Strategic Marketing Analysis of Uber Eats in Australia: Navigating External Forces and Competitive Advantage 
 

1. Introduction

1.1 Objective of the Report

This report will analyse Uber Eats’ internal marketing and the outside business environment and then create a strategy suitable for Australia. It will try to spot Uber East’s strengths and weaknesses, main opportunities and important threats by applying Porter’s Five Forces and PESTLE & the 4P Marketing Mix.

1.2 Background on Uber Eats

Uber Eats began operating in Australia in 2016 and has since become the leading company in the online food delivery field. Using Uber’s resources, Uber Eats has established a reliable last-mile-delivery system for delivering food from restaurants to customers. They depend on mobile applications and the Australian gig workforce for delivering food (Kumari et al., 2025).

1.3 Justification for Focusing on the Australian Market

The use of smartphones, a digital economy and the diversity in food choices have made Australia’s on-demand delivery services powerful (Vij et al., 2020). Although Uber Eats faced strong competition and regular checks from regulators, it managed to stay in the lead, so it can be used as an example of how a company can adapt in a tough and strictly controlled market.

2. Analysis of the External Business Environment

2.1 PESTLE Analysis

2.1.1 Political Factors

The Fair Work Commission has attempted to standardize minimum remunerations and mandate certain benefits for platform-based employees, which is bound to increase operational costs (Department of Employment and Workplace Relations, 2023). And since Uber Eats’ has a multi-sided platform model, factors such as state-level transportation & food safety regulations also contribute to operational costs.

Additionally, owing to rising consumer awareness, politicians are under more pressure than ever to solidify data privacy compliance through legislations such as the Privacy Act 1988, and Uber Eats needs to maintain a strong rapport with the Australian government while retrofitting workforce model modalities to remain compliant yet competitive in such a complex, hostile territory (Kaplan, 2022).

2.1.2 Economic Factors

Australia’s urban density and high disposable income may have been the overlooked yet primary factors behind Uber Eats’ explosive growth. However, rising inflation and interest rates post 2023–24 have reshuffled consumer spending patterns toward essential/value-based consumption (Reserve Bank of Australia, 2024), and given the resulting wage stagnation and rising delivery costs, frequency of online orders could decline significantly. Increasing fuel prices and cost-of-living post the ’23-’24 inflation & interest rate hike would further reduce profit margins for delivery partners (Lefebvre, 2024), affecting delivery partner availability. While macroeconomic volatility presents operational risk, the cost elasticity of premium convenience may still favour Uber Eats in metropolitan centres. Strategic pricing and dynamic discounts are crucial to maintaining order volumes amid shifting economic conditions.

2.1.3 Socio-Cultural Factors

Australia’s multicultural society, especially in cities like Melbourne and Sydney, has created a demand for diverse cuisines (Smith, 2023), which aligns well with Uber Eats’ platform offering. Convenience and personalisation have become key drivers in food delivery preferences in Australia, particularly among busy urban consumers (Bates et al., 2023). Simultaneously, heightened awareness of sustainability and localism is shaping consumer expectations regarding packaging, sourcing, and ethical employment. Public criticism around gig worker welfare has spurred calls for platform accountability. To maintain social legitimacy, Uber Eats must demonstrate responsiveness to evolving cultural norms (such as promoting eco-friendly practices and transparent labour standards) to enhance brand perception in a values-driven consumption environment (Khalid, 2023).

2.1.4 Technological Factors

Technological infrastructure is a core enabler of Uber Eats’ business model. High smartphone penetration (92% in 2023) and widespread 4G/5G access facilitate seamless app usage across urban Australia (Statista, 2023). Innovations in AI-powered route optimisation and real-time tracking enhance delivery efficiency and user experience (Muthukalyani, 2023). However, data security and algorithmic transparency remain contentious issues, with growing regulatory focus on automated decision-making under the proposed Australian Privacy Reform Framework (Witzlab, 2023). Future competitiveness hinges on Uber Eats’ ability to balance innovation with ethical tech governance; especially in deploying machine learning systems for pricing, promotions, and driver dispatch without triggering public backlash. 

