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by p1necone 1432 days ago
There's no explicit delivery fee, but I find that most prices on Uber Eats are already inflated by ~10-20% over what you'd pay if you ordered directly from the restaurant.

The pricing model is very odd - you'd think that Uber would take all of their profit from the delivery fee - because, yaknow, that's the service that they're providing. But no, they also take a cut from the whole order afaik - which forces stores to inflate their prices to avoid eating into their normal profit margins.

3 comments

Uber Eats credits are basically "funny money". My employer sometimes gives us a $25 credit to go get lunch... and it can only be uber eats (not amazon/etc) because those are discounted like 20-30% to get employers involved. Employers feel like they're doing a nice thing for their employees and getting a good deal, because 20-30% discount. Then the restaurants all charge 20-30% more to make up for the fees Uber Eats charges them, and it all washes back out...

Still buys me lunch, but it ain't $25 for them and it ain't $25 for me either.

One effect of this is that if you order for pickup, you're paying prices that are inflated because they incorporate part of the delivery fee.

Or more charitably, if you order for pickup, you're paying to use their platform.

There could also be sales tax reasons to break the fees out like they do — i.e., some types of fees may be subject to sales tax, and other types not, so they fiddle with things to minimize the sales tax while still allocating reasonably.

That's true. The bun dish I order costs $12.95 when I call the restaurant to place my order vs $15.95 with the Uber middle man. We get two orders, so that is an extra $6.49 including tax. So I'm using $15 of Uber Cash to pay $8.51 less real cash than I would have otherwise. That doesn't sound like a good deal except that I have no other use for Uber credits.