Does Uber Eats charge a fee? (+5 Types of fees)

In this blogpost, we will explain if Uber Eats charges a fee. We will also mention the basic types of fees that customers will need to pay while using Uber Eats. In addition to this, we will be taking a close look at why On-Demand food delivery apps are actually so expensive. Finally, we will be describing a few ways through which customers can save money on Uber Eats.

Does Uber Eats charge a fee?

Yes, Uber Eats charges its users a fee. There are various fees in Uber Eats such as the cost of the food, the delivery fee, the service fee and even the tip of the driver. At certain times, depending on the situation, Uber Eats may add additional charges such as a busy fee, a delivery adjustment fee or a small order fee.

Basic types of fees in Uber Eats

While there are certain fees that are applied in only certain situations, there are fees that all customers need to pay regardless in Uber Eats. The basic types of fees in Uber Eats have been explored in the following section.

Cost of the food

The actual cost of the food in Uber Eats makes up the biggest chunk in the bill breakdown. The cost of the meal in Uber Eats depends mainly on the type of the restaurant that the customer is ordering from and the price range of meals there. The cost of the food in Uber Eats can be drastically reduced by means of promos and discounts.

Delivery fees

The customer also needs to pay a delivery fee in Uber Eats. This is applied to all users of the platform other than those who have purchased an Uber One membership. Even for Uber One members, the order subtotal must cross the minimum limit otherwise they will be charged a delivery fee. This fee depends on the location of the restaurant as well as the customer.

Service fees

There are also service fees in Uber Eats. This fee was brought up much later and according to sources, goes into the maintenance of the app and other costs that Uber Eats might incur. The service fee is approximately ten percent of the order subtotal and every customer needs to pay this regardless of their position.

CA driver’s benefits fee

Residents of California also need to pay a CA driver’s benefits fee, which is mandatory for all users of Uber Eats. The CA driver’s benefits fee is a by-product of Proposition 22 which brought about various benefits for independently contracted drivers and delivery drivers. This fee goes toward giving healthcare stipends and minimum earnings guarantees for these drivers.

Tip for the driver

While it is not exactly mandatory, a tip for the driver is also encouraged from every customer. The tips usually range from 10% to 15% of the order subtotal and can be added by the customer when they are paying for their order or even after the delivery has been completed. Uber Eats allows users to add tips for the deliveries for a period of 90 days after the completion.

Why are On-Demand food delivery apps so expensive?

On-Demand food delivery apps like Uber Eats can be darn expensive in the long run. The reasons why these apps are expensive are pretty much multifold. Two main reasons for their high costs have been explained in the points below.

Shortage in delivery drivers

It is no hidden fact that On-Demand food delivery apps live and thrive due to their delivery drivers. However, it is also a well-known fact that there is always a shortage of delivery drivers for these apps. While they don’t consider these drivers as full-time employees, they still have independent contracts which require them to be paid a decent amount which can increase costs.

Restaurants are charging more

Another reason for the high costs of these On-Demand food delivery apps is that the restaurants themselves are charging more for the customers. Inflation is the main culprit in this case and the ingredients that restaurants use to make their food orders have gone up in costs. Restaurants who have not had any business during the pandemic lockdowns have also increased their prices now.

How to save money on Uber Eats?

While there is no doubt that Uber Eats can be a tad expensive, there are surefire ways to save money on this app, such as,

  • Getting an Uber One membership which can save a lot of money that goes into delivery charges
  • Setting the filters in such a way that the most inexpensive restaurants are shown first
  • Avoiding the unnecessary fees such as the Busy fee by ordering at another point of time. The Small Order Fee can also be avoided by adding extra items to the cart
  • By using a cashback app such as Ibotta or Rakuten that can give a certain part of the order subtotal back
  • By referring others to Uber Eats which can give the customer a promo code through which more money can be saved

Conclusion

In this blogpost, we have explained if Uber Eats charges a fee. We have also mentioned the basic types of fees that customers will need to pay while using Uber Eats. In addition to this, we have taken a close look at why On-Demand food delivery apps are actually so expensive. Finally, we have described a few ways through which customers can save money on Uber Eats.

If you like this blogpost, please leave your comments and questions below.

Citations

https://en.wikipedia.org/wiki/Uber_Eats

https://www.crunchbase.com/organization/uber-eats

https://craft.co/ubereats

https://www.datanyze.com/companies/uber-eats/371475626

https://www.theverge.com/2019/3/19/18272791/uber-eats-new-booking-delivery-service-fees-confusion-meaning

https://www.newsweek.com/internet-questions-uber-eats-customer-showing-off-expensive-delivery-fee-1690299

https://www.foodandwine.com/news/delivery-app-prices-higher-fees-2021-pandemic

https://experience.foodboss.com/why-is-food-delivery-so-expensive-breakdown-of-food-delivery-costs/

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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.