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Friday, May 31, 2019

Toronto restaurants are warning each other not to use Uber Eats

Toronto restaurant owners are warning each other not to partner with Uber Eats.

On the Food and Wine Industry Navigator Facebook page, which is an online gathering spot for many in Toronto's restaurant industry, one restaurateur asked for advice on whether she should sign her restaurant up with Uber Eats.

The responses highlight the sentiment that many restaurants in the city are displeased with the company along with other food delivery apps.

“They charge you a huge amount and charge the user while they’re at it," wrote one commenter.

"Unless you have a huge volume and low overhead it’s impossible to make money. Also any times you’ll get high volume orders are also times your kitchen is already busy, so now you need to choose between putting out food quickly for guests in house or for Uber clients.”

A few years ago, UberEats announced that they were updating their pay structure and splitting it into three parts: a pickup fee, a drop off fee and distance fees.

The Facebook thread confirmed that these changes resulted in Uber Eats taking a 30 per cent cut of all orders. One commenter explained that restaurant owners generally inflate their prices in order to offset the 30 per cent fee.

“If you would rather keep prices the same as in store (ethical but costly route), you need to look at Uber Eats as a loss leader for people who want to either try your food, order your food again, or because they cannot make it to your restaurant/store like normal due to scheduling reasons," the comment explained. 

"It's better for you to look at it from a marketing sense that people are willing to pay exorbitant costs just to have your food delivered to their front door.”

In an effort to diversify from the food delivery business, Uber Eats announced this week they're piloting a new pick-up feature that will pit them against Ritual and the other meal pick-up apps.

According to Uber Eats, 600 Toronto restaurants have already signed up to participate in the pilot.

by Hannah Alberga via blogTO

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