That’s true. I’ve also noticed that. Absolutely disgusting. That ceo needs to be held accountable and imprisoned. It’s totally illegal and this thing in no way classifies as independent contracting because drivers can’t set their own rates
Been a huge gripe. I also want to customize when i receieve trips so i dont almost kill myself looking at the 4.50 for 15 miles while pulling into a neighborhood. Also want to customize the ping sound or remove it entirely.
The other day Uber had a McDonald's 1 mile away from my house at a 20$ delivery fee. First off whose paying that? And second there's absolutely no way they don't make money. Idk shit about business but theyre prolly paying themselves stupid amounts and saying the money "goes back into the business" so it doesn't count as profit. Literally the only way they couldn't be turning a profit on paper imo...
Hey be fair now. They have 2 half broken apps to maintain (at least where I’m from rides and eats are different apps) so clearly that’s what’s making them lose so much. We should all feel so bad for them. 😭
/s
Honestly I can see why with Uber lol. 80% of my orders are pure base pay well over $10. Ain't nobody taking no tips on Uber like doordash has manipulated drivers into doing
Press the 3 lined button on the top left of your screen. Account > Tax info > Tax summaries. There you will find a page that will show you your "gross earnings" which will not match up with your actual earnings. Your "expenses and fees" and your net payout. Mine say $19k, but I actually earned $16k. They charged $3k in fees (surprisingly half of what they charged last year, which I'm honestly very confused about. I made about 1K last year but they took 6K and fees from me =__=). The reason many newer drivers don't know about it is because you aren't going to really see it until tax season comes around. You get 100% of the pay that is offered to you at the offer screen. But prior to this Uber eats takes their cut (as if the customers aren't paying them enough fees as well as the restaurants). Imagine if they didn't how much more we could be making. For how many good paying customers wouldn't have to get their orders declined because of the company makes their order look bad 🤦.
I think they refer to the investor money used to get everything going. When they say no profit they mean when subtracted from those funds which im sure they have gotten back at this point.
I swear they capped us out at 20 an hour at some point too. The algorithm makes it practically impossible to get over 20 an hour now. I used to multiapp bc of this.
Unfortunately I just opened in November, I need to market to build a client base. I'm doing the same on DoorDash, which only charges you for actual sales not "views" like Uber. They are honestly the worst.
I agree, the Uber marketing is not worth it. Paying for views just because someone saw your brand name and then got McDonald's instead is insane.
You would 100% be better off spending that money on getting people to order directly.
It actually in a sense is a long term investment - nobody and I mean nobody cares about ads, but promotions on your favourite food app will put your place on the radar for both future indoor and delivery sales. I have found some decent places because of the promotions and have opted to stay as a loyal customer to them. No ad has ever convinced me to visit a place.
I’m a driver so I know how you feel about being charged. Uber only pays us $2 for add on deliveries and if the customer puts a higher tip they will pay us even less.
Make sure you put your Uber Stickers up in store. In my market I deliver at night and don’t do too bad.
I wish you luck I know it’s not easy.
I was a driver for many years and that’s why I’ve been in this group. I now help businesses get more customers and have better communication with those customers - without spending ANY money on ads. It sounds like you need a little bit of both new customers and the ability to communicate better(like letting your customers know about this issue). And my MONTHLY fees are less than what you just paid for one week of marketing. I can help you with paid marketing too, but you have to dial in the organic marketing portion first. And I’ll go above and beyond to make sure I take care of y’all since you’re a new business. Let me know if you’re interested, I can go over details whenever - and my inbox is open to anyone else interested as well.
The marketing is a complete scam. It may operate differently here in New Zealand, but we just turned it off after a year cause it was classifying every sale (including return customers that ordered every day) as a marketing sale and then charging commissions on them.
It's a lose-lose game. You have to be on delivery apps to ensure you're seen, given the amount of people who find you once via delivery and then come over in person. But the delivery apps charge insane amounts so you never actually make money on them.
Don't even get me started on how they start taking money from you without notice once customers claim they didn't receive something.
A fellow new food truck owner here and I can totally relate to your pain OP. Uber fees racks up like hell( commision, promotions & ads) but the truth is because of these aggressive commissions you still get some traffic through which you can atleast make some loyal customers but we have been on Skip and Doordash as well which charges a little less commission but no orders from their app as they do not let the new business to even pop up i believe.
Canadian food market is evolving like crazy where people want cheap food, large quantities and low delivery fees which practically allows only franchises to thrive and rack up losses, if required.
Also beware of their marketing budget: it says on website it on per day basis but actually it is per week basis so you would see that they make sure they charge you your whole week budget even if you run the ad only one day. They are pure evil and costs new businesses a lot.
It's so true, but I've had a different experience with Doordash, I set up their Storefront which basically lets me take online orders as if it was from my brand, no commission and only a processing fee, but is tied to my website, google and instagram ordering. It's actually worked out well. But I'm with you, our provincial, municipal and federal governments don't give a crap about small businesses and make no effort to regulate the industry to give us a helping hand.
We don't have it available here yet 😔 I was really hoping I could use them to cover my delivery. I am using DD Storefront as my online ordering platform from my website, only because they are integrated with my POS system so it streamlines the order process.
Some weeks I do make a little profit if they are "organic" sales, but if they are marketing sales I definitely barely break even. The only reason I'm paying for marketing is to get my name out there. However, I was quoted when setting up the marketing campaign that my expected sales would be 900$ a week, which is total BS.
I was quoted when setting up the marketing campaign that my expected sales would be 900$ a week, which is total BS.
