Posted by William Charles on March 12, 2019
Misc

Published on March 12th, 2019 | by William Charles

104

UberEats New 15% Service Fee Now In Place (Plus Small Order & Delivery Fees)

Uber has made changes to the way fees are changed on UberEats effective on March 18th, 2019. Booking fees were replaced by:

  • Delivery fees vary for each restaurant based on things like your location and availability of nearby couriers. You’ll always know how much before selecting a restaurant.
  • Service fees equal 15% of an order’s subtotal. This fee does not apply to restaurants that deliver their own orders.
  • Small order fees apply to orders less than $10. You can add more items to remove this fee.

This is a massive massive increase in fees. 15% of an order’s subtotal and then additional delivery fees on top of that seems ridiculous, especially on larger orders. I use UberEats because of convenience, but if the fees get too high then I’ll simply stop using the service altogether. This also has the potential to make the American Express Platinum Uber credit a lot less useful. In January UberEats introduced a service fee of 10% in some areas and a small order fee of $2, but it looks like they want to be even more aggressive with this new round of fees. To help offset these new fees we recommend checking if there are any current active UberEats promo codes.

Hat tip to reader JamaicanTraveller

 



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juanbeny
juanbeny

No need to tip anymore, am I right.

Andrew
Andrew

Came here exactly to say that. Absolutely no tips from me. On a $15 order that’s $2.25 service fee plus a delivery charge, which unless that drops a lot in my area it’s $5.99 to $8.49 to deliver. That’s a total of $8.24 to $10.74 fees to deliver a $15 order that is like 5 miles away.

If drivers feel like I’m ripping them off, they need to understand how expensive it is to use the service. They need to stop driving for Uber. If no one accepted requests from Uber then they would be forced to do something about it or stop offering the service. Right now though they have people falling over each other to drive so they don’t have to do a lot.

I think I’m going to be making a lot of little orders to make use of the Amex credit, probably a single item from somewhere or $8 from a fast food place (rather then a more upscale location). That would probably come out to be like ~$17 total, which means $2 out of pocket for not having to leave home plus $8 of food, still worth it. I wonder if uber drivers are going to be paid based on total order cost and not distance… boy they will be pissed if they’re making 15% of an order’s total cost, even if they get 100% of the small service fee. That would be like $2 to $3 a trip, lol

Self driving cars need to hurry up!

Melissa
Melissa

Don’t forget that some restaurant’s Uber menu is more expensive already. I also noticed that the same meals tend to be bigger when going to the restaurant directly.

With all the fees, smaller portions, and tips, you are essentially paying double.

Matt
Matt

I work in a restaurant that uses Uber Eats. When we set up the rep said most restaurants will charge 30% more to cancel out the 30% Uber takes for each order

Andrew
Andrew

MAN! That means it could cost $14.50 just to deliver a $9 order from a place that’s about 10 minutes away from me. THAT’S INSANE. Uber makes apps, they don’t have near the overhead to claim it cost them that much. Uber could charge me a flat $4 fee and if they could do three deliveries an hour and pass 75% of that to the driver so they’re paying $15/hr and still be making ~$5/hr. That’s off a $9 food order and three of them an hour. How expensive is it to develop those apps and maintain them? I feel like a lot more people would use the service at a cheap flat rate fee then trying to drive up the fees on each delivery. Uber needs to control internal costs, they should be so lean they almost have zero overhead. The costs are almost all on the drivers already, I don’t know if $15/hr would keep drivers around or not, but that would be better than drivers working 15 hours a day because they’re idle 50%+ of that time.

Dan
Dan

How do you come up with 3 deliveries at $4/delivery equals $20? They’re raising prices because the economics at current prices don’t make sense. Eventually, the average prices on their ride services are going to go up too. They have lots of overhead costs related to maintaining a giant fleet of drivers, legal for complying with all sorts of regulations at municipal/state/federal level, marketing, R&D for all their business lines, etc. They have publicly reported that they aren’t a profitable company.

Bill
Bill

Yea some restaurants jack up the online price. There are certain restaurants i won’t order from online as a result.

