Do restaurants lose money with Uber Eats? (+5 Pros for restauranteurs)

This post will discuss if restaurants lose money with Uber Eats. In addition to this, we will explain how restaurants can partner up with Uber Eats. We will also describe the advantages as well as the disadvantages that restaurants can experience when they become partners with Uber Eats.

Do restaurants lose money with Uber Eats?

Yes, restaurants can lose money with Uber Eats. Uber Eats charges every restaurant 30% of the prices that have been originally listed. Restaurants which use Uber Eats are mostly those which do not have their own delivery couriers. However, restaurants can make more money in the long run as partnering with Uber Eats can lead to a lot of promotion.

How to partner with Uber Eats?

Restaurants which want to promote their businesses through partnering with Uber Eats can do so through the steps mentioned below.

  • The restaurant owner will need to go to the Uber Eats app and fill out the sign-up sheet. Here, they will need to provide their store name and their store address. They also need to provide their own names, emails and phone numbers in this sheet.
  • Once this has been done, the Uber Eats team will assign someone to contact you and see if the match will be a successful one.
  • If the match is seen to be good, the restaurant can upload its menu to the app and go live on the Restaurant Dashboard.
  • It usually takes a few days to become a restaurant partner. Once everything is confirmed, the Uber Eats team will send a welcome kit which includes a tablet, restaurant software and even a professional photoshoot. This will be charged as a one-time activation fee. Going forth, Uber Eats will charge the restaurant a service fee for each order that has been placed.

Advantages of being a restaurant partner with Uber Eats

Even though restaurants might incur more expenses, many still prefer to partner with Uber Eats. Some of the advantages that restaurants can experience through a partnership with Uber Eats have been described as follows.

More orders can be placed for the restaurant

The great thing about partnering with Uber Eats as a restaurant is that the restaurant gets a lot more orders than usual through this app. Uber Eats has already established itself as a popular food delivery app. Since it has a huge customer base, chances are restaurants will also get a taste of the cake through this app.

Delivery personnel are quick to pick up and deliver

Uber Eats has a large fleet of delivery drivers who are independently contracted. This means that these delivery personnel are gig workers. However, they are still trained and equipped to do the job. The large number of delivery personnel means that the order will be picked up and delivered in a very short span of time, thus ensuring better quality of food.

There is a welcome kit here

Once Uber Eats partners with a certain restaurant, the team will reach out and provide a welcome kit at a certain fee. This welcome includes a tablet through which the restaurant process can become more streamlined. There will also be a professional photoshoot through which the restaurant can market itself on the app.

Ratings and reviews

Uber Eats thrives with the help of ratings and reviews from its customers. These ratings and reviews can also help the restaurants by pinpointing the dishes that are popular, which can further improve the restaurant’s exposure. These ratings and reviews can also show restaurants what they are doing wrong, which can help them make certain changes.

Great during a pandemic

The coronavirus pandemic brought many industries to their knees. The sector that took a big hit was the restaurant industry as dining-in options at restaurants was seen as unsafe. In this light, food delivery apps like Uber Eats and many others were lifeboats through which restaurants were able to market themselves.

Disadvantages of partnering with Uber Eats

Restaurants that partner with Uber Eats can also experience certain disadvantages or cons, such as the ones described below.

  • Restaurants can lose a lot of money when it comes to service fees in Uber Eats. Uber Eats collects around 30% of the order subtotal as its service fees. This is also applied to the customer. For many restaurants, this can be a huge sum, especially those who have just started their business.
  • Uber Eats uses independently contracted delivery personnel through which the orders are delivered. The thing about these drivers is that hardly any training is given to them in matters of professionalism and customer service. So, there is a chance that they might do blunders that can ruin the customer’s experience.
  • Customers in Uber Eats are also subject to hefty fees that can be discouraging for them. This is particularly during peak hours during which the customers need to pay a busy fee. This will demotivate them to order from the restaurant.

Conclusion

This post has discussed if restaurants lose money with Uber Eats. In addition to this, we have explained how restaurants can partner up with Uber Eats. We have also described the advantages as well as the disadvantages that restaurants can experience when they become partners with Uber Eats.

If you like this post, please leave your comments and questions in the space below.

Citations

https://www.forbes.com/sites/cameronkeng/2018/03/26/why-uber-eats-will-eat-you-into-bankruptcy

https://www.cnn.com/2020/11/27/business/restaurant-delivery-alternatives/index.html

https://joelleparenteau.medium.com/why-uber-eats-is-a-necessary-evil-9b1f329eedf0

https://money.howstuffworks.com/food-delivery-make-money-news.htm

https://www.eater.com/22228352/convenience-of-delivery-apps-destroying-restaurants-uber-eats-doordash-postmates

https://www.today.com/food/viral-post-raises-questions-about-how-much-restaurants-earn-delivery-t180675

https://www.wsj.com/articles/doordash-and-uber-eats-are-hot-theyre-still-not-making-money-11622194203

https://ride.guru/lounge/p/is-uber-eats-worth-it-for-restaurants

Hi, I am Charlotte, I love cooking and in my previous life, I was a chef. I bring some of my experience to the recipes on this hub and answer your food questions.