Despite six months of negotiations, UberEats has so far refused to budge on its 35 percent service fee. This has left a number of restaurants boycotting the service and withdrawing their menu.
Restaurant Association CEO Marisa Bidois is confident that a breakthrough is near.
“We’re meeting again next week with the sole purpose of discussing that rate… so this is sort of the most we’ve ever actually discussed it so that’s the reason for the optimism.”
UberEats currently takes a 35 percent cut of the total price of every order made through its system, which can represent a significant portion for restaurants and cut into profits. However, Al Brown-owned chain Best Ugly Bagels managed to negotiate a reduced fee when the service launched in March 2017. While a spokesman for the company wouldn’t reveal the exact fee, he did say it was “a decent amount less” that the 35 percent.
While optimism was initially high after the launch of the service just over a year ago, a study conducted by the Restaurant Association has shown that those levels have since fallen away. The high service fee charged by Uber Eats does not fit every business model, Bidois explained, which meant staying on the service was unsustainable.
“The research has shown that there has been incremental sale increases when using Uber Eats but sadly this hasn’t converted to increased profits for most of those businesses.”