HOVSEP MAADANJIAN
HOVSEP MAADANJIAN

Your a cheap ass. 1st stop using this app. Company is criminal and uses slave lobor to feed you.

n0n0n
n0n0n

how is it slave labor if they willingly choose to do it? it should only take a driver one day to determine how unprofitable it is.

MoreSun
MoreSun

troll warning…

Wyatt
Wyatt

I drive for UE, I understand the cost of having it delivered, however you could just go get the food yourself if the delivery fee is too high. We already are only making about $3 an order and maybe 3 of 40 orders I do a day on average don’t tip. Furthermore to your point that we could just stop driving for Uber till they change it; if I stopped driving for Uber my current job wouldn’t be enough to pay my life expenses, so that isn’t an option. Most people aren’t delivering your food because we like it, it’s because we are struggling and don’t have much choice.

Christian
Christian

It’s borderline impossible that you “aren’t able to stop driving”. If your entire ability to sustain yourself is dependent on driving for UE then I have some bad news for you. This job didn’t exist 5 years ago, and it won’t exist 5 years from now. I hope you’re working on expanding your skill set if you really feel like you can’t do something else.

Andrew
Andrew

Honestly, I think you could make more money working fast food level work, maybe you’ll have to work two jobs and hustle more, but all I’ve ever heard is uber doesn’t pay great. Maybe it’s easier to work 15 hours a day for 7 days since you’re sitting a lot in your own car, but I can’t imagine uber is the most efficient way to make money at that level. I don’t mean to talk down to your or anything, I understand life is hard, but honestly this gig type work like uber should be filled with college kids and stuff like that just working three or four hours between classes or after classes for some spending money and stuff.

Jeff
Jeff

So no problem paying $550 for the AMEX Platinum card and no problem taking the time to make sure you you get your $10 AMEX credit…. but god forbid you tip the driver bringing you the food in their own car.
I hope all your future deliveries arrive pre-licked.

Kimberly Di Dominicus
Kimberly Di Dominicus

Don’t forget if it is a “small order” you are paying $2.00+ 15% of the Order + the $5.99+ delivery charge.
I had an order that would have cost $5.99 to deliver still coat 5.99+ 8.79 in “service fees” their only “over head” is the drivers which should be getting paid in delivery fees. They not only change the costumers for the service they charge the restaurants too. They already are getting money from both ends, so this “service fee” BS is just greed. Everyone needs to ban use of Uber eats until they switch back.

doc
doc

Delivery is a luxury, so tipping is the standard. Fees were never designed to compensate the drivers. So, if you are cheap, don’t order delivery. Instead, just pickup.

Now, if you’re stuck at work somewhere, where delivery would be convenient… I feel your pain. But, society lived without these things for a great long while. So, I’m not entirely sympathetic. Better yet, just buy some food at the local grocer — and bring your lunch to work.

Andrew
Andrew

America Express and Uber can cover the tip. I only use Uber to use up my American Express credit, which in part I pay $550/year for access to. If Uber is going to make delivery $8.50 to $10 to deliver, when they basically have zero overhead (they don’t own the cars, they don’t own the restaurant, they aren’t reimbursing gas costs, etc) they can afford to fork over the tip. Also, drivers can stop driving for Uber if they don’t feel like they’re making enough. These service fees are public knowledge, they know exactly how expensive the service is. It shouldn’t all fall to customers.

Kalifa
Kalifa

WHATADICK

veeRob

What tip are they forking over? None of these fees are labeled as tip, so there’s nothing to fork over. Uber’s being greedy and I personally don’t feel like that is grounds to take money I was previously tipping to delivery drivers away from them.

Andrew
Andrew

I only use Uber to use up the Amex credits, so normally I don’t support them. I would be fine if drivers started to boycott Uber and demanded better pay, but I’m not going to keep tipping drivers while Uber keeps digging deeper. Again note, I only use it for the free credits I have, so I’m not giving them business outside of that. Uber is a software company and almost all their service fees should be passed to drivers. If they’re charging $10/trip, like $7.50 or something should go to a driver. How hard is it to maintain an app?

Rish
Rish

This guy really understands how businesses work. The next Buffett right here.

