:
“With multiple platforms, you have to manage different customer service systems. For instance, if an item is sold out, you’d need to update it across multiple platforms, which can lead to errors. We’re already at full capacity, so working with multiple platforms wouldn’t benefit us.”
Uber Eats particularly helps small and medium sized businesses to grow.
of Uber Eats users have used the app to order food from a family-run business.
of Uber Eats users have used the app to order food from a small business.
Moreover, delivery apps like Uber Eats enable their merchant partners to offer deliveries at a more affordable price point while broadening their customer base. 37% of merchants we spoke to in our research said that, if Uber Eats did not exist, they would not offer deliveries.
Many businesses reported that they had saved money by using Uber Eats, thanks to lower delivery and advertising cost. Merchants told us they have used this money to re-invest in their business (34%), pass on these savings to customers by offering special promotions and discounts (33%), or to raise the wages of their staff (27%).
Cheng Xin Goose
Cheng Xin Goose has been operating in Taipei for over fifteen years. The company has grown to now encompass six branches across the city, and now employs over 50 people.
Prior to the pandemic, Cheng Xin Goose began to experiment with different delivery apps in order to expand its customer base. After trying a range of delivery apps, Cheng Xin Goose ultimately settled on Uber Eats as its sole delivery provider.
“We even attended one of their launch events … their general manager from Hong Kong came, and they invited us to their headquarters for a presentation. We were impressed by how large-scale their operation was, so we decided to join their platform and see how it went.”
Cheng Xin Goose reported that, once they started working with Uber Eats, the number of deliveries they completed increased. On average, Uber Eats merchants estimate that around a fifth (21%) of their customers come from the platform.
“[Our customer base] expanded because, even when we did our own deliveries, we could only serve the local area. Uber Eats’ reach is much wider.”
Alongside their foundational role in expanding the delivery range of smaller businesses, delivery apps such as Uber Eats also play a key role in enabling the discovery of new businesses by consumers.
“We’ve noticed a slight decline in orders post-pandemic because some customers prefer to come to the store now. Others who had never ordered from us before tried delivery, liked it, and then decided to visit the store in person.”
The team at Cheng Xin Goose also reported the ways in which, by allowing them to track where in Taipei they are seeing the greatest demand for deliveries, Uber Eats has helped inform business decisions by telling them where new branches could be successful.
“Since 30% to 40% of our business comes from delivery, Uber [analytical data] helps us target locations with strong demand. If we open a new store in an area they recommend, we can already expect 30% to 40% of our revenue from delivery there.”
Alongside this, Cheng Xin Goose benefits from Uber’s team of account managers, who can help guide small business growth by allowing them to ‘offshore’ their future planning analytics.
“For example, our Uber account manager frequently talks with us about potential new locations. They analyze data and suggest high-demand areas like Beitou, where [our] delivery orders are highest.”
Over the next few years, Cheng Xin Goose hopes to continue seeing rapid growth, supported by Uber Eats.
“We plan to stay in Taipei and hope to have a store in every district.”
Taiwanese businesses benefit from higher revenues through Uber Eats
Uber Eats supports the Taiwanese economy by providing consumers with a more convenient way to order food and essential items from local businesses. In our research, we found 48% of people said that the arrival of delivery apps has increased the number of times they order from restaurants.
These additional purchases are key to supporting businesses, increasing their revenues, and enabling job creation and economic growth. We estimate that the growth in the market associated with food delivery apps led directly to NTD $15.5 billion in additional revenue earned on the Uber Eats apps for restaurants & merchants in the year to September 2024. This would not have been earned through other channels.
Sweet Chestnut
Sweet Chestnut is a small business in Tainan, focusing on providing healthy lunch boxes for people in the city. With the support of Uber Eats, Sweet Chestnut was the third SMB brand in the city to reach over one million orders. Founded by a postpartum care worker, the business struggled at first, but utilized the exposure benefits of delivery platforms to help power their early growth.
“The first year wasn’t great, but things improved later. At first, Uber Eats didn’t bring in many orders, but over time, more and more customers discovered us through Uber Eats. Now, more people know about our restaurant.”
Sweet Chestnut continues to rely on a range of delivery apps for their orders. They feel that they benefit from the expanded customer base, although express a clear preference for the Uber Eats platform.
Once more, the role of delivery apps in helping people discover new restaurants shines through. Speaking about Uber Eats, the team at Sweet Chestnut said “It’s helped more people discover our restaurant … with Uber, if one person knows about you, soon 10 people will know. There’s a clear difference [with other delivery platforms].”
Uber Eats helps Sweet Chestnut reach new customers and, in turn, increase its revenue. This is because of the role delivery platforms play in enhancing restaurant discoverability, delivery range, and by making it more convenient for consumers to purchase goods.
“Most of the orders come through Uber because it’s convenient for customers. They can order from far away without needing to come to the shop. If they had to come here, they might think it’s too far.”
Sweet Chestnut’s plans for growth are promising, and the team plans to expand their business once they have found some additional kitchen staff.
“Uber orders have increased, and we’re always busy, so I haven’t had time to focus on opening a second store … it’s hard to manage without enough help.”
Uber Eats Merchants see a significant return on investment
Maximizing Convenience
Uber Eats makes it easier for consumers to access great food.
