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by acgh213 1849 days ago
As someone who does uber eats for some side cash (I have a very small and fuel effecient car, so it actually works out gas wise for me), the 11 dollars was the total service charge. Uber then breaks it down by what they take (the first party part, not included), and any other fees are in a seperate Third party section. So from my perspective of 11 dollars total, with 6 for the third party (which they absolutely pass onto the driver), the missing 5 could be made up by the Uber first party charges.

Now I can't confirm this, I'm not on his account, and he hasn't posted it yet. But I would put a nickel on the other 5 bucks being paid directly to Uber. Which again, not uncommon.

Here's an example from a delivery I did the other day, I can get more screenshots if you want. But out of the 22 dollars the customer paid for the delivery, I received 5.61 before tip. The rest went to uber [1]

[1] https://imgur.com/a/WaNh692

2 comments

> out of the 22 dollars the customer paid for the delivery, I received 5.61 before tip

I am completely ignorant on how this works on the driver’s side, so I could be missing something here:

Those 22 dollars the customer paid include whatever food you were delivering, right?

Now, I’m sure the Food cost/Service cost split changes from country to country (I’m somewhere in the Euro zone)… but interpolating from those numbers, I get the feeling that Uber must be subsidizing the service very heavily.

They don’t charge that much extra money to the customer, so I wonder where the profit is coming from.

I’m having trouble conceptualizing how they are making any actual profit after expenses, and in the meantime they (and their ilk) are pushing the traditional restaurant delivery network away since they cannot compete or price nor convenience.

I don’t have a conclusion for this train of thought, just a bit of shock here in the early morning.

> I’m having trouble conceptualizing how they are making any actual profit after expenses

They're not. They aren't profitable. They have never been profitable. They admit that they would not have been profitable even without COVID last year. They do not expect to be profitable until Q4 of this year - if you remove half their costs and their assumptions hold. They do not expect to actually be profitable (even on EBITDA) for even longer.

http://techcrunch.com/2021/02/12/will-ride-hailing-profits-e...

> in the meantime they (and their ilk) are pushing the traditional restaurant delivery network away since they cannot compete or price nor convenience.

https://en.wikipedia.org/wiki/Predatory_pricing

That’s insane. 25% went to you.