2.1.5 Legal Factors

Legal scrutiny of platform-based businesses in Australia has intensified, particularly around worker classification and consumer protection. The Fair Work Legislation Amendment (Closing Loopholes) Act 2023 introduces obligations for digital platforms regarding minimum standards, dispute resolution, and transparency (Australian Government, 2023).

Additionally, Uber Eats must comply with local food safety regulations, consumer guarantees under the Australian Consumer Law, and data privacy obligations under the Privacy Act 1988 and regulatory standards outlined by the ACCC (2023). Class action lawsuits over driver pay and public inquiries into gig economy practices highlight growing legal exposure (Rawling & Munton, 2021). Failure to adapt to evolving legal standards may result in reputational damage and operational restrictions.

2.1.6 Environmental Factors

Sustainability expectations are increasingly influencing consumer behaviour and corporate responsibility in Australia (Deo & Prasad, 2024). Uber Eats faces mounting pressure to address packaging waste, carbon emissions, and food sourcing transparency. State governments, particularly in New South Wales and Victoria, have enacted bans on single-use plastics, which impact restaurant partners and delivery practices (NSW EPA, 2024). Moreover, carbon-neutral delivery options and eco-labelling are becoming differentiators in competitive positioning (Howarth & Winfield, 2023). While Uber Eats has piloted electric bike and scooter incentives, scaling these initiatives will be critical to aligning with Australia's broader sustainability agenda and enhancing long-term environmental credibility.

2.2 Porter’s Five Forces Application

2.2.1 Threat of New Entrants

Barriers to entry are moderate. While platform development is capital-intensive, local start-ups can leverage niche cuisines or regional loyalty. However, Uber Eats’ scale, brand equity, and data advantage create defensive moats. Regulatory hurdles and logistics complexity further deter smaller players from sustaining operations at national scale.

2.2.2 Bargaining Power of Suppliers

Restaurants act as suppliers and hold moderate bargaining power. While Uber Eats offers visibility and customer access, commission fees of up to 35%-30% are often contested (Hospitality Magazine, 2020). Premium or exclusive vendors can negotiate better terms or multi-platform agreements. However, Uber Eats’ dominance in urban centres gives it significant leverage in most partnerships.

2.2.3 Bargaining Power of Customers

Consumers have high bargaining power due to low switching costs and multiple alternatives like DoorDash and Menulog (Bennet et al., 2024, Orr et al., 2022). Price sensitivity is growing, particularly during economic downturns. Loyalty is fragile, often driven by promotions or delivery speed (Bates et al., 2023). This dynamic pressures Uber Eats to continuously optimise user experience, pricing models, and promotional strategies.

2.2.4 Threat of Substitutes

Substitutes include traditional dining, home cooking, and emerging meal-kit services like HelloFresh (McKay, 2023). The pandemic normalised delivery, but rising costs may shift behaviour back toward offline options. Uber Eats must defend against substitutes through speed, variety, and experience; especially in value-driven segments where convenience alone is not sufficient.

2.2.5 Industry Rivalry

Competitive intensity is high. DoorDash, Deliveroo (pre-exit), and Menulog have all battled for market share for Uber Eats, and Price wars, advertising spend, and customer acquisition costs remain substantial (Williams et al., 2025; Cassano et al., 2024). Uber Eats retains a first-mover advantage and scale efficiency, but rivalry persists; especially as platforms differentiate on logistics innovation, exclusive partnerships, and ethical branding.

3. Marketing Mix Analysis for Uber Eats Australia (The 4Ps)

3.1 Product Strategy and Service Quality

Uber Eats offers a broad digital food delivery service encompassing quick-service restaurants, fine dining, cafes, and alcohol vendors. Its product portfolio is enhanced by in-app features such as real-time tracking, reorder history, and dietary filters, elevating convenience for diverse customer segments. The platform’s value proposition hinges on variety and speed, bolstered by exclusive deals with high-profile partners like McDonald’s and Guzman y Gomez (Uber Technologies Inc, 2024; Insider Retail, 2017).

