Lightspeed Announces Partnership With Uber Direct and Uber Eats Marketplace

Rhea-AI Summary

Lightspeed Commerce (NYSE: LSPD | TSX: LSPD) and Uber (NYSE: UBER) have announced a new partnership to integrate Uber Direct and Uber Eats into Lightspeed's platform for North American hospitality merchants.

This collaboration allows Lightspeed merchants to list their offerings on Uber Eats, accessed by millions of users, and use Uber Direct for cost-effective deliveries without investing in custom fleets. Lightspeed's President JD Saint-Martin emphasized the partnership's potential to address staffing and revenue margin challenges in the restaurant industry, while Uber's Bernie Huddlestun highlighted the rising consumer demand for express delivery.

The integration is now available to North American Lightspeed Restaurant customers, with plans to expand to additional markets. More information can be found on Lightspeed's website.

Positive

• Partnership with Uber provides direct access to millions of Uber Eats users.
• Integrated delivery solutions can reduce overhead costs for merchants.
• Potential for Lightspeed merchants to tap into new markets via Uber Eats.
• Addresses staffing and revenue margin challenges in the restaurant industry.
• Immediate availability of integration for North American customers.

Negative

• Potential reliance on a single delivery platform could pose risks if Uber faces service issues.
• No specific financial terms of the partnership disclosed, leaving revenue impact uncertain.
• Implementation and adaptation costs for merchants not clarified.

Financial Analyst

From a financial perspective, this partnership between Lightspeed Commerce and Uber could have significant ramifications. Lightspeed's integration with Uber Direct and Uber Eats might drive substantial revenue growth by expanding its merchant base and increasing order volumes. With millions of users on the Uber Eats platform, Lightspeed merchants can tap into a broader consumer market, potentially boosting sales.

Additionally, the partnership offers a cost-effective solution for direct-to-consumer deliveries by circumventing the need for merchants to maintain their delivery fleet. This can lead to lower operating costs and improved profit margins for Lightspeed's clients.

Investors should pay close attention to how quickly and widely this integration is adopted and its impact on Lightspeed's bottom line. In the short-term, we may see an uptick in share price due to positive investor sentiment surrounding this news. In the long-term, consistent revenue growth and enhanced merchant satisfaction could stabilize earnings, making Lightspeed a more attractive investment.

Market Research Analyst

From a market strategy standpoint, this partnership is a strategic move that aligns with the growing consumer demand for on-demand delivery services. Given that 75% of consumers expect express delivery, integrating with Uber provides Lightspeed merchants a competitive edge.

This integration not only broadens market reach but also enhances consumer satisfaction by offering seamless, reliable delivery options. For Lightspeed, this partnership can serve as a significant differentiator in an increasingly crowded market.

However, it’s important to monitor how effectively Lightspeed can manage and support this integration across its various markets. The success of this partnership will depend heavily on execution and the ability to maintain service quality as they scale.

Partnership provides Lightspeed hospitality merchants with direct access to Uber's extensive delivery network

MONTREAL, QC, May 23, 2024 /PRNewswire/ - Lightspeed Commerce Inc. (NYSE: LSPD) | (TSX: LSPD) the one-stop commerce platform empowering merchants to provide the best omnichannel experiences, and Uber (NYSE: UBER) today announced a new North American partnership to directly integrate Uber Direct and Uber Eats marketplace into Lightspeed's platform.

Through the partnership, Lightspeed will have built-in integrations with the Uber Eats marketplace and Uber Direct, Uber's white-label delivery facilitation service, enabling Lightspeed merchants to:

• List their menu offerings on and take orders from the Uber Eats marketplace, which is accessed by millions of monthly active platform consumers; and
• Take orders from their own branded website through Lightspeed's Order Anywhere, then access delivery via Uber Direct, allowing them to pay only the associated delivery fee without the added cost of developing their own custom delivery fleet.

The combination of solutions enables merchants to satisfy their customers' delivery demands, tap into new markets through the Uber Eats marketplace and reduce overhead on direct-to-consumer orders with Lightspeed Order Anywhere and Uber Direct.