Uber lies to EVERYONE. Drivers, customers, merchants, regulators. Eventually it will bite them in the ass with investors, but they haven't got caught yet. I can never figure out why some eager beaver (speaking of Canada) District Attorney hasn't taken them to court over deceptive business practices.
There are apparently a few class action lawsuits stemming from the pandemic, and in some provinces Uber commission has been capped at 15%. Just not in my province. I'm sure it won't be long until there is a class action here or some kind of legislative push. They are plain and simple crooks, but unfortunately understand human laziness and psychology very well. People don't use direct from vendor delivery service anymore unless it's a well known pizza chain or something.
Thanks for this!
I've stopped using Uber all together...eats, rideshare and delivery/driver.
If your spot is in Vegas, let me know and I'll be happy to support!
Exactly. IDK why you're down voted. This is probably the most real statement in this entire thread... Uber eats is a convenience and the company knows this. They will take complete advantage of that... If it wasn't a convenience then people wouldn't use it. It's the whole point of the app... These clowns don't get it.
It sounds like you’re biting from the hand that feed you. If you don’t like Uber Eats, I would encourage you to hire a part-time or full-time employee to conduct your deliveries. You’ll be paying 4 to 5 times out that amount. You’re probably one of those businesses that provides the lowest fare for your product delivery. It won’t be long before Uber drivers in your area catch on and then they won’t pick your orders up.
I don't understand how people think that restaurants have any control over Uber delivery fares, and this disdain for small business owners is really discouraging tbh. Drivers and customers complain all the time about the price gouging of these delivery apps, but when a restaurant, who's, is trying to bring awareness we get treated like we're not providing a service and that we somehow deserve to be taken advantage of. We are just people trying to carve out a living too. Without small business your local economy would collapse, I don't understand the misplaced sarcastic attitude towards small business.
Highly doubt you're actually going to do this but okay.
People use Uber as a convenience due to being lazy. It's the whole point of Uber. You're paying extra money for the convenience and Uber knows to take advantage of that.
If you didn't need the convenience you wouldn't have used them to begin with. Lol
The marketing fees on top of the commission are wild. That shit sent me through the roof when they ramped that up.
IDK if I would do this at a standard brick-and-mortar place, but for our ghost kitchen we increased all prices by 25% and then offered a 25% discount for every regular order. We include various "keep your money local, support local, etc" in our marketing and push the discount everywhere.
What is your marketing budget, you shouldn't compare that against other expenses when deciding if those expenses are worth it. Marketing should have its own valuation and measurement and often has an impact that is beyond the moment of the cost. You should really work with a small digital marketing agency to optimize your marketing investment.
You called that earnings so is that net of your other costs? (food, supplies, labor)
Right now you are showing uber took 27.88% of your earnings. That seems odd, so I think your actual revenue was much higher?
Is their take what you expected when you signed up? You didn't say (and they may tell you not to), but is 27.88% the correct amount? I know that Uber and Door Dash change from 10-30%. Or is it based on items? That's really the only thing to question here. Everything else looks as expected.
I would still ignore the marketing costs in this discussion. That really should be considered in a different way. Do you feel the marketing you paid for provided the value you expected?
The commission is not an issue, it's what I expected. The marketing sales however are not at all what they projected, my expected sales as quoted from Uber were 958$ a week, which you can see is less than half in reality.
Again, marketing as good as what you invest in it. If I was running a business, or even starting one up, I generally would try to avoid buying marketing from the same company who is motivated to do things that would make me spend more money with them. That's why I suggest working with a small digital marketing agency, one that would be appropriate for your current size and let them give you recommendations on where you invest your marketing dollars.
Google all day would send me adsense free dollars to spend on my video advertising but I had no way of knowing if it would be effective or if I invested some my own funds would that be wise. Thus I recommend professionals to help decide where the best investments are for my business. There may even be a subreddit where these folks hang around and might help you for free.
Do you get any customer data from UberEats? I.e. do you get email addresses or anything? If so,there is a lot more you can do than the piddling effort that uber puts into their marketing.
You get ZERO customer data from the delivery apps. Not even a phone number, no address of the delivery, nothing, just their first name. If you need to contact the customer the call is routed through a masking number. These companies have managed to flip it around to where the restaurant is paying to help the delivery company acquire and keep the data. It's truly wild how they have fundamentally changed the restaurant industry.
ETA: I guess it's not ZERO data, you get to see your top items, delivery zip codes, and feedback/ratings. But nothing to use for continued, targeted marketing.
Asking here because this is my only time seeing a restaurant owner proactively talking about their side of the Uber experience.
What exactly happens on your end if an order gets stolen, or if a driver collects the order but then unassigns themself from it? Do you have to address that on a case by case basis and roll the dice with support like we do for pickup issues? Are you penalized if you don't remake the order?
Good question, we are only responsible for missing/wrong items on an order and of course if there's a quality issue. We aren't penalized for any driver related issues, like delivered the wrong order, cancelled, spilled food. Since the driver accepts that they verified with the restaurant that they are collecting the right order. If I forget a drink or even if the driver forgets a drink, that comes off my earnings. I haven't had many reimbursements yet, so maybe there's more I don't know about.
I’ve always wondered from the business side what it’s actually like. Thanks for sharing. I enjoyed reading the comments.
If marketing told you that you would do x amount of sales and you did 1/3 so you get discount on next one? Prob not but I wonder if worth asking. And if you didn’t do marketing in other weeks how was your take home? Or has this been 3 months now?
