Uber Eats eating restaurant profits.

Uvaman2

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https://www.news.com.au/finance/small-business/something-has-to-give-chef-claims-most-restaurants-arent-making-any-money-on-ubereats-and-deliveroo/news-story/2cfd4852fb8a119f9c1ac20609789a65

The article is from Australia, but I am sure it applies to US.
In summary it says Uber Eats and similar services takes a cut too big to make any money.

Personally, I don't use any of these services. When I have done my already to expensive eat out order basket, the fees and crap on top just stopped me in my tracks. I have learned to avoid all this services, Uber Eats, Delivery Dudes... Whatever.
I do wonder how these 'apps' can't make money (thinking Uber) or need such large cuts. I think an efficient operation should make money with a very small cut ( most of the money to the driver of course). A dollar an order should be a massive amount of money.. I am thinking even with less, and an efficient operation should still make money.
 

chameleoneel

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Its the fault of the restuarants for allowing Uber eats to bully them into commissions. What this should be, is simply paying an Uber driver to bring you food. You order the food and then pass the info to the driver. In other words, a completely separate transaction, from your order with the restaurant.
 
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pillagenburn

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Its the fault of the restuarants for allowing Uber eats to bully them into commissions. What this should be, is simply paying an Uber driver to bring you food. You order the food and then pass the info to the driver. In other words, a completely separate transaction, for your order with the restaurant.
but then Wall Street couldn't monetize it.
 

Dead Parrot

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I think the point of the article is the restaurants are the ones losing money. I can see why. If your Uber Eats contract doesn't allow you to charge a delivery fee or a higher food price, then Uber Eat's cut comes out of your normal price charge. Probably a rare restaurant that has a 30% true profit margin after covering cost of food stuffs, employees, utilities, rent/taxes, insurance, etc.

This sounds like an unsustainable model. The execs with Chief in their titles will walk away wealthy, everyone holding the stock when the music starts will get fleeced.
 

InorganicMatter

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Its the fault of the restuarants for allowing Uber eats to bully them into commissions. What this should be, is simply paying an Uber driver to bring you food. You order the food and then pass the info to the driver. In other words, a completely separate transaction, from your order with the restaurant.
The problem is, these "sharing economy" delivery businesses aren't profitable and never will be. It's why they do things like take a cut from the restaurant and skim driver tips.

A truly "honest" delivery platform would have to charge something like $10/order to stay in the black.
 

cyclone3d

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On top of what everybody else has already said, I have been in different fast food places when an Uber Eats or whatever food delivery service drives comes in to pick up an order.

Pretty much all of them around here that I have seen I wouldn't trust to not be messing with my food in some way or even not get some type of disease from the vehicle they are transporting it in.

No thanks.
 

Time2Kill

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On top of what everybody else has already said, I have been in different fast food places when an Uber Eats or whatever food delivery service drives comes in to pick up an order.

Pretty much all of them around here that I have seen I wouldn't trust to not be messing with my food in some way or even not get some type of disease from the vehicle they are transporting it in.

No thanks.
This is exactly why I refuse to use these services. I barely trust the people behind the counter making the food, and now add in some completely unscreened person into the mix. Yea, no thanks, I like my food not having dick cooties on it.
 

Time2Kill

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The problem is, these "sharing economy" delivery businesses aren't profitable and never will be. It's why they do things like take a cut from the restaurant and skim driver tips.

A truly "honest" delivery platform would have to charge something like $10/order to stay in the black.
How do pizza places and Jimmy Johns do it for like $2-$3 an order then?
 

Krazy925

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These services take $15 worth of food charge you $30 and deliver them cold.

They're also a hack job for the restaurant.

Interestingly enough though the drivers I've spoken to about it actually preferred delivering food to people, so you know that's a thing.
 

twonunpackmule

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This is exactly why I refuse to use these services. I barely trust the people behind the counter making the food, and now add in some completely unscreened person into the mix. Yea, no thanks, I like my food not having dick cooties on it.
I'm going to say that the average person isn't going to dick your food. When I worked at Chuck E Cheese almost 20 years ago...I was never asked if I dicked food. I mean, I did...but not everyone does.
 

Hatriot

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I love seeing the ultimate epitome of laziness and privilege griping about others making too much money. Not only have "families" gone from cooking at home to toddler rationalizations of eating out for 70% of meals, but now complaining about how a company NOW delivers that food straight to your doorstep. "Their greed" is less disgusting to me than this cultures embarrassing levels of slothfulness and waste. Que the attempts to fabricate adult sounding excuses why this is actually a more intellectual and responsible way of life. "Studies say...."
 

Jagger100

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Its the fault of the restuarants for allowing Uber eats to bully them into commissions. What this should be, is simply paying an Uber driver to bring you food. You order the food and then pass the info to the driver. In other words, a completely separate transaction, from your order with the restaurant.
RIght now they are trying to undercut the competition. They're doing that by forcing the restaurant to eat the extra cost.
 