James
James

Want a tip? Get a real job

SBR
SBR

If they want to position themselves as a “luxury” service, then they had better be prepared for “luxury”-market level demand. There are plenty of food delivery services out there with more reasonable fee structures. If Uber wants to price itself out of the market, then I’m happy to switch.

MSer
MSer

Isn’t having food delivered to your lazy backside a luxury? Tip the driver ffs. Just like you always tip housekeeping.

Kimberly
Kimberly

Restuarants used to do delivery themselves and divers would get tipped $2-3 per delivery. It’s not some new concept to have food delivered. Add an extra 15% fee on top of a delivery charge is. They made it so it would cost more to deliver with uber than to go have dinner and be waited on at a restaurant.
Then the company chages not just the customer but the restaurant and don’t give more to the drivers after these “fees” it isn’t a luxury for a company to rip people off with corporate greed. Grubhub for one only charges a delivery fee. No service fee and they give their drivers warming bags.
Uber eats are being dicks. It doesn’t cost them more money. The drivers use their cars and do all the work and uber not only takes a cut of the delivery fee they charge the restaurants a free to use uber eats, now with an extra 15% charge that probably won’t even go to the drivers for no reason. Forget uber eats

Matt
Matt

I don’t agree with this mentality. How society was should not be a measure of how it should function in the future.
I’m also not an advocate of tipping. I do tip myself but just find the idea backwards. A lot of other countries don’t do it and it simplifies things. The consumers in the US are just accustomed for companies to pass on cost to them. Your mentality is a good example of that, no offense. But I think tipping is just another way for companies to do that.

Leon
Leon

I never tipped. It’s the cancerous part of American culture. Nothing is entitled to anyone.

doc
doc

Yet, you wonder why your next order is missing half of the fries.

I’m not condoning food theft. I’m just saying that service workers remember when you don’t tip.

Think of it this way, if you delivered food for a living, would you prefer servicing those that did – or did not tip? Would you go out of your way for someone that you knew never tipped? Or, would you take your sweet time, and potentially forget some or all of the requested condiments?

In other words, do you think that poorly of yourself, that you wouldn’t even tip yourself… if the shoe was on the other foot?

Llam
Llam

Can confirm, if I am taking multiple deliveries at work and one of them is a known non-tipper, they are last in line for drop off.

Ryan Gafford
Ryan Gafford

then you just get a bad rep and i get a refund. nice.

Joe
Joe

I love how easy you make this sound. We used to deliver Papa John’s the absolute farthest corner of our delivery area and the guy would give us a check for the exact amount of his pizza. It was probably 30 minutes round trip, a gallon of gas, and we got something like $.75 of the delivery fee and our $6.75 an hour. We were just about taking a loss because gas was $4/gal at that time.

But here’s the thing- every new person would get that order dumped on them and they would deliver the pizza as hot as possible, as quickly as possible. The guy got ended up getting amazing service for a year because we had a revolving door of drivers who didn’t know any better.

Eventually we got a good crew to stick around and we would let his order sit under the heat lamps for 10 minutes until we could stack a double in that general direction, which we always delivered before his order. He finally called to complain about his cold pizza and our manager told him not to order from us anymore.

Scott
Scott

Let’s look at Uber Eats drivers. They are sub contractors. They are not paid benefits, are not provided health insurance, have no paid days off, and no paid vacations. And they deliver in all weather. They also have to pay to maintain and repair their own vehicles, as well as pay for their own gas. Then they drive to the restaurant, without getting paid, and they often wait 15 or more minutes for the food to be prepared. Once the food has been prepared, the Uber Eats driver then fights traffic, has to try to locate an address in an apartment complex, or even a house with no porch light and the address is painted the same as the house. And they are expected to do all this in 25 minutes, when it took them 8 minutes to get to the restaurant, then they had to wait 15 minutes at the restaurant, then they have to drive the 10 minutes to your address. In all this time, the driver ends up making about $3.75 for the delivery, minus fuel costs. If you wouldn’t tip your waitress or waiter or bar tender, then it would make sense that you wouldn’t tip your Uber Eats driver, either. YOU feel entitled. They did all the work for you, and you feel you’re entitled to get something for nothing. Right? You may have paid for the food, and possibly a service fee, but none of that goes to the driver. Uber Eats driver fight the traffic, work lunch and dinner rushes, and even deliver late night, even in 1-2 feet of snow. I’m not sure where the entitlement of someone who has done the work comes in. When you tip a valet, it’s for the convenience. When you tip a waiter or waitress, they brought your food a few feet to you. They didn’t drive to get your food, wait for you food, FOR YOU, and they didn’t drive across town to get your food to you. If you DO tip your waiter or waitress, why wouldn’t you tip someone who has done so much more for you? Most Uber Eats drivers make $10 an hour, if they’re lucky, after fuel costs.They’re providing a service. Uber Eats drivers don’t expect a tip because most people don’t tip any more, mostly because we are in the age of entitlement, where people expect people to do… Read more »

