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Is Uber Eats worth it for restaurants while paying 30% commissions?

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AsStibelDude
651 Driver
 Posted 2 years, 8 months ago

Comments

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    kstark77
    100
     2 years ago

    I run a restaurant and it is sooooo not worth it.  30% commissions is super high.  Are you kidding me?  Maybe for pasta dishes that already have good margin but for steaks and seafood, paying 30% will make us lose money for sure.

    Of course, restaurants are allowed to charge whateve we want, but then we'd have to jack up our prices, and I feel like that is bad for the business and worsen customer perception of the restaurant.  My vote goes for NO.

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    DFosterG11
    187
     2 years ago

    Well, if you know anything about restaurant business, for takeouts, there is a decent profit margin, as those orders will not incur expenses for wait staff, space in the restaurant, parking spaces, etc.  Any takeout orders would be outside of their standing operational costs, so restaurants grealty welcome it. (Just cook and receive money.)

    Therefore, you'd think Uber Eats would be great for restaurants.  30% commissions?  That does seem high, but as long as the net covers the cost of the ingredients and chefs cooking the, there must be profit.

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      eyekeyah
      95
       2 years ago

      You sound like an expert. Please, tell us more.

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      ant
      122 Rider
       2 years ago

      Restaurants run on really thin margins as it is. I'd be surprised if even takeout orders come anywhere close to 30%.

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    joeyj
    423 Driver Rider
     2 years ago

    I can't believe any restaurant would agree to this.

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    ChrisNorway1
    57
     2 years ago

    Totally.  It is a great way to make additional money and also get the word out.  Sure there are commissions but you price your food correctly. People understand if your food costs more than usual.  They are getting the convenience.

    Like others have said, we love take out customers.

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      tabby
      172 Rider
       2 years ago

      It's a little rough since customers also have to pay a service fee to Uber. This is in addition to the 30% cut they take. Pretty good deal for Uber if you ask me!

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    bombazine
    79
     2 years ago

    Keep in mind this eliminates the need for delivery drivers too. 30% sounds like a lot but even if they make a tiny profit, they can do well on volume.

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      amcbeth
      343 Rider Driver
       2 years ago

      That's like an UberEats driver losing money on every eats trip, but making it up on volume of deliveries.

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    amcbeth
    343 Rider Driver
     2 years ago  (edited 2 years ago)

    Why would a restaurant pay 30% to Uber. They can just suggest on their takeout menu that their food can be delivered by UberEats.

    Zero commission is very good.

    If Uber makes a couple bucks on every delivery, that's fine with them, the only additional expense is computer time.

    Who gets squezzed here? You guessed it, the poor sucker that delivers the "eats".

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    HemiDodge
    361
     2 years ago

    It drums up the business as it is a new channel to gain customers.  It isn't shabby to have Uber promoting your restaurant.  

    See, our business spends a good chunk of change on advertisements and marketing.  So that will play into doing the math.

    Uber allows the restaurants to charge whatever we want, so we can assure we make profit.