Never sign up for marketing nonsense on these apps,as a small business you cannot afford the big spots. Without the marketing you paid, you would have had a net pay of $300 assuming the sales remain the same, which would be a 70% margin.
You are better of creating a Shopify page for your business where customers can place order, creating exclusive discounts and turning your walk in clients into referral generators.
If they aren't charging you per click, then they know no one is seeing that crap.
Do restaurants have the option of choosing promos on specific items? You would gain more eyes running a BOGO or two on items that don't cost much to make. When I used UE a lot would always search by deals.
Yes, you can build these types of things but they also charge $0.99 per BOGO redeemed even though it's the restaurant eating the loss of the BOGO item. BOGO is pretty much the only marketing we do on Uber now because at least the marketing cost is only incurred when someone actually orders.
Got you. Definitely notice an uptick in delivery requests for a restaurant when they have a BOGO running so send like it works without the cost of advertising. Especially if you have a promo to stack with it when ordering.
Exactly- The places that offer free items or $15 off kn orders over $50 stuff like that pushes me to order- Just for reference I order 4-6 times per week off UE
Another way to look at it: If you hadn’t sold that food thru Uber would you have sold it anyway? Remember there are many reasons people order for delivery.
As a former business owner myself, I would nudge you to consider that most of these orders are likely orders you would not have otherwise fulfilled.
I could be wrong, but that’s my opinion. So long as you are making more money than spending on the platform, you’d be better off sticking to it.
Especially since Uber Eats orders from first time customers are excellent warm leads to in-house customers.
I've thought the same thing. These restaurants will complain about it, but they're still obviously making money off the deliveries, and probably far more than they would if they had their own delivery service.
As far as I know, they can set their price to what they want on the apps. Delivery is, afterall, a premium service, so it'll never be as cheap as ordering it yourself and picking up/dining in.
I think we will be headed towards more restaurants dropping the services as the quality of drivers continues to drop and the prices continue to rise for the customers. I think it is one of those things where a lot of restaurants get FOMO if they aren't on the apps but I think that bubble will pop when the companies run out of the investment money that has allowed them to operate a last-mile delivery service for much less than the true cost.
You’re complaining about a service that you are still using. You’re dumb enough to actually pay them extra for “marketing.” If it’s not worth it to you then you wouldn’t use it. Adjust to the times or get left behind. Uber is your Marketing. Shouldnt be used for anything else.
I CANNOT BELIEVE THIS. Uber need to be sued and shut down. Bunch of thieves. I personally either order through the restaurant website or call, the greediness of that nasty man is unbelievable!!
Just a question. How much extra did the Uber orders bring in to the restaurant I'm not saying that those fees aren't high, but they are only fees you are paying because those orders came from Uber. So what percentage of those orders are the fees? For example, did the Uber orders total $500 and those were the fees for them?
If you really wanted anybody to take your final request seriously, then you wouldn’t be signed up to Uber in the first place. You deserve this. Die mad about it or forgo the garbage platform.
Not bad considering u would have hit the customer with the 30% fee that uber charges you, which mean that 30% extra was never yours to begin with. Plus u used another platform to advertise on, we all know advertising is not free unless u can get a bunch of mo*ons on facebook to like, share and comment on a facebook post u made for ur business. I hate uber just as much as the next guy but u telling people not to use uber meand drivers can't feed there families 🤔. Maybe i should just bad mouth ur business so u can't feed ur family? Yer?? The other thing i hate the most is businesses trying to play victim as well
Interesting take, but 1. We can't mark-up 30% only 15% or risk deactivation. 2. I don't control what Uber pays drivers, and if it wasn't for the mass hysteria of delivery apps, I would be more inclined to pay a full-time driver myself. 3. That marketing breakdown is from the Uber app itself not any other marketing campaign.
1...🤣 i don't believe that, the higher ur prices the more money uber makes. I doubt they would deactivate u for marking up ur own prices 🤦♂️🤦♂️. 2..... I never said u control how much drivers get paid, go back and read what i said 😁. 3......... Man u really need to go back and read what i said cause i never said the marketing they charged u was from any other marketing campaigns. U are really stuck in the victim mentality state of mind aren't u? The response u gave has "I'm the victim" posted all over it.
One thing i do find funny about this post tho is u put ur prices up in a heart beat and didn't even think twice about ur customers that are struggling to get through day to day life on the bear minimum wages they get paid. I guarantee u don't even pay ur employees above minimum wage pay rates either even after u put ur prices up, but yet u will scream u are the victim in all this? U want to be able to leach off another companies platform at no cost to u so u can build ur business and ur brand cause u want the world to revolve around u? Am i right or am i right?
Dude you know nothing about me or my business, I don't even take a salary, I only take what I need for day to day essentials, I have one employee that makes more than minimum wage (which is $15.75 here unlike the US standard of poverty wages) and only works 25hrs a week because he has a family, I work 60+ hrs a week, cleaning tables, prepping food, mopping floors, doing dishes, delivering catering orders and all additional marketing, accounting that goes along with starting a business. Do I put a delivery markup? Of course, if not I would be losing money on every order. So... Believe what you want.
This looks a lot like the restaurant fee breakdown when some place had put Grub Hub on full blast in the press. The fees are absolutely insane all around for both customer and restaurant. The drivereats the real cost of delivery with orders like this below.
https://preview.redd.it/0a8j8tv0rvdc1.png?width=1080&format=pjpg&auto=webp&s=8f44bf81006bdc6edccf309e1d0d2b18d2c19fa2
Edit: link to article with the Grub Hub story. Seems even worse than yours OP, they got a out $377 from over $1000 of orders. These services seem like a parasite for all.