Andrew
Andrew

In general, I don’t use UberEats, I might if the service was cheaper. Uber does a deal with Amex and offers credits every month to their service, I’m locked in to using their service to get my American Express benefit, which I pay for. I use UberEats just enough to make use of that. Second, I don’t feel like I deserve the service for nothing, I think I deserve curb side service for about $5, maybe a little more in rush times, very late at night, or far away places. 10 minute drive at 7:30pm on a Thur or something, worth about $5. Now what I pay for that service could be $13.20 (15% service charge on a $9 item, $2 small order fee, and up to $8.49, which is currently the delivery charge for a place about 10 minutes away from me). Unless Uber drops that distance based delivery fee by a lot, I’m paying almost 150% to have a small order brought to me. By the way, Uber is making ~$2.70 from the restaurant (if the 30% comment posted above is factual). Uber should be passing 100% of the delivery charge to the driver and they should lower those delivery fees. $5 or $6 for a ten minute drive could be $15 to $18 if they can do just three orders an hour. Uber keeps the 30% from the restaurant. Uber should have very very little overhead since they don’t own the car, pay health care, pay vacation or sick time, or anything else you pointed out. Further, gig economy type jobs shouldn’t really be a full time job, they should be for making some extra money, or to supplement a part time job, or to work when you’re in college and you have time between classes. it’s a gig, not a career. With the technology we have today, the restaurants should be able to estimate and/or update the driver on the status of an order and the driver really should only be notified when orders are near ready. Pickup shouldn’t take more than a few minutes, unless you’re in a big city where parking is almost impossible, etc. Charge surcharges in that case. But where there is a self park surface lot provided by the restaurant, pick up should be fast and easy, and if it isn’t, drivers should be able to report those restaurants and they… Read more »

Buzz
Buzz

I will value your opinion when you at least do these gig economies for yourself. Otherwise it’s a one-sided conversation coming from you.

Buzz
Buzz

Sorry this was a double-post.

aubergine
aubergine

If the tip has really been earned, why aren’t the drivers billing Uber or the restaurants for all that work?

CJ
CJ

So we punish the drivers who are trying to make a living because of Uber? Drivers wages go down with the increase. The only one making a profit from this is Uber.

bellevuemike
bellevuemike

Yep. My wife and I have the Ameriprise and Schwab each. Once a month we do an Ubereats order of $60 for a family night of 4 of cheap food. 2 orders of $30 with 2 sets of delivery fees.
As it stands, it’s barely a net win. If they truly layer on more fees, then it was a mistake to factor Ubereats into our renewal for Schwab in January.

Kane
Kane

why don’t you just combine all the plat credit into one account?

TJNA
TJNA

Kane is right. You can use all the credits at once. At one point I had my + my wife + my mother + my father’s platinum cards all on the same uber account — the credits stacked.

DB
DB

I’ve started using pickup instead of delivery since the fees increases to use those Plat credits. Even so I’m still at loss since many restaurants in my area are using inflated price when ordering through UberEats instead of directly.

Andrew
Andrew

That’s because Uber gets a cut from the restaurant as well… so they get delivery fees, service fees, possibly small order fee, AND fees from the restaurants.

That’s why Uber can occasionally pay drivers more for a trip then what it costs in delivery fees.

captainsave
captainsave

Ubereats have pickup??

Frito Pendejo
Frito Pendejo

Yeah, really?? How to use?

veeRob

It’s new in some areas. Not available everywhere.

