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UberEats Buys David Chang’s Food Delivery Service Ando

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David Chang's Ando announced that it would close on Jan. 22 after being purchased by UberEats. Ando was started in 2016 by Chang as a restaurant that only did deliveries in New York.

Chang is the owner of the Momofuku Group of restaurants.

Ando Acquisition

Chang announced the closure of Ando on its website, telling customers that it was due to the purchase by UberEats. Ando was started in 2016, initially using other services along with UberEats. Other delivery services were shut down or bought up by bigger companies.

"Starting Jan 22nd, 2018, we will no longer be serving customers in New York — online or via our Union Square location — as we will be immediately starting to integrate with UberEats," said a statement on Ando's website. The statement went on to thank the various customers that the restaurant served while it was open. The closing came suddenly, and customers may not have been prepared for it.

Friday was the last day of service for the restaurant at its Union Square location.

UberEats didn't acknowledge that they may be stepping into the food preparation side of things but did issue a statement on the purchase of Ando.

"We are committed to investing in technology that helps consumers, delivery and restaurant partners alike," said Head of Uber Everything Jason Droege. "Ando's insights will help our restaurant technology team as we work with our restaurant partners to grow their business."

UberEats Growth

While Uber is facing problems with the ride-hailing portion of its business, its food delivery business is booming.

"I think we'll be the largest food delivery company in the world this year," New Uber chief executive Dara Khosrowshahi said.

Rival companies such as Deliveroo and Amazon have been stepping in the food-making side. Uber's purchase of Ando may be the company following the same path as its competitors.

Deliveroo made its foray into food preparation when it acquired Maple to develop satellite kitchens to make food closer to where it is being delivered. Amazon Restaurants continues to gain restaurant partners, but as Amazon continues to gobble up companies such as Whole Foods, food preparation may be on the horizon for the company.

UberEats has also added new features to its app, including in-app reviews to help customers decide, schedule orders, and customize drop-off directions for drivers. UberEats is currently available in 71 cities and 24 countries.

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