Let’s be real, it’s pretty awesome being able to order [online] your favorite food and have UberEats deliver it to your doorstep (or anywhere you desire, really), right? I mean, come on. You can be laid up in bed binge-watching your favorite show on Netflix and have UberEats bring you food without moving a muscle.
Now I don’t know about you, but that sounds pretty dope to me! However, notice I said, “me.” “Me” as in “I.” “I” am the CUSTOMER in this scenario, not the RESTAURANT. All I have to do is order/pay online. The restaurant has to make it as well as make sure its given to the appropriate delivery driver. So with that being said, if UberEats is so beneficial for customers, does that mean it’s just as beneficial for restaurants? You be the judge!
UberEats Demands Expensive Delivery Costs
Did you know… UberEats charges a restaurant 30% delivery fee? For example, if a burger joint charges $12 for a burger, UberEats would take $3.60 as a “delivery fee.” Also, UberEats does not permit restaurants to increase their prices to “cover” Uber’s cost. Thus, Uber is telling restaurants that they must “eat the cost and lose money or we won’t deliver for you.”
Fortunately, for restaurants, this steep delivery fee doesn’t apply to UberEats’ competitors. For example, brands like Delivery.com, DoorDash, Postmates and Caviar all take somewhere between 15 percent and 23 percent of the check. And these percentages are often in addition to a delivery fee.
There’s a Positive to Every Negative
Despite UberEats’ high delivery fee, there are actually ways restaurants can benefit from using third-party delivery systems. Some of these benefits include, but are not limited to:
- No tension of getting food delivered
- Extended customer base
- An easy and fast way of delivering orders
- Empowerment of small restaurant owners to work at a wider platform
- Given space to exhibit their market presence for better customer reach and online branding.
So.. there IS a positive to every negative! However, whether restaurants allow the pros to outweigh the cons or vice versa, is entirely up to them. This will vary among different restaurants depending on their needs and budget.
- Keng, C. (2018). UberEats. Why UberEats Will Eat You Into Bankruptcy. Retrieved from https://www.forbes.com/sites/cameronkeng/2018/03/26/why-uber-eats-will-eat-you-into-bankruptcy/#159f9f6221f6.
- Pomranz, M. (2017). UberEats. UberEats Is Going to Take a Huge Cut from Restaurants for Delivering Food. Retrieved from https://www.foodandwine.com/fwx/food/ubereats-going-take-huge-cut-restaurants-delivering-food.