Differentiation is maintained through user-centric innovations (such as AI-curated recommendations and contactless delivery) which improve satisfaction and retention. Uber’s 2024 Restaurant Pulse Check highlights that online delivery platforms are now central to revenue streams for many small Australian restaurants, especially post-pandemic (Uber Technologies Inc., 2024a). In Australia’s competitive market, quality is measured not only by food but by app stability, delivery reliability, and resolution speed for service issues, all of which shape perceived value (Bates et al., 2023). 

3.2 Pricing Strategy

Uber Eats employs a dynamic pricing model that adjusts delivery fees based on demand, distance, and time of day. While this maximises profit margins during peak hours, it can alienate price-sensitive consumers, especially amid economic strain (Omarli, 2023). To counteract this, Uber Eats Australia frequently deploys discounts, loyalty programs, and bundled offers to balance affordability with profitability.

From an operational standpoint, pricing must also account for commission structures and delivery partner compensation; both of which face regulatory and reputational pressures. Uber Eats must strategically calibrate its competitive base pricing to attract users, and experiment with premium features and surge pricing to boost revenue. However, such pricing strategies must be coupled with transparent communication to preserve perceived fairness and consumer trust.

3.3 Promotion and Communication Strategy

Uber Eats’ promotional strategy has been paid digital ads, social media campaigns, email marketing, and strategic partnerships (Bennet et al., 2025) so far, and recent collaborations with Australian influencers and sports leagues (e.g., AFL) have localised its brand appeal. While app push notifications does an acceptable job of personalising engagement, generating urgency and repeat users would require a more proactive approach such as seasonal campaigns or limited-time offers.

Uber Eats, however, seems not to comprehend how close culture and traditions reside in the heart of the Australians, especially around tone and cultural sensitivity; it invited a significant communication risk upon itself through campaigns such as the “Tonight I’ll Be Eating” series, which have drawn both praise and backlash (Bennet et al., 2025).

Missteps in such messaging can escalate on social media like bushfires, undermining brand credibility (Ngyuen, 2024). To mitigate these risks, Uber Eats must invest (financially, as well as emotionally) in competent marketing teams with adequate cultural acumen, and implement feedback loops to ensure promotional content aligns with regional Australian norms and values.

3.4 Distribution Strategy and Channel Optimization

Uber Eats’ distribution leverages a mobile-first interface and a GPS-optimised logistics engine that is entirely platform-based - orders are rerouted from customers to restaurants and then to delivery partners using the Uber Eats app. This step-by-step real-time tracking provides more transparency to the customers, and more control to Uber Eats through third-party integration with point-of-sale systems of restaurant.

In the Australian context (marked by sprawling suburban geographies) last-mile optimisation is critical (Butler et al., 2022) - based on proximity and efficiency, Uber Eats, therefore, uses adaptive algorithms to assign deliveries to available drivers, since delays, delivery accuracy, and partner reliability directly influence customer retention (Wu & Rojniruttikul, 2024). Enhancing distribution involves not just app functionality, but also recruiting and retaining a stable driver base, potentially through incentives or hybrid employment models that respond to emerging legal expectations.

4. Strategic Recommendations

•    Adopt a hybrid gig model to pre-empt regulatory disruption and improve worker retention.
•    Introduce a sustainability badge for eco-friendly restaurants and packaging to align with shifting consumer values.
•    Expand in underserved regional centres via dark kitchens and local partnerships.
•    Refine dynamic pricing transparency to reduce customer dissatisfaction.
•    Invest in inclusive, culturally sensitive marketing, particularly during national campaigns or holidays.
•    Ensure transparent compliance with evolving privacy and data protection standards, including proactive adherence to the Privacy Act reforms.
•    Scale carbon-neutral delivery options and phase in biodegradable packaging partnerships with restaurants.
Uber Eats’ planned expansion into 67 new regional towns aligns with these recommendations to pursue growth beyond saturated metropolitan markets (Uber Technologies Inc., 2024b).

