Why Uber's Latest Move Could Be Good News for Your BusinessThe transportation technology giant today officially launched UberRUSH, an on-demand delivery service.

ByCatherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock

Uberis inching closer toward its plan of dominating every segment of the transportation industry.

Today, the San Francisco-based ridesharing company officially unveiled its on-demand delivery service UberRUSH in San Francisco, New York and Chicago.Uber has been experimenting with pilot programs of the delivery programsince at least last summer when it partnered with a handful of New York City-based businesses, including Rent The Runway, Birchbox and Baublebar.

UberRUSH will pick up and deliver everything from a meal to an item of clothing to a bouquet of flowers. Deliveries are made by foot, bike messenger and car, depending on the location and delivery.

The target for UberRUSH is small businesses, as it gives them access to more customers without them having to manage the infrastructure of a delivery fleet.

Related:5 Entrepreneurial Lessons From Uber on Its 5-Year Anniversary

"If every local business delivered, we'd all save time and energy. But most simply can't,"says Uber in a blog post announcing the product launch. "Day-to-day operations are already complicated and delivery can cause all sorts of logistical headaches."

Pricing varies by city. In New York, a delivery that travels less than 1 mile costs $5.50 and each additional mile is $2.50. In San Francisco, deliveries start at $6 within a mile and each additional mile costs $3.

The product launch puts Uber squarely in the crosshairs of San Francisco-basedPostmates, an on-demand service that promises delivery of local goods in under an hour. The difference between Postmates and UberRUSH approach: Postmates is designed for users to search on its platform for local businesses that are part of its delivery ecosystem, whereas UberRUSH is positioning itself as the back-end infrastructure that small-business owners plug into when they have a delivery to make.

Related: What You Need to Know to Compete With the Surging Sharing Economy
Wavy Line
Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Editor's Pick

Related Topics

Business News

An 81-Year-Old Florida CEO Just Indicted for a $250 Million Ponzi Scheme Ran a Sprawling Senior Citizen Crime Ring

Carl Ruderman is the fifth senior citizen in the Miami-Fort-Lauderdale-Palm Beach metropolitan area to face charges in connection with the scam.

Business News

Taco Bell Slammed With Lawsuit Over 'Especially Concerning' Advertisements, Allegedly Deceiving Customers

The class action lawsuit claims the chain is advertising more than they deliver.

Business News

Body of Missing 27-Year-Old Goldman Sachs Banker Found in Nearby Body of Water

John Castic, a 27-year-old Goldman Sachs employee, went missing around 2:30 a.m. on Saturday after attending a concert at the Brooklyn Mirage in East Williamsburg.

Business News

Steve Jobs's Son Is Diving Into Venture Capital — and His Focus Hits Close to Home

Reed Jobs, 31, launched venture capital firm Yosemite, which already boasts $200 million from investors and institutions.

Money & Finance

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

企业家是不能过度指狗万官方望太多a company exit for their eventual 'win.' Do this instead.