[https://www.wxyz.com/news/coronavirus/viral-post-showing-grubhub-restaurant-fees-sparks-concerns-over-third-party-food-delivery-culture](https://www.wxyz.com/news/coronavirus/viral-post-showing-grubhub-restaurant-fees-sparks-concerns-over-third-party-food-delivery-culture)
Worked at a place where ubering entrees didn't make money. They had to get appetizers and extra sides to make any gains, apparently. But you have to have it.
What I really think might work or be an option, a local delivery collective. Where restaurants in a certain radius all chip in on a group of drivers, pay them a fair wage per hour + tips and share the burden. That way drivers would be certain to get a good volume of deliveries and restaurants wouldn't have to be burdened with paying a full salary and risk a lot of downtime. If I only had to chip in say 5$ an hour instead of 15$ I'd be way more willing to manage my own delivery.
I think a network of co-op drivers between group of restaurants might be an answer for real..
Like a driver group serving this region of restaurants.
Restaurant share expenses for wages and mileages reimbursements..
There should be like a code, put an asterisk to your name or something on UberEats that indicates it‘s possible to order from your restaurant directly without UberEats at a lower price, of course UberEats would never do something like that themselves but maybe it could just become an established thing regardless
You should fire them if it's not worth it. My BIL runs a food truck in a food park and he doesn't use them. Doesn't want there to be a different price for delivery as opposed to walk up and as a driver, I don't blame him.
Wow that’s criminal. Hopefully your shop gains traction so your marketing won’t be so high.
As a customer i order from restaurants that I’m unable to get to as taking an Uber there and back just doesn’t make sense so they only way id order from certain places is delivery.
Its better than not having your customer order from you but certainly a slap in the face when you get the payout
If i really enjoy a restaurant’s food then I’ll tell my friends and try to get to the shop to eat in and support. Hopefully this happen for you too and it is a good way to get your shop on peoples radar!
That's the reality unfortunately, word of mouth is the best advertisement, but it takes time. So for now, I will have to keep using them at least as a marketing tool even if it's a money pit. My whole point with this point was to show people that they really do screw everyone in the chain, customers,. drivers and the restaurants too.
It’s good to show stuff like this! It gives the customers more perspective and hopefully encourages to order through the shop, especially for those who’re picking up anyways.
I do t think u er is *that* bad for customer considering the delivery service and sometimes they hve great promos and bogo ..but not so great for the stores :(
Don't utilize Uber Eats they aren't forcing you or push the cost to the customer. Im a UE customer (I use to drive as a side hustle). I have no problem paying more if the food is good.
For an example Gallon of Lemonade at Chick Fil A is $8 / $10 in store. We pay $15 to have it delivered.
Customers understand that convenience cost.
Ummm. Sir/maam. UNLESS YOU CAN OFFER BETTER RATE DELIVERY SERVIC3S....WHAT WAS THE POINT OF THIS? ITS THIRD GRADE MATH THAT THE COST WOULD BE LOWER IF SOMEONE WENT AND GOT THEIR OWN SHIIT LOL
Your post irritated the hell out of me. Its pointless and offer no solution outside of you being mad about fees. Obviously the yelling did not get you to see that you are telling people to gett up take shower just to pick up food when all they want to do is skip a bathe and be lazy for the day. ITS A DELIVERY SERVICE THAT THEY ARE PAYING FOR MY GUY...DO YOU GET IT NOW.
FYI. If since you havnt done your research..u would know that they are overcharging in ever leg of the delivery process. I swear some of yall really make me wonder why I dont have a fortune 500 yet jeezus
They charge the customer insanely high fees, they charge the restaurant insanely high fees, yet drivers get paid $2 per delivery. Disgusting
You forgot *they charge drivers fees as well.
They steal from everybody. Guess they are not playing favorite if they treat everyone poorly.
For a lot of trips we get paid $0.50 per delivery.
That’s true. I’ve also noticed that. Absolutely disgusting. That ceo needs to be held accountable and imprisoned. It’s totally illegal and this thing in no way classifies as independent contracting because drivers can’t set their own rates
Been a huge gripe. I also want to customize when i receieve trips so i dont almost kill myself looking at the 4.50 for 15 miles while pulling into a neighborhood. Also want to customize the ping sound or remove it entirely.
Uber: "we only have losses". Like how? They just have 1 half broken app to maintain and a low paid support team.
The other day Uber had a McDonald's 1 mile away from my house at a 20$ delivery fee. First off whose paying that? And second there's absolutely no way they don't make money. Idk shit about business but theyre prolly paying themselves stupid amounts and saying the money "goes back into the business" so it doesn't count as profit. Literally the only way they couldn't be turning a profit on paper imo...
Hey be fair now. They have 2 half broken apps to maintain (at least where I’m from rides and eats are different apps) so clearly that’s what’s making them lose so much. We should all feel so bad for them. 😭 /s
Honestly I can see why with Uber lol. 80% of my orders are pure base pay well over $10. Ain't nobody taking no tips on Uber like doordash has manipulated drivers into doing
Lol so Uber charges feeds for the customers and the resturant . Massive robbery
And the drivers too
What fees do they charge the driver? I’m not arguing I’m sure you are right just not sure what you are referring to
Press the 3 lined button on the top left of your screen. Account > Tax info > Tax summaries. There you will find a page that will show you your "gross earnings" which will not match up with your actual earnings. Your "expenses and fees" and your net payout. Mine say $19k, but I actually earned $16k. They charged $3k in fees (surprisingly half of what they charged last year, which I'm honestly very confused about. I made about 1K last year but they took 6K and fees from me =__=). The reason many newer drivers don't know about it is because you aren't going to really see it until tax season comes around. You get 100% of the pay that is offered to you at the offer screen. But prior to this Uber eats takes their cut (as if the customers aren't paying them enough fees as well as the restaurants). Imagine if they didn't how much more we could be making. For how many good paying customers wouldn't have to get their orders declined because of the company makes their order look bad 🤦.