5. Conclusion

Uber Eats remains well-positioned to lead Australia’s food delivery market, driven by platform innovation and urban consumer demand. However, long-term growth hinges on strategic adaptation to political, economic, and cultural pressures. This report has highlighted critical external forces and marketing mix variables that shape its operating context. By aligning its strategy with regulatory trends, ethical imperatives, and evolving customer expectations, Uber Eats can sustain its dominance while enhancing public legitimacy. 
 

Top Management Samples

References

Australian Competition and Consumer Commission (ACCC). (2023). Digital platform services inquiry: Interim report No. 7 – Online retail marketplaces. https://www.accc.gov.au/about-us/publications/serial-publications/digital-platform-services-inquiry-2020-25-reports/digital-platform-services-inquiry-september-2023-interim-report
Australian Government. (2023). Fair Work Legislation Amendment (Closing Loopholes) Act 2023. https://www.aimpe.asn.au/files/Closing_Looholes_Bill_as_passed_by_both_Houses_07_12_23_23105b01.pdf
Bates, S., Reeve, B., & Trevena, H. (2023). A narrative review of online food delivery in Australia: Challenges and opportunities for public health nutrition policy. Public Health Nutrition, 26(1), 262–272. https://doi.org/10.1017/S1368980020000701
Bennett, R., Alston, L., Zorbas, C., Wasnik, S., Lemke, C., & Needham, C. (2024). The healthiness of Australian food outlets available through online delivery platforms, by level of socioeconomic disadvantage and remoteness. Health & Place, 86, Article 103380. https://doi.org/10.1016/j.healthplace.2024.103380
Butler, L., Yigitcanlar, T., Paz, A., & Areed, W. (2022). How can smart mobility bridge the first/last mile gap? Empirical evidence on public attitudes from Australia. Journal of Transport Geography, 104, 103452. https://doi.org/10.1016/j.jtrangeo.2022.103452
Cassano, S., Jia, A., Gibson, A. A., Partridge, S. R., Chan, V., Farrell, P., ... & Jia, S. S. (2024). Benchmarking online food delivery applications against menu labelling laws: A cross-sectional observational analysis. Public Health Nutrition, 27(1), e101. https://doi.org/10.1017/S1368980024000673
Deo, K., & Prasad, A. (2024). Factors influencing green energy consumer behaviour in Australia. Journal of Cleaner Production, 460, Article 142609. https://doi.org/10.1016/j.jclepro.2024.142609
Department of Employment and Workplace Relations. (2023). ‘Employee-like’ forms of work and stronger protections for independent contractors. https://www.dewr.gov.au/download/15343/employee-forms-work-consultation-paper/33129/employee-forms-work-consultation-paper/pdf
Hospitality Magazine. (2020, May 11). Uber Eats drop commission fees to 30%. Retrieved from https://www.hospitalitymagazine.com.au/uber-eats-drop-commission-to-30/
Howarth, R., & Winfield, F. (2023). Marketing for a better climate. In R. Howarth & F. Winfield (Eds.), The handbook of carbon management (pp. 210–237). Routledge.
Inside Retail. (2017, May 11). Guzman y Gomez partners with UberEats. Inside Retail Australia. https://insideretail.com.au/news/guzman-y-gomez-partners-with-ubereats-201705
Kaplan, D. (2022). Consumer rights are gig workers' rights? Regulating the gig economy at the intersection of consumer protection law and employment law. Seton Hall Law Review, 53(1), 281–318. https://scholarship.shu.edu/cgi/viewcontent.cgi?article=2910&context=shlr
Khalid, A. (2023). Sustainable marketing and its impact on society: A study of marketing strategies and opportunities promoting eco-friendly lifestyle. SSRN. https://doi.org/10.2139/ssrn.4570227
Kumari, P., Somya, A., & Behera, J. (2025). Success stories of AI-integrated ghost kitchens: Revolutionizing food delivery via technology. In Impact of AI and the evolution of future ghost kitchens (pp. 107–142). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3373-0432-8.ch006