DB
DB

At the top there are three tabs – Delivery, Pickup, and Dine-in. Not every merchant available for delivery is available for pickup or dine-in though (e.g., Popeyes). I didn’t know that this is something that is only available in certain areas.

Dan
Dan

Uber is losing money like a drunk frat girl in Vegas…. had to happen. Not sure how many users stay after this huge increase. We are somewhat locked in with Uber credits, but these are basically worthless now.

BW
BW

Frat girl?

Alexandra Ocasio Cortez
Alexandra Ocasio Cortez

they are just matching doordash fees. I always wondered why anybody in the world would use doordash and pay their horrible 15% fee when you can order from uber or grubhub wihtout the fee. I dreamed of the day when they would remove the fee and become like uber (i have some doordash credits), but alas as my life goes the opposite happened and uber has become like doordash.

Vonja Kruger
Vonja Kruger

Are you kidding? UberEats never has anything less than a $5.49 delivery fee for anything around me – and that’s off-peak. Once I saw ..maybe surge?.. delivery of $16.50; the weird thing was delivery fee for several other restaurants 1-3 blocks away was somewhere in the $8-range.

Compare that to Doordash. Off-peak delivery fees are $2-$3 for at least 50% of my restaurants, $4-6 peak ((say 1130-1230, 1700-1830). If you pay $10 for Dashpass, delivery over $15 is usually free and you get a discount on the service fee. If I use Doordash 3x/mo, the pass pays for itself.

It’s certainly possible that my area (which is a suburb, but I usually see 5-6 cars in my immediate area on the Uber map) has wonky pricing, but for me, Doordash is far superior. If they only had GCs to get bonus points, damn it!

Mike
Mike

Any indication they are going to lower the delivery fee or make it free for a close restaurant like they did last year?

RC
RC

Ubereats has forced my hand. I’m going to have to get so drunk when I go out now that I need to take an uber home.

el_pistolero
el_pistolero

😂😂😂

YoniPDX
YoniPDX

We used our Amex uber credits this past weekend, and also did a Grubhub for Gold card as we will be traveling of the country for almost three weeks and did’nt want to leave money on the table (as if – we fees its almost a wash).

If the fees stay the same and the delays get worse, ( past weekend Sat/Sun- ordered from a restaurant 1.5 miles from the house – suburbs) Ubereats est was 30-40 min – was in the process of cancelling in the app at 80 min’s when the driver pop’s up on the app 93 minutes delivered) the other order was a little further in opposite direction – Ubereats est 25-35 min – delivered 65 minutes). Both orders were mid afternoon around 2:15 – so not like it was during lunch rush.

Grubhuub (Amex Gold) restaurant restaurant – about 5 miles away est delivery 45 mins actually was at the door five minutes early.

We rarely take Uber’s other than from the airport – or from the MAX station to the house depending on time/day of week and how much luggage.

Early on Ubereats was an ok deal – but it seems like recently that orders are missing items or delivered cold and a far outside estimated delivery window. I empathize with the gig drivers, as years ago I delivered Deli food as well as Pizza when I was going to school at Stonybrook.

Ubereats – needs to come up with grading system – or comp system for restaurants that over promise and under-deliver – I also feel for the small business owners that run restaurants and also are paying such a big chunk to Ubereats/Grubhub/postmates/doordash.

Event the Uber fees the last few times we’ve used them have jumped in price – for early morning rides to/from Airport or Amtrak stations (not during rush times) .

Andrew
Andrew

Uber is horribly slow for me. They always estimate 20 to 25 minutes (it’s about 10 to 15 min drive time, so that’s fair) and it ALWAYS takes 40+ minutes. This can be 11am, 3pm, or 10pm. I wish their system wasn’t so aggressive to estimate short times. I’ll never use them for actually calling a car for myself or anyone else, I don’t trust they’ll be on time.

