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How Much Commission Does Uber Eats Charge?

Uber eats driver on bike
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    The digital landscape has revolutionized the restaurant industry, particularly in the domain of food delivery. Among the giants in this space, Uber Eats has made its mark by offering a convenient platform for restaurants to reach customers. However, one crucial question often arises: How much commission does Uber Eats charge? In this comprehensive guide, we will explore Uber Eats’ commission structure, its impact on restaurants, and how alternatives like Easy Eats Online Ordering can help save on commissions.

    An Overview of Uber Eats

    Uber Eats is a globally recognized food delivery service, enabling users to order meals from local eateries through its intuitive mobile app or website. The service extends to numerous cities worldwide, offering food delivery facilitated by Uber’s network of delivery partners.

    The Uber Eats Operation: How Does It Function?

    Uber Eats operates by creating a bridge between consumers and local restaurants via its mobile app or website. Customers can sift through various menus and place orders for delivery or pickup. Post order placement, the restaurant receives it and the preparation process commences. Restaurants can either have their own delivery personnel (which might lower delivery adjustment fees) or associate with Uber Eats’ drivers. The latter is a group of independent contractors who use personal vehicles to pick up orders from the eatery and deliver them to the consumer.

    Alternatives to Uber Eats: A Look at Options to Reduce Commissions

    Easy Eats Online Ordering System

    There are multiple alternatives to Uber Eats when considering online food ordering, some of which may offer lower service fees for businesses. These options include DoorDash, Delivery Easy, and Menulog. However, setting up your own delivery service or using a third-party provider like Easy Eats Online Ordering can also help reduce delivery fees and offer more control over the delivery process. Easy Eats stands out as a particularly appealing option for several reasons:

    1. Lower Costs: Easy Eats charges only 99 cents per order with no additional commissions, offering a significant saving compared to the up to 30% commissions charged by platforms like Uber Eats.
    2. Increased Control: By integrating Easy Eats with your restaurant’s website, you maintain complete control over your branding and customer interactions, avoiding the generic interface of aggregator platforms.
    3. Customer Data Ownership: Easy Eats allows restaurants to keep all customer data, enabling them to build direct relationships and market effectively to their customer base without intermediary barriers.
    4. Customizable Marketing Tools: Unlike Uber Eats, which uses its branding, Easy Eats lets you leverage your own customized promotions and loyalty programs, which can enhance customer retention.
    5. Simple Integration: Easy Eats integrates seamlessly into existing websites and systems, making it easy to manage without needing to juggle multiple platforms.

    Tips to Manage Uber Eats Restaurant Fees

    Implement Direct Orders from Your Website:


    Building your own branded restaurant mobile app and website with an online ordering option can help save on commissions. Promote Online Ordering: Use restaurant marketing software to spread the word about your online ordering option, motivating Uber Eats clients to order directly from your restaurant website. Avoid Sales Commissions: Treat your Uber Eats account as an auxiliary source of online orders, not your main one. Using a commission-free online ordering system, such as Easy Eats, can save hundreds monthly. Negotiate Commission Fees: Reach out to an Uber Eats representative and inquire if your business qualifies for a lower Uber Eats commission rate to avoid inflating menu prices to cover growing fees.


    Breakdown of Uber Eats Fees for Restaurants

    Uber Eats fees for eateries are calculated based on a commission system. The restaurant pays a percentage of the total order value to Uber Eats for leveraging its platform for customer reach and delivery facilitation. The commission fee can differ based on the agreement between the restaurant and Uber Eats, as well as the location. Generally, the standard Uber Eats commission rate is 30% of the total order value, excluding sales tax and driver benefits fee.

    Uber Eats Commission Rate: A Closer Look:

    The commission rates levied on eateries can fluctuate depending on the region and typically range from 15-30%, excluding payment processing expenses and service fees. This implies that for each order placed via the platform, Uber Eats deducts a percentage of the total sale as a commission.

    Comparing Uber Eats, Grubhub, and Doordash Commissions

    ProviderUberEatsEasyEatsDoorDashDelivery Easy
    CommissionsStarting from 30%Starting from 99 cents per orderStarting from 30%Starting from 30%
    Free TrialYesYesYesNo
    Customer data ownershipNoYesNoNo
    Your Own Branded Onle OrderingNoYesNoNo
    Your Own Website With OrderingNoYesNoNo
    Control Over Marketing ActivitiesNoYesNoNo
    Delivery ServiceYesYes* Wellington Only.YesYes



    Various food delivery systems allow customers to order food online from restaurants, each charging a commission fee for each order placed through them. The commission fee varies for each company and can also depend on the individual restaurant’s agreement with the company. In general, GrubHub and Uber Eats charge a fee of around 20-30%, while DoorDash’s commissions can rise as high as 40%.


    Why are Uber Eats’ Fees So High?


    High fees are a pressing concern for many restaurants working with Uber Eats, and here’s why:

    Competition Among Restaurants: High commissions and additional fees are the result of eateres having to pay more to reach a larger customer base and stand out from the competition. Uber Eats’ Delivery Fleet: Uber Eats’ fees are high due to their team of drivers who deliver orders directly to customers, which significantly increases expenses.

    System Infrastructure: Uber Eats is a subsidiary of Uber and uses the same infrastructure and technology, which is costly to operate.

    Uber Marketing Fees: Uber Eats indirectly markets itself when promoting restaurants, which significantly increases fees.

    The Impact of Uber Eats on Restaurants

    Uber Eats takes a significant percentage of the total order value as commission from each business. The high commission rate, coupled with additional fees for delivery, marketing, or other services, can substantially affect a restaurant’s revenue. Consequently, this can result in restaurants losing hundreds, if not thousands, of dollars from their revenue each month.

    Is Uber Eats Worth It for Restaurants?

    While Uber Eats can provide restaurants with a valuable source of additional revenue and increased exposure to new customers, the high fees and loss of control over customer data and marketing make it a double-edged sword. For many restaurant owners, the question of “How much commission does Uber Eats charge?” is a critical deciding factor when considering whether to use the service or explore alternatives like Easy Eats Online Ordering.

    Conclusion


    In conclusion, Uber Eats can take up to 30% in commissions from each food order, which can significantly impact a restaurant’s bottom line. However, alternatives like Easy Eats Online Ordering, which charges rates from 99 cents per order and no commissions, can help restaurants save on these costs. So, while Uber Eats may provide exposure and additional revenue, it’s crucial to weigh the costs and potential savings from using alternative platforms.

    Founded in Wellington in 2021 Easy Eats is 100% NZ owned & operated. Our mission is simple: to make ordering food easy and affordable while supporting local restaurants.

    Free Delivery With Frist Two Orders!

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