And still has never made a profit. Almost impressive they make no money from charging both sides of a deal.
That's intentional. Amazon started a trend of over leveraging investor money to massively grow ops
I think they refer to the investor money used to get everything going. When they say no profit they mean when subtracted from those funds which im sure they have gotten back at this point.
I swear they capped us out at 20 an hour at some point too. The algorithm makes it practically impossible to get over 20 an hour now. I used to multiapp bc of this.
It’s actually a commission they charge the restaurant.
If you are well known make sure you are operating under your own brand name in the Uber App and don’t opt in for the marketing - totally not worth it.
Unfortunately I just opened in November, I need to market to build a client base. I'm doing the same on DoorDash, which only charges you for actual sales not "views" like Uber. They are honestly the worst.
I agree, the Uber marketing is not worth it. Paying for views just because someone saw your brand name and then got McDonald's instead is insane. You would 100% be better off spending that money on getting people to order directly.
It actually in a sense is a long term investment - nobody and I mean nobody cares about ads, but promotions on your favourite food app will put your place on the radar for both future indoor and delivery sales. I have found some decent places because of the promotions and have opted to stay as a loyal customer to them. No ad has ever convinced me to visit a place.
I’m a driver so I know how you feel about being charged. Uber only pays us $2 for add on deliveries and if the customer puts a higher tip they will pay us even less. Make sure you put your Uber Stickers up in store. In my market I deliver at night and don’t do too bad. I wish you luck I know it’s not easy.
I was a driver for many years and that’s why I’ve been in this group. I now help businesses get more customers and have better communication with those customers - without spending ANY money on ads. It sounds like you need a little bit of both new customers and the ability to communicate better(like letting your customers know about this issue). And my MONTHLY fees are less than what you just paid for one week of marketing. I can help you with paid marketing too, but you have to dial in the organic marketing portion first. And I’ll go above and beyond to make sure I take care of y’all since you’re a new business. Let me know if you’re interested, I can go over details whenever - and my inbox is open to anyone else interested as well.
The marketing is a complete scam. It may operate differently here in New Zealand, but we just turned it off after a year cause it was classifying every sale (including return customers that ordered every day) as a marketing sale and then charging commissions on them.
That’s insane wtf
It's a lose-lose game. You have to be on delivery apps to ensure you're seen, given the amount of people who find you once via delivery and then come over in person. But the delivery apps charge insane amounts so you never actually make money on them. Don't even get me started on how they start taking money from you without notice once customers claim they didn't receive something.
Then they pocket that money too without refunding the customers
Wait we’re all loosing here lol??
A fellow new food truck owner here and I can totally relate to your pain OP. Uber fees racks up like hell( commision, promotions & ads) but the truth is because of these aggressive commissions you still get some traffic through which you can atleast make some loyal customers but we have been on Skip and Doordash as well which charges a little less commission but no orders from their app as they do not let the new business to even pop up i believe. Canadian food market is evolving like crazy where people want cheap food, large quantities and low delivery fees which practically allows only franchises to thrive and rack up losses, if required. Also beware of their marketing budget: it says on website it on per day basis but actually it is per week basis so you would see that they make sure they charge you your whole week budget even if you run the ad only one day. They are pure evil and costs new businesses a lot.
It's so true, but I've had a different experience with Doordash, I set up their Storefront which basically lets me take online orders as if it was from my brand, no commission and only a processing fee, but is tied to my website, google and instagram ordering. It's actually worked out well. But I'm with you, our provincial, municipal and federal governments don't give a crap about small businesses and make no effort to regulate the industry to give us a helping hand.
Did you use the DoorDash drive api for your website?
We don't have it available here yet 😔 I was really hoping I could use them to cover my delivery. I am using DD Storefront as my online ordering platform from my website, only because they are integrated with my POS system so it streamlines the order process.
Wow, now I understand. Everybody's getting fucked...what a twist.
Hahaha! What a twist, laughing my ass off
Are you making profit off of the Uber East orders or are you breaking even and just considering it as marketing to get new customers to try?
Some weeks I do make a little profit if they are "organic" sales, but if they are marketing sales I definitely barely break even. The only reason I'm paying for marketing is to get my name out there. However, I was quoted when setting up the marketing campaign that my expected sales would be 900$ a week, which is total BS.
I was quoted when setting up the marketing campaign that my expected sales would be 900$ a week, which is total BS. Uber lies to EVERYONE. Drivers, customers, merchants, regulators. Eventually it will bite them in the ass with investors, but they haven't got caught yet. I can never figure out why some eager beaver (speaking of Canada) District Attorney hasn't taken them to court over deceptive business practices.
There are apparently a few class action lawsuits stemming from the pandemic, and in some provinces Uber commission has been capped at 15%. Just not in my province. I'm sure it won't be long until there is a class action here or some kind of legislative push. They are plain and simple crooks, but unfortunately understand human laziness and psychology very well. People don't use direct from vendor delivery service anymore unless it's a well known pizza chain or something.