"We are incredibly excited to be announcing this strategic partnership with Uber, as we believe it unlocks incredible value for our hospitality customers," said JD Saint-Martin, President of Lightspeed. "The restaurant industry continues to face significant challenges with staffing and increasingly narrow revenue margins. This partnership is an opportunity to provide our customers some relief in the form of a world-class delivery network and cost savings plan. We believe this is only the first step in a long-term relationship with Uber."

"On-demand delivery is now a core expectation for consumers, with 75% of them expecting express delivery as an option, and merchants are taking note," said Bernie Huddlestun, Head of Uber Direct for the US and Canada. "We're proud to partner with Lightspeed to offer restaurants solutions that meet their customers' needs and encourage repeat orders, while giving restaurants the flexibility to offer seamless delivery experiences in the way that works best for growing their business."

This integration is now available to Lightspeed Restaurant customers in North America with additional markets to follow.

To find out more about Lightspeed's integration with Uber Eats visit:
https://www.lightspeedhq.com/integrations/ubereats/

To find out more about Lightspeed's integration with Uber Direct visit:
https://www.lightspeedhq.com/integrations/uberdirect/

To find out more about Lightspeed's Order Anywhere visit:
https://www.lightspeedhq.com/pos/restaurant/order-anywhere/.

Lightspeed powers the world's best–restaurants and hospitality businesses, including: Fairmont Le Manoir Richelieu (La Malbaie), Taverne Atlantic (Montréal), Daniel Boulud Group (NYC), Alinea Group (Chicago), Big Mamma (Europe), Kei (Paris). Lightspeed Restaurant is currently available in Canada, the United States, the United Kingdom, France, Belgium, the Netherlands, Switzerland, Germany and Australia.

About Lightspeed

Powering the businesses that are the backbone of the global economy, Lightspeed's one-stop commerce platform helps merchants innovate to simplify, scale and provide exceptional omnichannel customer experiences. Our cloud commerce solution transforms and unifies online and physical operations, multichannel sales, expansion to new locations, global payments, financial solutions and connection to supplier networks.

Founded in Montréal, Canada in 2005, Lightspeed is dual-listed on the New York Stock Exchange and Toronto Stock Exchange (NYSE: LSPD) (TSX: LSPD). With teams across North America, Europe and Asia Pacific, the company serves retail, hospitality and golf businesses in over 100 countries.

For more information, see www.lightspeedhq.com.

Follow us on social media: LinkedIn, Facebook, Instagram, YouTube, and Twitter.

About Uber

Uber's mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 49 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.

Forward-Looking Statements

This news release may include forward-looking information and forward-looking statements within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as "will", "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of Lightspeed's management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward-looking statements contained in this news release, including, among other factors, those risk factors identified in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operations, under "Risk Factors" in our most recent Annual Information Form, and in our other filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, all of which are available under our profiles on SEDAR at www.sedarplus.ca and on EDGAR at www.sec.gov. Readers are cautioned to consider these and other factors carefully when making decisions with respect to Lightspeed's subordinate voting shares and not to place undue reliance on forward-looking statements. Forward-looking statements contained in this news release are not guarantees of future performance and, while forward-looking statements are based on certain assumptions that Lightspeed considers reasonable, actual events and results could differ materially from those expressed or implied by forward-looking statements made by Lightspeed. Except as may be expressly required by applicable law, Lightspeed does not undertake any obligation to update publicly or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Lightspeed Commerce Inc.

FAQ

What is the new partnership between Lightspeed and Uber?

Lightspeed Commerce and Uber have partnered to integrate Uber Direct and Uber Eats into Lightspeed's platform for hospitality merchants in North America.

How will the Lightspeed and Uber partnership benefit merchants?

Merchants can list their offerings on Uber Eats, access a large consumer base, and use Uber Direct for cost-effective deliveries without needing a custom fleet.

When will the Uber integration be available to Lightspeed Restaurant customers?

The integration is currently available to Lightspeed Restaurant customers in North America, with plans to expand to additional markets.

What challenges does the Lightspeed and Uber partnership address?

The partnership aims to help merchants tackle staffing issues and narrow revenue margins by providing access to Uber's delivery network.

What is Uber Direct?

Uber Direct is Uber's white-label delivery facilitation service, enabling merchants to manage deliveries without developing their own fleets.