Food is important to people across Taiwan, and Uber Eats has played a role in transforming the country’s food and restaurants sector. By providing people with the convenience of ordering restaurant-quality food and groceries using their smartphone, delivery apps have forever changed the way people access food and essential items.
People across Taiwan agree. In our polling, we found that 45% of Taiwanese adults thought that the arrival of delivery apps had one of the biggest positive impacts on their dining experience over the last decade, ahead of the increasing number of restaurants available, or the increasing quality of food itself.
Among Uber Eats users, this sentiment was even more powerful. 65% of Uber Eats users said that the arrival of delivery apps had the greatest impact on their dining experience, far ahead of any other innovation.
Uber Eats in particular has become an increasingly important tool for consumers, along with other delivery apps. According to our research, almost half (48%) of people in Taiwan said they have used Uber Eats in the last year, and three-quarters (78%) of Uber Eats users said they order from the app at least once a month.
When we asked respondents why they choose to use Uber Eats, the main reason was the convenience the app provides (71%). This was followed by the greater variety of food available (45%), and quick delivery times (42%).
How much value does Uber Eats create for consumers?
We wanted to quantify how much users value the convenience, speed, and reliability of food delivery services provided by Uber Eats.
One of the most important measures of economic welfare is the “consumer surplus”. This is a standard measure of the consumer welfare created by a product, service or organization. It is the difference between the price the consumer is willing to pay for a service, and the price they actually pay for a service.
The price you pay for something is likely to be at least equal to the minimum value it creates for you – or you would not have chosen to buy it – but there is no reason the value it creates can not be significantly more than this. By totalling the surplus consumer value, we produce a measure called the consumer surplus.
In order to better understand this, we asked Uber Eats users how much they would have to be compensated to lose access to Uber Eats for the next month. We then used their answers to this question to help calculate the consumer surplus Uber Eats generates in Taiwan.
In total, in the year to September 2024, we estimate that deliveries with Uber Eats are producing over NTD $17 billion in consumer surplus for eaters in Taiwan, which is the equivalent of 0.07% of Taiwanese GDP.
Further information on how we calculate consumer surplus can be found in the Methodology.
Uber Eats prioritizes the quality of the user experience
The quality of the experience offered by delivery apps is an important part of the added value that these apps generate for the consumer. When we asked respondents what were the most important reasons they used Uber Eats, we found that good service, quick delivery times, and the existence of a seamless payment process were key motivators.
Uber Eats takes pride in the quality of the experience it offers to its customers. This is why 64% of people across Taiwan say they have a somewhat or very positive view towards Uber Eats, rising to 81% of those who have used the platform.
Boosting Sustainability
Uber Eats has a role to play in helping businesses become more sustainable
Uber Eats users are ahead of the pack in terms of making sustainable choices themselves. 90% of Uber Eats users we spoke to say they use eco-friendly options when making orders through delivery apps, such as asking for no disposable napkins or plastic cutlery.
Uber Eats’ Partnership with Gogoro
The global climate is changing. The Taiwanese Government’s net-zero emissions policy aims to see the country reach net-zero carbon emissions by 2050, in line with many other industrialised countries. Uber Eats, one of the largest food delivery platforms in Taiwan, has an important role to play in the transition to a low-carbon economy.
Uber Eats has partnered with Gogoro to respond to Taiwan’s net-zero ambitions and suggest to delivery partners to consider exploring electric bikes and battery-swapping schemes as an alternative to carbon-intensive alternatives. Worth almost NTD $1 billion, the partnership will involve:
- Giving delivery partners using the Uber Eats app the opportunity to access battery discounts with Gogoro.
- Within two months of the partnership announcement, the first 1,000 delivery partners who opt to participate, to benefit from the partnership will receive additional discounts when purchasing electric scooters, and additional incentives pursuant to the partnership for using electric scooters to complete deliveries using the Uber Eats app.
It is Uber and Uber Eats’ goal that by 2040 globally, all vehicles that use the platform to deliver food or to pick up passengers will be emissions free or electric vehicles.
Currently, almost 20% of Uber Eats deliveries in Taiwan are completed by low-carbon or electric vehicles.
Consumers and Merchants agree there is work to be done to help Taiwan become more sustainable
Methodolgy
Economic Impact
Total economic impact is calculated as the sum of:
- Driver and delivery partner earnings
- Indirect and induced impact of driver and delivery partner spending on vehicles.
- Induced impact of additional driver and delivery partner earnings
- Indirect and induced impact of restaurant spending via Uber Eats.
This measure is a gross estimate, looking at the total amount of economic activity supported by Uber Eats in Taiwan. It does not attempt to measure what would happen in a hypothetical where Uber Eats no longer existed.
Our modelling does not include the impact of Uber’s direct investment or employment footprint as a platform, or any spillover effect this has on the wider tech ecosystem.
Consumer
Following the methodology of Brynjolfsson, Collis and Eggers (2019), we asked riders and Uber Eats users a single discrete binary choice question in the form:
“Now imagine you had to choose between the following options. Would you prefer to keep access to Uber Eats or go without access to Uber Eats for one month and get paid NTD $X?”
The price offered was randomized between $10 NTD, $25 NTD, $50 NTD, $100 NTD, $200 NTD, $500 NTD, $1000 NTD, $2000 NTD, and $5000 NTD.
We then computed a logarithmic regression of the results of this poll to derive a demand curve and the total consumer surplus per user, taking the median as the headline measure. This was then scaled by the number of Uber Eats users.