Thanks for this! I've stopped using Uber all together...eats, rideshare and delivery/driver. If your spot is in Vegas, let me know and I'll be happy to support!
I don't have a car. ubereats is convenient for me I wouldn't use it if I could just come and pickup food
Exactly. IDK why you're down voted. This is probably the most real statement in this entire thread... Uber eats is a convenience and the company knows this. They will take complete advantage of that... If it wasn't a convenience then people wouldn't use it. It's the whole point of the app... These clowns don't get it.
But always says they losing money uber is the biggest robbers still in business.
Why are you paying for marketing?!
It sounds like you’re biting from the hand that feed you. If you don’t like Uber Eats, I would encourage you to hire a part-time or full-time employee to conduct your deliveries. You’ll be paying 4 to 5 times out that amount. You’re probably one of those businesses that provides the lowest fare for your product delivery. It won’t be long before Uber drivers in your area catch on and then they won’t pick your orders up.
I don't understand how people think that restaurants have any control over Uber delivery fares, and this disdain for small business owners is really discouraging tbh. Drivers and customers complain all the time about the price gouging of these delivery apps, but when a restaurant, who's, is trying to bring awareness we get treated like we're not providing a service and that we somehow deserve to be taken advantage of. We are just people trying to carve out a living too. Without small business your local economy would collapse, I don't understand the misplaced sarcastic attitude towards small business.
That’s fair and I understand your point for sure
I'm glad you posted this. Today marks no more UE or DoorDash. This is just... absurd. Calling ahead and getting my ass off the couch.
Highly doubt you're actually going to do this but okay. People use Uber as a convenience due to being lazy. It's the whole point of Uber. You're paying extra money for the convenience and Uber knows to take advantage of that. If you didn't need the convenience you wouldn't have used them to begin with. Lol
The marketing fees on top of the commission are wild. That shit sent me through the roof when they ramped that up. IDK if I would do this at a standard brick-and-mortar place, but for our ghost kitchen we increased all prices by 25% and then offered a 25% discount for every regular order. We include various "keep your money local, support local, etc" in our marketing and push the discount everywhere.
What is your marketing budget, you shouldn't compare that against other expenses when deciding if those expenses are worth it. Marketing should have its own valuation and measurement and often has an impact that is beyond the moment of the cost. You should really work with a small digital marketing agency to optimize your marketing investment. You called that earnings so is that net of your other costs? (food, supplies, labor) Right now you are showing uber took 27.88% of your earnings. That seems odd, so I think your actual revenue was much higher?
Those numbers are directly from the Uber merchant portal weekly report. Earnings is total Revenue (from UberEats only not any other sources)
Is their take what you expected when you signed up? You didn't say (and they may tell you not to), but is 27.88% the correct amount? I know that Uber and Door Dash change from 10-30%. Or is it based on items? That's really the only thing to question here. Everything else looks as expected. I would still ignore the marketing costs in this discussion. That really should be considered in a different way. Do you feel the marketing you paid for provided the value you expected?
The commission is not an issue, it's what I expected. The marketing sales however are not at all what they projected, my expected sales as quoted from Uber were 958$ a week, which you can see is less than half in reality.
Again, marketing as good as what you invest in it. If I was running a business, or even starting one up, I generally would try to avoid buying marketing from the same company who is motivated to do things that would make me spend more money with them. That's why I suggest working with a small digital marketing agency, one that would be appropriate for your current size and let them give you recommendations on where you invest your marketing dollars. Google all day would send me adsense free dollars to spend on my video advertising but I had no way of knowing if it would be effective or if I invested some my own funds would that be wise. Thus I recommend professionals to help decide where the best investments are for my business. There may even be a subreddit where these folks hang around and might help you for free. Do you get any customer data from UberEats? I.e. do you get email addresses or anything? If so,there is a lot more you can do than the piddling effort that uber puts into their marketing.
You get ZERO customer data from the delivery apps. Not even a phone number, no address of the delivery, nothing, just their first name. If you need to contact the customer the call is routed through a masking number. These companies have managed to flip it around to where the restaurant is paying to help the delivery company acquire and keep the data. It's truly wild how they have fundamentally changed the restaurant industry. ETA: I guess it's not ZERO data, you get to see your top items, delivery zip codes, and feedback/ratings. But nothing to use for continued, targeted marketing.
Don't worry, Travis exited the company with over 2 billion dollars before uber ever made a dime in profits. The new ceo needs to beat that.
Asking here because this is my only time seeing a restaurant owner proactively talking about their side of the Uber experience. What exactly happens on your end if an order gets stolen, or if a driver collects the order but then unassigns themself from it? Do you have to address that on a case by case basis and roll the dice with support like we do for pickup issues? Are you penalized if you don't remake the order?
Good question, we are only responsible for missing/wrong items on an order and of course if there's a quality issue. We aren't penalized for any driver related issues, like delivered the wrong order, cancelled, spilled food. Since the driver accepts that they verified with the restaurant that they are collecting the right order. If I forget a drink or even if the driver forgets a drink, that comes off my earnings. I haven't had many reimbursements yet, so maybe there's more I don't know about.
I’ve always wondered from the business side what it’s actually like. Thanks for sharing. I enjoyed reading the comments. If marketing told you that you would do x amount of sales and you did 1/3 so you get discount on next one? Prob not but I wonder if worth asking. And if you didn’t do marketing in other weeks how was your take home? Or has this been 3 months now?