I’ve also got loads of phantom restaurants in my app that once were on Uber eats but then left the service. Normally they’re always “unavailable” which is a pain. It’ll look like 15 restaurants around me do UberEats and only three are available, but it’s smoke and mirrors. HOWEVER, if you schedule an order in advance you can order from them but your order will never change from “confirming with restaurant”. I left a bad review at a local restaurant for them having horrible customer service and long wait times after I cancelled my Uber eats order after 45 minutes waiting for a confirmation and got a reply basically saying not to give them bad reviews based on Uber eats since they’re not part of the service. I followed up saying as long as they show up in the app I’ll leave bad reviews. It’s not my responsibility to watch out for their business, it’s theirs, and if that means calling Uber over and over until they’re gone from the app, they should do it.

Seriously?
Seriously?

You sound like a complete jerk at the end of that rant. Side with the small business, not Uber, which is listing the business without the owner’s permission.

Kane
Kane

I guess is better than caviar 18% fee.
But still, I think it’s only ok if they pay at least half of it to the driver.

stvr
stvr

In defense of Uber, delivery is WAY WAY more expensive than what they were charging. You have to pay a human to spend half an hour or more hunting for you in the field. Uber will roll out pickup and you can save that way if it’s not worth it to you.

USam
USam

Well Uber also gets a percentage of the order, so they get more than just the delivery fees.

Frito Pendejo
Frito Pendejo

Don’t pizza drivers make almost zero hourly and get only tips? They seem to do just fine. Aren’t the Uber fees about the same or higher than a non-app delivery tip?

Celia
Celia

Under federal law, restaurants are required to pay delivery drivers $2.13 per hour if they utilize the tip credit, though gratuities must push each driver over the $7.25 federal minimum wage. In the event that the $7.25 hourly rate is not met on a workweek basis, an employer must make up the difference.

docbjg
docbjg

Many restaurants used to have free delivery. Now they’re fobbing the cost off on us by switching to Ubereats etc.

veeRob

…because offering free delivery wasn’t profitable for them.

Llam
Llam

My Pizza Hut charges $4.75 for delivery. As well as a 6% service fee on every order, even carryout. Though, we do get paid $12/hour plus all tips.

Bill S
Bill S

I too only use UberEats because of the AmEx credit. After they raised their delivery fees a while back, I’m surprised anyone uses them anymore. I started using DoorDash if I’m feeling hungry and lazy. They have MUCH lower fees. I suspect UberEats won’t be around in the future.

Joe
Joe

DoorDash prices are so inflated it’s the same thing.

sloebrake
sloebrake

accounting tricks for the IPO?

Use last quarters revenue with this new pricing and predict hyooge profit to prop up the IPO.

Early investors get out of their stock/options before the quarterly report shows that people won’t pay substantial fees for delivery. Which, along with the uber standard billion dollar losses, causes the stock to crash.

True believers buy back in and the smart money wanders off to another scheme.

MSer
MSer

Exactly. This is to scam clueless retail investors while insiders make billions.

More Info
More Info

For the price conscious folks (majority of people on this blog), delivery services aren’t going to make sense, until, as Andrew points out, cars and robots replace humans. UberEats has already replaced many restaurants in metropolitan areas from managing their own delivery fleet (by temporarily driving down costs) and restaurants, by and large, are not likely to bring to that back. So if you work in an area where you always order online and have it delivered, you’re stuck with a dilemma, either bring (healthier and cheaper) food from home or pony up to the new economy.

Uber, Lyft, Postmates, Instacart lose money hand-over-fist. At some point they will rationalize their costs. The sooner money dries up (be it a recession or venture funding bust), the sooner this will take place. Enjoy the very discounted Neflix, Amazon, Spotify, etc services why they last.

USam
USam

Now I’ll just use Grubhub/Seamless. Especially with the Amex Gold credit that UberEATS isn’t on.

Rick
Rick

All this means is I’ll be using the pickup option exclusively from whichever app offers it (Grubhub for now) from here on out, and only if they’re running special deals Delivery fee, service fee, inflated food prices, AND a tip? Fuck you very much.

I can’t complain though, first time I used UberEats was when Schwab had the $25 “lunch-on-us” promo, so I got $25 worth of food for $1.56. Haven’t touched the app since.

Sam
Sam

If you are using pickup option, why do you need uber eats? Just order from the restaurant directly.

Joe
Joe

To use the Amex Platinum/Gold credits.

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