New Delivery Fee Structure

August 26, 2019  /  Australia  /  News
Roll Out Schedule
Last updated: 26 November, 2019
How the new delivery fees work

The new delivery fees depend on the distance between the eater’s delivery address and your restaurant and the average cost of orders for your restaurant.

Q: Why are these new delivery fees being introduced?

We understand that affordability is a big driver for eaters. While they want the largest choice of restaurants, they also want affordable options delivered with the attributes of speed, convenience and reliability they’ve come to associate with the Uber Eats experience.

Now we’re exploring whether technology can help unlock more affordable delivery fee options for eaters, while still allowing them to access further away restaurants at a higher price. We hope this change will help to ensure the efficiency and sustainability of the Uber Eats marketplace.

Q: Won’t this mean my customers who live nearby are less likely to visit by restaurant in person?

We know eaters choose to order meals via online food delivery apps for a number of reasons, and we’ve seen that generally they have already committed to staying in – not eating out in person. By making food delivery more affordable for people ordering from nearby restaurants, we hope you might ultimately see an increase in the number of orders for your restaurant.

Q: Will the higher delivery fees reduce my order volumes?

We know eaters choose to order meals via online food delivery apps for a number of reasons, including to get their local favourites or to discover new restaurants. During the trial of the new delivery fees, we’ve seen some restaurants attract new customers with more affordable delivery pricing. We’ve also seen some customers located further away still willing to place an order with a higher delivery fee.

Q: What if my most loyal customers are all further away - will they stop ordering from my business?

The impact of these new delivery fees are being monitored. This will help us to see any changes in behaviour.

We value your feedback. Please email restaurants.anz@uber.com to provide us with more information on your individual situation so we can look into any concerns you may have.

Q: Is this fair for eaters who live further away?

The Uber Eats App is a fast and easy way for eaters to access the food they love. Every restaurant will have more than one delivery fee tier. Eaters will be able to see which restaurants have the lowest delivery fee for their delivery address upfront in the Uber Eats app.

Q: Does this change the cost of my arrangement with Uber Eats?

This change affects the delivery fee that your customers pay for delivery. Currently, if the cost you pay for delivery exceeds the amount the eater has paid you for delivery, then Uber discounts your service fee. This won’t change with the introduction of these new delivery fees.

Q: How are delivery fees determined?

The delivery fee applying to an order depends on the distance between the eater’s delivery address and your restaurant and the average cost of orders for your restaurant. Starting from 26th of November, Eaters in select cities in Australia and New Zealand may pay in addition a new busy area fee to a restaurant when they order during times of high demand.

Q: Will you be reviewing the new delivery fees in the future?

We will incorporate regular reviews of the delivery fees, and if price points change we will let you know by email.

Q: Where does the extra money from higher delivery fees go?

Both higher and lower delivery fees are being introduced to help unlock more affordable options for eaters, while maintaining their access to further away restaurants at a higher price. We hope these two factors will balance out and help ensure the Uber Eats marketplace stays sustainable and efficient for all participants.

Q: How do I know what fee an eater has paid?

When you receive an order, you will see the order total plus the delivery fee charged to the eater. Eater delivery fees will also show on your invoice, and individual order details can be accessed on Restaurant Manager.

Q: Does this affect how far my food can be delivered to?

The introduction of new delivery fees will not impact your current maximum delivery distance.

Please be aware that sometimes your restaurant’s maximum delivery distance will vary depending on current market conditions such as weather conditions, delivery partner availability and the time of day.

Q: I can see a nearby restaurant with a different delivery fee. Why?

The delivery fee charged on an order depends on the distance between the eater’s delivery address and your restaurant and the average cost of orders for your restaurant. As each restaurant offers different menu items and has a different average cost of orders, sometimes the delivery fees will differ between restaurants.

Q: Can I opt out of this change?

New delivery fees are intended to help find ways to maintain the efficiency and sustainability of the Uber Eats marketplace.

We value every restaurant partner and want Uber Eats to be a beneficial experience for all parties, so if you would prefer to opt out of this change and instead terminate your relationship with Uber Eats, please reach out to us via restaurants.anz@uber.com. This will mean your restaurant is removed from the Uber Eats app.

Posted by Uber Eats
Category: News