Lefebvre, M. (2024). A stronger safety net: The case for a community financial rights service for Queenslanders. The McKell Institute. https://mckellinstitute.org.au/wp-content/uploads/2024/09/Stronger-Safety-Net-Report-Sept-2024.pdf
McKay, F. H. (2023). What's in a commercial meal kit? Structured review of Australian meal kits. Public Health Nutrition, 26(6), 1284–1292. https://doi.org/10.1017/S1368980023000265
Muthukalyani, A. R. (2023). Optimizing last-mile delivery in retail through AI-powered routing and scheduling. International Journal of Computer Engineering and Technology (IJCET), 14(2), 194–204. https://iaeme.com/MasterAdmin/Journal_uploads/IJCET/VOLUME_14_ISSUE_2/IJCET_14_02_019.pdf
Nguyen, L. K. C. (2024). Social media crisis management in the hospitality industry: Strategies for maintaining brand reputation and customer trust [Bachelor’s thesis, Haaga-Helia University of Applied Sciences]. Theseus. https://urn.fi/URN:NBN:fi:amk-2024112529916
NSW Environment Protection Authority (NSW EPA). (2024). Plastics bans guidance. https://www.epa.nsw.gov.au/Your-environment/Plastics/Bans-guidance
Omarli, S. (2023). Dynamic pricing strategy, impacts of fair pricing perception on consumer reaction (Doctoral dissertation, Corvinus University of Budapest). Corvinus University Repository. https://phd.lib.uni-corvinus.hu/1313/1/Omarli_Sevinj_den.pdf
Orr, W., Henne, K., Lee, A., Imad Harb, J., & Alphonso, F. C. (2022). Necrocapitalism in the gig economy: The case of platform food couriers in Australia. Antipode, 55(1), 254–274. https://doi.org/10.1111/anti.12877
Rawling, M., & Munton, J. (2021). Proposal for legal protections of on-demand gig workers in the road transport industry [Report]. UTS Faculty of Law. https://opus.lib.uts.edu.au/bitstream/10453/147286/2/TEACHO%20Report%20-%20%20Final%2027012021.pdf
Reserve Bank of Australia. (2024). Statement on monetary policy – February 2024. https://www.rba.gov.au/publications/smp/
Smith, K. (2023). Scaling up civic food utopias in Australia: The challenges of justice and representation. Sociologia Ruralis, 63(1), 140–159. https://doi.org/10.1111/soru.12368
Statista. (2023). Smartphone penetration rate as share of the population in Australia in 2017 with an estimate until 2026. https://www.statista.com/statistics/321477/australia-smartphone-user-penetration/
Uber Technologies Inc. (2024, December 17). Macca’s and Uber One: A match made in drive-thru. Uber Newsroom Australia. https://www.uber.com/en-AU/newsroom/maccasuberone/
Uber Technologies Inc. (2024a). Restaurant Pulse Check 2024: Understanding small business resilience in Australia. https://www.uber.com/en-AU/newsroom/pulsecheck2024/
Uber Technologies Inc. (2024b). Uber Eats expands to 67 new regional locations across Australia. https://www.uber.com/en-AU/newsroom/eatseverywhere-2/
Vij, A., Ryan, S., Sampson, S., & Harris, S. (2020). Consumer preferences for on-demand transport in Australia. Transportation Research Part A: Policy and Practice, 132, 823–839. https://doi.org/10.1016/j.tra.2019.12.026
Williams, P., McDonald, P., Stewart, A., & Mayes, R. (2025). Digital platform work in Australia: Findings from National Prevalence Surveys in 2019 and 2023 (QUT Centre for Justice Briefing Paper No. 70). Queensland University of Technology. https://doi.org/10.5204/book.eprints.256484
Witzleb, N. (2023). Responding to global trends?: Privacy law reform in Australia. In R. Ghosh & R. Jayaram (Eds.), Data disclosure: Global developments and perspectives (pp. 147–168). De Gruyter. https://doi.org/10.1515/9783111010601-009
Wu, Z., & Rojniruttikul, N. (2024). Factors influencing customer retention in the parcel delivery industry. In S. Kot, B. Khalid, & A. U. Haque (Eds.), Corporate practices: Policies, methodologies, and insights in organizational management (pp. 789–805). Springer. https://doi.org/10.1007/978-981-97-0996-0_48