Never sign up for marketing nonsense on these apps,as a small business you cannot afford the big spots. Without the marketing you paid, you would have had a net pay of $300 assuming the sales remain the same, which would be a 70% margin. You are better of creating a Shopify page for your business where customers can place order, creating exclusive discounts and turning your walk in clients into referral generators. If they aren't charging you per click, then they know no one is seeing that crap.
Do restaurants have the option of choosing promos on specific items? You would gain more eyes running a BOGO or two on items that don't cost much to make. When I used UE a lot would always search by deals.
Seconding this. We rarely order, but the last few places to pop up on our radar to check out in person have been exclusively BOGO deals.
Yes, you can build these types of things but they also charge $0.99 per BOGO redeemed even though it's the restaurant eating the loss of the BOGO item. BOGO is pretty much the only marketing we do on Uber now because at least the marketing cost is only incurred when someone actually orders.
Got you. Definitely notice an uptick in delivery requests for a restaurant when they have a BOGO running so send like it works without the cost of advertising. Especially if you have a promo to stack with it when ordering.
Exactly- The places that offer free items or $15 off kn orders over $50 stuff like that pushes me to order- Just for reference I order 4-6 times per week off UE
I always do this with platforms like Groupon, Groupon charges business an insanely high rate, usually half of the sale price.
I take it you're third paragraph in this post is your marketing campaign slogan?
You are urging me to stop using UberEats. Well, I urge you to stop using UberEats.
Another way to look at it: If you hadn’t sold that food thru Uber would you have sold it anyway? Remember there are many reasons people order for delivery.
Or, Find one of the drivers that does a good job and pay them a reasonable rate to deliver for you.
As a former business owner myself, I would nudge you to consider that most of these orders are likely orders you would not have otherwise fulfilled. I could be wrong, but that’s my opinion. So long as you are making more money than spending on the platform, you’d be better off sticking to it. Especially since Uber Eats orders from first time customers are excellent warm leads to in-house customers.
They can charge up to 20% for the restaurants to be on Uber, then they will tell the restaurant you can up charge the customer what ever you want.
Unfortunately that's not what it's like, restaurants are charged 30% commission but can only increase prices online by 15% or risk deactivation.
So stop using ubereats.
Listen I'm not a business expert guy but if using UberEats is such a bad deal for you and losing you money then stop using it.
I've thought the same thing. These restaurants will complain about it, but they're still obviously making money off the deliveries, and probably far more than they would if they had their own delivery service. As far as I know, they can set their price to what they want on the apps. Delivery is, afterall, a premium service, so it'll never be as cheap as ordering it yourself and picking up/dining in.
I think we will be headed towards more restaurants dropping the services as the quality of drivers continues to drop and the prices continue to rise for the customers. I think it is one of those things where a lot of restaurants get FOMO if they aren't on the apps but I think that bubble will pop when the companies run out of the investment money that has allowed them to operate a last-mile delivery service for much less than the true cost.
You’re complaining about a service that you are still using. You’re dumb enough to actually pay them extra for “marketing.” If it’s not worth it to you then you wouldn’t use it. Adjust to the times or get left behind. Uber is your Marketing. Shouldnt be used for anything else.
I CANNOT BELIEVE THIS. Uber need to be sued and shut down. Bunch of thieves. I personally either order through the restaurant website or call, the greediness of that nasty man is unbelievable!!
I mean you can also choose not to sign up for this scam. On what basis do you sue on if the restaurant signed up for this?
Sued for what? Operating a business? They are up front with what they take out so there’s no thievery
Just a question. How much extra did the Uber orders bring in to the restaurant I'm not saying that those fees aren't high, but they are only fees you are paying because those orders came from Uber. So what percentage of those orders are the fees? For example, did the Uber orders total $500 and those were the fees for them?
If you really wanted anybody to take your final request seriously, then you wouldn’t be signed up to Uber in the first place. You deserve this. Die mad about it or forgo the garbage platform.
Not bad considering u would have hit the customer with the 30% fee that uber charges you, which mean that 30% extra was never yours to begin with. Plus u used another platform to advertise on, we all know advertising is not free unless u can get a bunch of mo*ons on facebook to like, share and comment on a facebook post u made for ur business. I hate uber just as much as the next guy but u telling people not to use uber meand drivers can't feed there families 🤔. Maybe i should just bad mouth ur business so u can't feed ur family? Yer?? The other thing i hate the most is businesses trying to play victim as well
Interesting take, but 1. We can't mark-up 30% only 15% or risk deactivation. 2. I don't control what Uber pays drivers, and if it wasn't for the mass hysteria of delivery apps, I would be more inclined to pay a full-time driver myself. 3. That marketing breakdown is from the Uber app itself not any other marketing campaign.
1...🤣 i don't believe that, the higher ur prices the more money uber makes. I doubt they would deactivate u for marking up ur own prices 🤦♂️🤦♂️. 2..... I never said u control how much drivers get paid, go back and read what i said 😁. 3......... Man u really need to go back and read what i said cause i never said the marketing they charged u was from any other marketing campaigns. U are really stuck in the victim mentality state of mind aren't u? The response u gave has "I'm the victim" posted all over it.
One thing i do find funny about this post tho is u put ur prices up in a heart beat and didn't even think twice about ur customers that are struggling to get through day to day life on the bear minimum wages they get paid. I guarantee u don't even pay ur employees above minimum wage pay rates either even after u put ur prices up, but yet u will scream u are the victim in all this? U want to be able to leach off another companies platform at no cost to u so u can build ur business and ur brand cause u want the world to revolve around u? Am i right or am i right?
