Uber set to launch food delivery service across Las Vegas Valley

Uber’s foray into the food delivery business across the Las Vegas Valley on Wednesday has Theo van Soest, co-owner of The Goodwich, salivating at the idea of attracting new customers — and a potential 15 percent bump in sales.

His business partner, Joshua Clark, is skeptical. He’s taking a “wait-and-see” approach to determine how much profit the downtown eatery will generate after forking over 30 percent of all delivery receipts to the new smartphone app known as UberEats.

On a $20 order, The Goodwich and about 150 other participating restaurants will have to pay $6 to UberEats.

“It’s got to be worthwhile from a marketing standpoint,” Clark said during a rare lull at the popular sandwich shop. “If Uber connects us to that clientele we wouldn’t normally get, then you can justify that expense to building our brand.”

UberEats officials confirmed more than 150 restaurants are expected to participate as part of Wednesday’s launch in Las Vegas, which joins more than 20 cities across the country that were gradually introduced this year to the ridesharing company’s latest venture. Other cities include Los Angeles, New York, Chicago and Dallas.

Uber might have the name popularity, but it’s too soon to predict whether the company will succeed in an increasingly crowded food-delivery market already occupied by popular websites and apps including Postmates, GrubHub, Seamless, BiteSquad and Yelp’s Eat24.

The service will be available on a specific UberEats app and also on the ridesharing company’s traditional app by clicking on the icon with a fork and knife. A list of restaurants within a four-mile radius will pop up, along with menus.

“We’ve been looking at what they do, as anyone would with competitors, but we’re focused on how we can be better,” said Chris Nakutis, general manager for UberEats.

Along with the name recognition that Uber brings to the table with its ridesharing app, company officials are hoping to stand out by waiving the $5 delivery fee for at least the first few days of operation, in hopes of generating a new batch of loyal followers in Las Vegas.

Company officials declined to speculate how many Las Vegas residents might download UberEats to their smartphones.

“Las Vegas has become a culinary capital over the last few years, so it’s a great place to launch UberEats,” Nakutis said. “We can understand the skepticism, but there’s also excitement because we’re launching a new product that our restaurant partners haven’t used yet. But we wouldn’t have this product if it didn’t work.”

Nakutis said that, unlike his company’s competitors, Uber has the advantage of having a built-in network of reliable drivers who can opt to drive food, passengers or both to their desired destinations.

Uber driver Howard Lewis said he’s noticed an uptick of out-of-town tourists who ask whether UberEats is available in Las Vegas, in hopes of sampling the local cuisine in the comfort of their hotel rooms along the Strip. “I always have to tell them that it’s not here yet, and they’re disappointed,” Lewis said, adding that he also plans to deliver food in his 2004 Chevy Malibu.

“I think the food delivery alone is going to be huge,” Lewis said. “I think I’m going to be pretty busy when this starts.”

Each of the participating restaurants are equipped with iPad computers that alert them to new orders. Restaurant employees push a button to dispatch a driver to deliver the food.

The ordering system is fairly intuitive and won’t require too much training time for employees, said Lorin Watada, co-owner of the Bachi Burger, Bachi Kitchen and Shoku Ramen restaurants in Las Vegas. The trick, Watada said, is balancing walk-in orders with a likely 8 to 10 percent increase in business he’s anticipating UberEats to bring to the the four restaurants.

“For smaller restaurants, it’s hard for us to get the type of marketing and advertising that we can get through Uber, so we’re looking for a positive experience with this,” Watada recently said just before the lunch rush at his first Bachi Burger in southeast Las Vegas.

“We take a lot of pride in what we do with the food,” Watada said. “Any help they can offer to bring in the customers is great.”

Contact Art Marroquin at amarroquin@reviewjournal.com or 702-383-0336. Find @AMarroquin_LV on Twitter.