Uber delivers beauty on demand

For $375, Postmates, which was purchased by Uber in November for $2.65 billion, is providing a package of 18 beauty goods delivered directly to customers’ doors. The package, which includes items from cult indie companies like Furtuna Skin, Summer Fridays, and Corpus Naturals, is a significant bargain compared to the in-store pricing (which is expected to reach $1,000).

Uber is branching out from its roots as a ride-hailing service. Its approach includes functioning as an ultra-flexible and quick delivery service to generate consumer loyalty. Uber feels that beauty companies may be a key part of the mix. According to Julie Kim, global head of membership, who joined the firm in February from Postmates, “service has become an overwhelming concern in the post-lockdown scenario.”

She claims that brands are investing in procedures and technological solutions to assure consumer reliability and convenience. “Uber Direct is a fantastic tool for retailers looking for a cost-effective approach to reach their customers.” Anyone who has an e-commerce platform may use our backend technology to provide same-day service.”

Uber and Postmates aim to offer a series of member-only experiences, the first of which is beauty-on-demand. Uber has also enlisted the services of additional beauty partners such as Dr. Barbara Sturm.

The Estée Lauder Companies became the first cosmetics company in the United States to hook up with Uber in May. Customers may use the Uber app to order ELC-owned products like Origins. Dr Barbara Sturm skincare is another new brand partner. Members of Uber’s Eats Pass (which provides unlimited meal delivery for a monthly fee) in Los Angeles may also order Sturm items, which will be delivered in 35 minutes. Members who spend more than $300 receive a complimentary anti-aging body lotion and cleanser.

According to Kim, these are the first in a series of member-only events planned by Uber. During the Covid-19 outbreak, prolonged lockdowns fueled a push by companies to reach clients wherever they were. “Our membership programs are designed to make our consumers’ lives easier,” she explains. “There is a greater understanding of the importance of speed and convenience.”

Uber launched Uber Direct in 2020, partnering with fashion and beauty brands such as Mac Cosmetics, Pixi, Le Labo, Honest Company, Fred Segal, and Zadig and Voltaire to complete deliveries that began on their own websites or apps. Uber charges a merchant fee that is negotiated separately with each brand.

A partnership with Uber is a first step towards on-demand services for many beauty businesses. JP Mastey, the creator of Corpus Naturals, a business known for its $24 natural deodorants, says, “We’re trying it to see how consumers react to ordering items on quick delivery.” He claims that Amazon has aided in changing the game. “When we first debuted in 2018, we chose to offer free domestic delivery to satisfy the expectations established by merchants like Amazon,” says the company.

People have grown accustomed to ordering and getting items within hours or minutes as a result of the epidemic. If that’s how people want to shop and consume, we’ll have to meet them there, and services like these are perfect for that.”

Uber isn’t the first firm to attempt to profit from on-demand delivery services, but it is the most successful. One of Uber’s first partners, Jo Malone London, has already left the site, while Uber’s Kim claims the partnership was only supposed to be temporary and was used to promote a Mother’s Day collection. “It’s critical for our customers to have a consistent and timely experience… In an emailed statement, Jo Malone London said, “We look forward to exploring other prospects in the future.”

According to Sucharita Kodali, vice president of retail at research firm Forrester, some beauty box businesses are also failing. “It appears like Uber is attempting to emulate Amazon, but they are not an operations firm,” she explains. “The most important questions are what is the consumer’s value and how much does it cost everyone?” Uber wants free stuff so it can add it to a loyalty program for as little money as possible. Uber is being asked by companies and stores to provide free promotion. Consumers are just interested in getting free items. How do you create a compelling offering that someone wants and is a win-win-win?” If everyone wants as much as possible for as little as possible, how do you produce a compelling product that someone wants and is a win-win-win?

Audrey Depraeter-Montacel, global beauty head at consulting Accenture, warns that convenience does not always equate luxury. “If you don’t make your customers dream about who you are, you’re going to have problems.” For years, Amazon has tried to break into the luxury and fashion industries, but I’m not convinced they’ve succeeded since they’re still seen as a handy platform.”

According to Kodali of Forrester, for Uber to thrive with on-demand membership, a loyalty program must provide a variety of incentives to attract regular use, such as grocery discounts, restaurant delivery, and access to streaming services. “Anything that is often used by their consumers.” According to Uber, its Uber Pass, Eats Pass, and Postmates Unlimited subscriptions already provide privileges such as free delivery.

According to Kodali, Uber’s operation will need to be smooth and in line with the inventory held by companies. “One of the biggest reasons local delivery services fail is that inventory information is inaccurate, and you end up disappointing the customer.” Uber will have to make things available while also ensuring that they are accurate. It’ll be a disaster if shops don’t get their stocks correct.”

Uber intends to select each collection in collaboration with various tastemakers. “We’re not necessarily getting income from this,” says Corpus Naturals’ Mastey, “but we’re gaining awareness because the product is going into the hands of influencers who will give us visibility.”

According to Accenture’s Depraeter-Montacel, Uber might assist to tackle one of the beauty industry’s major problems: maintaining customers who make repeat purchases. “That is the ultimate aim that all brands strive towards. Of course, they’re all attempting to grow their databases and reach out to millennials, but the cost of acquisition is generally significant, and revenue comes from recurring customers.”

In November, Uber aims to unveil further advantages and collaborations with companies.