Uber Eats drop commission fees to 30%

11 May, 2020 by
Hospitality Magazine

Uber Eats has confirmed the delivery platform will drop commission fees by 5% after growing calls from the industry.

The food delivery company released a statement today announcing a raft of measures in response to the current operating environment.

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Commission fees will decrease from 35% to 30% on a permanent basis.

“After careful consideration, we are lowering our standard rate by 5 percentage points to introduce a new standard fee ceiling of 30%,” reads a press release by Jodie Auster, Uber Eats Regional General Manager for APAC.

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“This is not a temporary reduction, we are making this change for the long term to relieve pressure on the bottom line of our restaurant partners.”

From 18 May, venues can use their own staff to make deliveries for orders made on the Uber Eats app.

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“Restaurants will be able to divert staff to deliveries and keep more people in work,” says Auster. “Importantly, restaurants can still use Uber Eats delivery partners during busy times – as a last minute fallback – when they can’t meet the demand with their own delivery staff.”

Operators will also be able to determine fees and delivery areas, with independent restaurants paying an 8% commission fee until 31 July, with the fee moving to 16% after.

Teamed with the temporary 0% commission pick-up option, which will expire on 31 July and move to 13%, Auster says the platform has now provided operators with more control over their takeaway and delivery offerings.

“There is now greater choice for restaurants with three different ways they can use the platform to build their business, with three pricing options,” says Auster.

“This is in addition to changes we have already made to give restaurants control over the pricing of their online menus.”