Dude you know nothing about me or my business, I don't even take a salary, I only take what I need for day to day essentials, I have one employee that makes more than minimum wage (which is $15.75 here unlike the US standard of poverty wages) and only works 25hrs a week because he has a family, I work 60+ hrs a week, cleaning tables, prepping food, mopping floors, doing dishes, delivering catering orders and all additional marketing, accounting that goes along with starting a business. Do I put a delivery markup? Of course, if not I would be losing money on every order. So... Believe what you want.
kinna makes me feel bad for taking food and then reporting someone else picked it up
Wow horrible horrible person...
What state are you in in?
I'm in Canada.
This looks a lot like the restaurant fee breakdown when some place had put Grub Hub on full blast in the press. The fees are absolutely insane all around for both customer and restaurant. The drivereats the real cost of delivery with orders like this below. https://preview.redd.it/0a8j8tv0rvdc1.png?width=1080&format=pjpg&auto=webp&s=8f44bf81006bdc6edccf309e1d0d2b18d2c19fa2 Edit: link to article with the Grub Hub story. Seems even worse than yours OP, they got a out $377 from over $1000 of orders. These services seem like a parasite for all. [https://www.wxyz.com/news/coronavirus/viral-post-showing-grubhub-restaurant-fees-sparks-concerns-over-third-party-food-delivery-culture](https://www.wxyz.com/news/coronavirus/viral-post-showing-grubhub-restaurant-fees-sparks-concerns-over-third-party-food-delivery-culture)
How many orders was it through ubereats? Just wanted to know how much they charge per order to the restaurant
what’s that marketing charge? is that optional?
Worked at a place where ubering entrees didn't make money. They had to get appetizers and extra sides to make any gains, apparently. But you have to have it.
Do you have your own delivery driver?
I feel like i could start a delivery services that just charge distance and time to compete locally..
What I really think might work or be an option, a local delivery collective. Where restaurants in a certain radius all chip in on a group of drivers, pay them a fair wage per hour + tips and share the burden. That way drivers would be certain to get a good volume of deliveries and restaurants wouldn't have to be burdened with paying a full salary and risk a lot of downtime. If I only had to chip in say 5$ an hour instead of 15$ I'd be way more willing to manage my own delivery.
I think a network of co-op drivers between group of restaurants might be an answer for real.. Like a driver group serving this region of restaurants. Restaurant share expenses for wages and mileages reimbursements..
Three groups of people are getting squeezed The restauranteurs The drivers And The customers. Only one benefiting big is Delivery service
What is your business called?
There should be like a code, put an asterisk to your name or something on UberEats that indicates it‘s possible to order from your restaurant directly without UberEats at a lower price, of course UberEats would never do something like that themselves but maybe it could just become an established thing regardless
Steal from restaurants,steal from drivers,steal from customers,steal from the Government..SMH.. May the wrath of innocent people befall them
You should fire them if it's not worth it. My BIL runs a food truck in a food park and he doesn't use them. Doesn't want there to be a different price for delivery as opposed to walk up and as a driver, I don't blame him.
You're spending too much on advertising.
So they technically take 50% from your net earning? They’ve told me 15% about Grubhub but wow.
Wow that’s criminal. Hopefully your shop gains traction so your marketing won’t be so high. As a customer i order from restaurants that I’m unable to get to as taking an Uber there and back just doesn’t make sense so they only way id order from certain places is delivery. Its better than not having your customer order from you but certainly a slap in the face when you get the payout If i really enjoy a restaurant’s food then I’ll tell my friends and try to get to the shop to eat in and support. Hopefully this happen for you too and it is a good way to get your shop on peoples radar!
That's the reality unfortunately, word of mouth is the best advertisement, but it takes time. So for now, I will have to keep using them at least as a marketing tool even if it's a money pit. My whole point with this point was to show people that they really do screw everyone in the chain, customers,. drivers and the restaurants too.
It’s good to show stuff like this! It gives the customers more perspective and hopefully encourages to order through the shop, especially for those who’re picking up anyways. I do t think u er is *that* bad for customer considering the delivery service and sometimes they hve great promos and bogo ..but not so great for the stores :(
Don't utilize Uber Eats they aren't forcing you or push the cost to the customer. Im a UE customer (I use to drive as a side hustle). I have no problem paying more if the food is good. For an example Gallon of Lemonade at Chick Fil A is $8 / $10 in store. We pay $15 to have it delivered. Customers understand that convenience cost.
And I got 55 cents pay for an order worth more than a 100 dollars,, shame
Ummm. Sir/maam. UNLESS YOU CAN OFFER BETTER RATE DELIVERY SERVIC3S....WHAT WAS THE POINT OF THIS? ITS THIRD GRADE MATH THAT THE COST WOULD BE LOWER IF SOMEONE WENT AND GOT THEIR OWN SHIIT LOL
I'm just illustrating how much Uber takes from merchants, I don't know why you are yelling...
Your post irritated the hell out of me. Its pointless and offer no solution outside of you being mad about fees. Obviously the yelling did not get you to see that you are telling people to gett up take shower just to pick up food when all they want to do is skip a bathe and be lazy for the day. ITS A DELIVERY SERVICE THAT THEY ARE PAYING FOR MY GUY...DO YOU GET IT NOW. FYI. If since you havnt done your research..u would know that they are overcharging in ever leg of the delivery process. I swear some of yall really make me wonder why I dont have a fortune 500 yet jeezus
How is this with Skip. Do you do any other delivery services or just Uber?