Can Uber Eats help Allbirds turn a profit?

Allbirds, the sustainable footwear brand, has made a strategic move by partnering with Uber Eats, despite facing significant financial struggles. The company continues to prioritize sustainability in every aspect, from its products to logistics, and this collaboration further highlights that commitment. Through this partnership, Allbirds joins Uber Eats’ Climate Collection, a carefully chosen selection of eco-friendly brands available for delivery via the app.
As Uber Eats’ first and only footwear brand partner, Allbirds will leverage the app’s vast reach to offer customers rapid delivery options, enhancing the brand’s distribution strategy. To fulfill orders, Uber Eats will prioritize bike and electric vehicle couriers, to align with Allbirds’ environmental goals. Initially, deliveries will be available from four key stores located in San Francisco, Los Angeles, Chicago, and New York, with potential for future expansion.

Financial woes and risks ahead
This partnership comes at a challenging time for Allbirds. The company has faced a significant revenue decline in recent years. In 2022, Allbirds generated $297.8 million in revenue, but by 2023, that figure dropped to $254.1 million, reflecting a 14.7% decline. Further, its net loss has ballooned from $101.4 million in 2022 to $152.5 million in 2023. These financial setbacks have raised concerns about the company’s long-term viability.
While the partnership with Uber Eats aims to boost customer convenience and expand Allbirds’ reach, it also introduces significant risks. The added costs and operational complexities associated with on-demand delivery could further strain the company’s finances. Moreover, managing the logistics of on-demand delivery comes with its own set of challenges, particularly for a brand already grappling with financial difficulties.

A risky gamble or strategic opportunity?
The Uber Eats partnership presents a unique opportunity for Allbirds to revitalise its growth, but its success is far from guaranteed. Given the company’s ongoing financial troubles, this move may be viewed as a risky gamble that might not deliver the desired results. Only time will tell if this strategic move will ultimately pay off for Allbirds or if it will exacerbate their financial difficulties. 

Impressing the younger generation — the key to Allbirds’ future success
With Gen Y (Millennials), Gen Z, and Gen Alpha comprising approximately 65% of the U.S. population, their strong focus on environmental issues has made them natural supporters of brands like Allbirds. However, to maintain and expand this interest, Allbirds must do more than just champion sustainability — it needs to impress these younger generations with innovative, appealing designs.
While Allbirds has successfully captured their attention with sustainable materials, the next step is creating footwear that resonates with Gen Y and younger in terms of style. Comparisons to trendier brands, such as On and Hoka, suggest that Allbirds’ current designs may appear outdated or uninspiring, often resembling “dad shoes.” To stay competitive, Allbirds must embrace design innovation — whether by crafting trendy sneakers or developing futuristic styles that spark imagination. This shift could be the winning formula to not only increase revenue but also to pull the company out of its current financial struggles, securing its long-term success.