Uber vs. TaskRabbit: Can the Uber App Compete With Its New Line of Chore Services?

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Uber appears to be developing a new service called “Chore.” The service would work like TaskRabbit — Uber users can hire “taskers” for various small jobs. Will the Uber app compete with TaskRabbit, or is this new feature an unnecessary expansion of the Uber app?

Read: What To Do if You Owe Back Taxes to the IRS

Below, learn about Uber’s latest development and how it might help the app keep up with other rideshare and delivery services. 

Key Takeaways

• Uber’s developing “Chore” feature was discovered in hidden code strings in Uber’s iPhone app.
• As of September, 2023, Uber hasn’t commented on the code findings.
• Uber’s growth has slowed in the past few months.
• The home services market experienced a boom in popularity during the pandemic and is expected to keep growing.
• This new expansion may help Uber maintain its competitive edge.

Uber’s New Service: What Is Known So Far

Uber’s potential new feature, codenamed “Chore,” was discovered by developer Steven Moser within code strings in the iPhone app. Moser reported the discovery to Bloomberg in September 2023, and at that time, Uber declined to comment.

For those who are not coders, here’s what that means: Uber engineers are working on the development, but Uber Technologies has yet to officially announce the new feature. This isn’t the first time Uber’s code has leaked future updates — earlier this year, code strings revealed that Uber is working on a new AI feature to improve ordering with Uber Eats.

Based on Moser’s findings, it seems like Uber Chore will let Uber users request a service at a specific address, then pay a contractor based on how long the task takes. It is still unknown what kind of tasks will be available. Because Uber hasn’t announced the service yet, there is not an official release date. 

Why Is Uber Expanding? 

Why make the expansion into tasking services? Some economists suspect that Uber is looking for new ways to maintain its revenue growth. Uber — a 14-year-old company — recently shared its first quarterly operating profit, but the milestone was overshadowed by a sudden fall in its share prices. Its revenue growth has also slowed in the past few months. This slowdown could be due to competition from apps such as Lyft or rising inflation and economic uncertainty. 

It’s too early to say whether this expansion will help Uber keep its competitive edge. However, Uber’s last major expansion into the food delivery market with its Uber Eats service did help the company grow its revenue. The profit from Uber Eats helped Uber bounce back from its losses during the COVID-19 pandemic. There is a chance that developing a new service could counter this latest slowdown. 

What Is TaskRabbit?

Many people have compared Uber’s prospective new feature to TaskRabbit. However, TaskRabbit isn’t quite as popular as Uber, so you might not know how it works. 

TaskRabbit is an app that connects independent contractors to people who need help with basic tasks. Tasks might include home repairs, moving, heavy lifting, cleaning, furniture assembly and even standing in line. TaskRabbit was founded in 2008 and overhauled its business model in 2014, moving from a bidding model to a direct hire model.

Today, the app works like a rideshare or delivery service: you choose your contractor, schedule a time, and pay them when the job is done. TaskRabbit was purchased by IKEA in 2017, and has since focused on furniture assembly as a primary service.

Like Uber, Lyft, and other contractor services, TaskRabbit has benefited from the rise of the gig economy. Its popularity spiked in 2020 when more people turned to contract work. Economists expect the home services market, which includes TaskRabbit, to keep growing as gig work gains popularity. 

Is TaskRabbit an Uber Competitor?

Right now, Uber and TaskRabbit aren’t competitors. Uber is a rideshare and food delivery app, and TaskRabbit is a home services app. However, if Uber expands into the home services market with a service such as Chore, it could become a significant TaskRabbit competitor. It will also compete with Thumbtack, Angi, Fiverr and other task-based side hustle platforms. 

Uber vs. TaskRabbit

It’s still too early to say how Uber plans to compete with TaskRabbit and other home services apps. It is still unknown what services Uber will offer or how expensive they will be, so it’s hard to compare the two platforms. 

Here are a few considerations that might impact Uber’s competitiveness with TaskRabbit.

Uber Is the Bigger Brand

Uber is bigger and more well-known than TaskRabbit. It has 130 million active monthly users and generated a revenue of $31.88 billion in 2022. In contrast, TaskRabbit has around 2.1 million visits per month and an annual revenue of $50-$75 million. 

That means Uber has an advantage when it comes to marketing and brand name recognition. However, it doesn’t necessarily mean that users will choose Uber’s new feature over a longstanding task service such as TaskRabbit. 

TaskRabbit Is Backed by IKEA

Because IKEA owns TaskRabbit, it has an advantage when it comes to furniture assembly. IKEA directly connects customers to TaskRabbit taskers and offers discounts. This could help TaskRabbit maintain its popularity as a furniture assembly service, even if Uber offers furniture assembly. 

Uber Has Low Brand Loyalty

According to Statista, Uber’s brand awareness is at 92%, but its brand loyalty is 56%. In other words, only 56% of mobile users say they are likely to use Uber again. Users who have an issue with Uber’s customer service or features might be inclined to use another home services app. 

What’s Next for Uber?

Uber’s latest expansion is still in the early stages of development. It’s too soon to say if — or when — the app will launch its new Chore service. If it does launch the service, it could boost Uber’s revenue and bring the app into competition with popular gig platforms like TaskRabbit, Thumbtack and Angi. The success of Uber Eats suggests that an expansion could help Uber in the long run. 

So, can Uber compete with TaskRabbit? You’ll have to wait and see. 

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