Arcygenical

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I won't cook in restaurants that do any of these courier services. When uber invariably fucks up, who gets the blame? The restaurant. "The food was cold and greasy" - well, sadly, the colder the food the more seasoning is required, and the more oily the mouthfeel is. I see it all the time. Really good restaurants - dining in - get horrible reviews from takeout through these services.

I've been banned from skip the dishes as my ex was vegan, as we would always receive wrong orders, as it was SKIP's job to verify order accuracy. She can't eat mayo on a veggie burger, for example, due to a serious egg allergy.
 

Neslepax

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How do pizza places and Jimmy Johns do it for like $2-$3 an order then?
Because the delivery service is already factored into the price of your meal, and the better chains (like Domino's that is notoriously efficient) tend to plan out delivery routes better to save on cost. That is part of the problem here. Uber Eats wants to provide the delivery driver, take a large commission on top of delivery fees, but not allow the restaurant to raise prices to compensate. If that is how Jimmy Johns and Domino's functioned, they would have having the same issues as well.
 

cyclone3d

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How do pizza places and Jimmy Johns do it for like $2-$3 an order then?
Because the delivery people are already being paid around minimum wage + tips.

I worked at Domino's Pizza one summer while I was in college and that is how it worked.
 

LightsOut41

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Currently, all of these food delivery services are subsidized by investors. When those funds dry up, watch the delivery fees skyrocket.
 

sharknice

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Currently, all of these food delivery services are subsidized by investors. When those funds dry up, watch the delivery fees skyrocket.
Yeah seems like they're just expanding as much as possible while they have the backing and worrying about profits later. I'm sure long term plans involve more automation and ditching delivery drivers for self driving vehicles and drones.

I don't understand why any restaurant owner would agree to that shit deal though. I guess they're desperate or just foolish. Restaurant businesses have high turnover so it's not really that surprising a lot of them are making losing decisions like this.
 

Wrecked Em

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As far as I'm concerned, this is between the restaurant and uber. If no restaurants agree, I'll get off my ass and pick up my order myself. I have no reason beyond laziness to use uber eats anyway, even thought I use it frequently.


What pissed me off was door dash subtracting my tips from their drivers base fee.
 

seanreisk

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All I'm gonna say is, if you're a college student, and you're offered a job bartending at a popular bar, or delivering for Dominos... I'd take Dominos.

P.S. I knew a guy who delivered for Dominos while he was in college, and he and his girlfriend would try to take as many classes together as possible. She had a little table and a laptop for the passenger seat of his car, and they would ride together on the nights he worked and she would quiz him.
 
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This sounds like an unsustainable model. The execs with Chief in their titles will walk away wealthy, everyone holding the stock when the music starts will get fleeced.
if some random dude on a dead forum can research and figure out that this model is dead then so can everyone else holding stock lol. no one is forcing them to hold onto it. etrade exists.
 

dvsman

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I think alot of restaurants are worried / FOMO'ed - that if they don't agree to UberEats/whateverdelivery service and their competitor does, they will lose out on customers. Alot of people are switching to online ordering or app ordering, so 70% of something is better than 100% of nothing.

If your restaurant is already doing well and at capacity then yes, there's no point to Ubereats but alot of restaurants have slow days and that's what the app sales can fill in.
 

{NG}Fidel

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On top of what everybody else has already said, I have been in different fast food places when an Uber Eats or whatever food delivery service drives comes in to pick up an order.

Pretty much all of them around here that I have seen I wouldn't trust to not be messing with my food in some way or even not get some type of disease from the vehicle they are transporting it in.

No thanks.
Wow that's overblown LMAO
 

iDShaDoW

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Yea, all the delivery apps are ridiculous.

For example, GrubHub has higher prices on the app than the actual menu in the store I ordered from. Then throw in the delivery fee and having to tip the driver and you're easily paying 50-100% more for the food.

Only reason I actually use it is that my AMEX card gives me $10 credit per month on GrubHub so I just order food and opt to do pick-up.
 

Uvaman2

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https://www.usatoday.com/story/money/2019/07/31/food-delivery-drivers-admit-nibbling-your-food-study-finds/1875621001/

I have enough issue trusting the people working fast food not to fuck with it. Adding another person in the mix in their everyday car is a hell no.
Good lord @ the survey.... And thats the people that answered honestly... Its probably closer to 100% of driver fingering your food.
Screw this.
No wonder when staying in Texas in a hotel (hotel service was just to connect you to a delivery service for a bunch of restaurants)my fries did look like a lot less than what should have been ! Yeah...
 

SilverSliver

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I just started using Uber eats and have no issue with it. I stick to restaurants that already have an order to skip the 3.49 delivery fee, then it's just a tip on top of what my food would normally cost. Saves me 20-40 minutes. Totally worth it. I dunno how Uber or anyone else is making money, that being said.
 

blandead

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Instacart makes a bit more sense since that's delivering groceries instead of one meal but wow what a messed up system. Just hire a delivery person or two.
 
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