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by safog 2239 days ago
The restaurants don't lose a full 30% on the order - the items on Uber eats are marked up over what you pay when you do regular takeout. I wouldn't go so far as to say they don't lose any money at all but we won't know exact numbers until Uber / restaurant owners publish them somewhere.

Also, having a delivery option I'm pretty sure provides additional business (on top of just having dine-in / pick up). So, for a restaurant to hire employees and building out a delivery service themselves will be much more hassle and probably will be more expensive than using a service like doordash / uber eats.

Lastly, this is driving a trend towards the so-called "cloud kitchens" letting restaurants operate with a subset of staff in cheaper to rent places and charging effectively what a regular restaurant would for a meal.

The restaurants are going through a paradigm shift now, and it will only be accelerated due to COVID - Cloud kitchens can be more sanitary / safer to order from than regular dine-in restaurants for instance but I don't really feel sorry for them. If anything, the drivers doing the delivery are the ones getting shafted here and barely making any money. If folks start tipping, it will simply mean that Uber can afford to pay drivers less - the amount a driver makes won't change very significantly.

Overall I'm convinced eats is the future and Uber focusing on ride share + eats + self driving (existential threat if someone else does it cheaper / better) is the right way to go for the company.

4 comments

> The restaurants don't lose a full 30% on the order - the items on Uber eats are marked up over what you pay when you do regular takeout.

Not to mention that they are saving on labor and rent costs on delivery orders by not having to pay additional wait staff, get a bigger space more more tables etc.

> Not to mention that they are saving on labor and rent costs on delivery orders by not having to pay additional wait staff, get a bigger space more more tables etc.

Except business models that were takeout/delivery from the start usually had their own delivery drivers. The apps were marketed at restaurants that typically were full-service but didn't have delivery staff.

> Lastly, this is driving a trend towards the so-called "cloud kitchens" letting restaurants operate with a subset of staff in cheaper to rent places

These exhibited the same failure modes as UberEats, et al., namely that your food is cold by the time it gets there.

Delivery works when it's local and immediate--period.

cloud kitchen = a new name for drive through food service? :-)
> The restaurants don't lose a full 30% on the order

Doesn't Apple already grab 30% of the in-app payment?

Apple doesn't take any percentage of payment for physical goods.
That doesn't apply for physical goods.