UberEats Is Going to Take a Huge Cut from Restaurants for Delivering Food
Having conquered the business of delivering people from one destination to another, Uber hopes move on to delivering food – and the company is planning on charging rates that reflect it big name stature.
UberEats already exists in ten US cities, but currently only offers a limited menu of select dishes. However, according to the Wall Street Journal, in the coming weeks the platform will expand to its own dedicated app that will offer full menus from a wide variety of restaurants like a more traditional delivery service.
That might sound like good news for restaurants looking for additional ways to reach customers, but the revamped service is already garnering criticism after reports that Uber plans to take a larger cut from delivered bills than any of its competitors.
According to the New York Post, Uber will be requesting a 30 percent cut of the bill on orders they deliver. The Post claims that higher than the sites Seamless and Grubhub which fees in the 12 percent to 24 percent range. Meanwhile, 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. During a test run in Toronto, the full-service UberEats has been adding five bucks to each order.
Of course, besides brand recognition, Uber offers another benefit: drivers. Some of the sites mentioned above simply handle the ordering process; the restaurant still has to employee people to get the food to hungry customers. So replacing staff with a third party could be appealing. But then again, who do you trust more handling your food: a full-time delivery guy or some dude who is trying to earn some cash to cover the monthly payment on his new Hyundai?
Regardless of the answer, food delivery is a space that’s certainly rapidly expanding and evolving – as all those company names above attest to. It’ll be interesting to see if UberEats can find any traction or whether Uber will learn what it felt like to be Sidecar. RIP Sidecar. I never used you once.