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Technology

Uber Eats introduces tiered pricing plan for restaurants

Operators can choose to pay either 15%, 25% or 30% per order, with higher fees bringing more robust marketing support.
Photograph courtesy of Uber Eats

Restaurants that use Uber Eats will now be able to choose how much they pay the delivery provider for its services.

The company on Monday unveiled a tiered pricing structure designed to make its fees more flexible and transparent. The three tiers closely mirror the ones instituted by competitor DoorDash in April. They are:

  • Lite: Restaurants pay 15% per delivery and get limited marketing support. Their restaurant will appear if a customer searches for it but will otherwise not be displayed on Uber Eats’ home screen or website. The restaurant can choose to pay extra for ads and promotions.
  • Plus: Restaurants pay 25% per delivery and will appear on Eats’ home screen or website. They will also be included in the company’s Uber Pass subscription program that gives benefits to customers. They’ll have to pay extra for ads and promotions.
  • Premium: Restaurants pay 30% per delivery. They get all of the marketing support of the other tiers, plus the company will match ad and promotional spending up to $100. If the restaurant doesn’t get 25 orders a month from Uber Eats, the company will refund their fees for that month.

All of the plans carry a 6% commission on pickup orders. And they determine how much the customer pays for delivery, with lower-tier plans pushing more of that cost to the guest. Restaurants can change their plan at any time. 

Previously, Uber Eats charged all restaurants a single “marketplace fee” that covered all of its services, from onboarding new drivers to technology and customer service. But after a year of testing and gathering feedback from restaurants, the company determined a new approach was needed.

"In late 2020 ... we began testing new ways to offer even more choice and control over the fees they pay and the services they use when working with us,” said Sarfraz Maredia, VP, US & Canada for Uber Delivery, in a statement. “Designed with input from thousands of restaurants across the U.S., we’re excited to make these new pricing options available nationally." 

Along with the new pricing, Uber Eats made another change based on restaurant feedback: It will no longer require restaurants to charge the same prices on Uber Eats as they do on their own menus. That will allow restaurants to charge more for items on Uber Eats which could incentivize consumers to order directly from them.

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