Is Uber Eats Merchant Program Worth It (Pros, Cons, Fees)

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uber eats merchant

Uber Eats is one of the largest online food ordering and delivery platforms that connect users with local restaurants, grocery stores, alcohol stores and more.

Uber offers restaurants and merchants an online platform to list their menu and products and help them increase their reach.

With the advent of appealing, user-friendly apps , delivery services and in particular restaurant delivery services, increased their popularity.

Additionally, the coronavirus pandemic spurred more online shopping. Digital ordering, delivery and pickup have grown 300% faster than dine-in traffic since 2014.

If you are a business owner, you should take in consideration this new customer’s behavior.

So, is the Uber Eats merchant program right for you? In this complete guide you will learn everything you need to know including costs, advantages and drawbacks.

What Is The UberEats Merchant Program

The Uber Eats partner program is a set of tools and resources that business owners can use to increase their revenues.

These tools include:

  • Sales Channels: Uber provides all the ordering, delivery and payment logistics.
  • Marketing: The company offers business and restaurant owners free marketing tools that will help you streamline campaigns, optimize your menu or listings and help you increase reach and employ better marketing strategies.
  • Analytics: with this simple and accessible tool, you can easily get the valuable insights you need to improve your performance.

What Are The Advantages Of Becoming An Uber Eats Partner

If you are interested in boosting your sales making business with Uber Eats, the odds are that you have come across guides that talk about making money as an Uber Eats merchant.

However, as with many things and third party delivery services, it can be difficult to know how much of those guides is just hype and how much of what is said in them is true.

At BestReferralDriver we are a community website. Before writing this article we had an interesting discussion with some Italian restaurant owners in the Bay Area.

We suggest you also read our comparaison of the best delivery services for business. In this article we focus on Uber.

So, the big question is if Uber Eats is good for restaurants?

To give you a good idea of what it is like to be on the Uber marketplace, we will share with you all the UberEats pros and cons for restaurants and merchants.

Pros Of Uber Eats Merchant Program

According to statistics Uber Eats has 24 percent of market share in the United States.

When a merchant joins the Uber Eats platform, get access to 66 million active users on the platform. There is plenty of opportunity for businesses to grow their revenue. We identify the following main advantages:

  • Delivery services are available in more than 4, 000 cities across the US.
  • Increase your visibility online: You do not have to hire a freelancer to make your own app.
  • You do not need to have your own fleet of vehicles: Uber Eats takes care of everything. Customers place an order using the mobile app or the website while a delivery driver will pick up and deliver food to the customer’s doorstep.
  • Stay competitive in the food industry: As technology evolves and customer’s behaviors too, you need to stay competitive. 63% of consumers agree that it is more convenient to get delivery than dining out with a family.

Cons Of Uber Eats Merchant Program

  • More revenue but less profit: You will increase your sales but decrease your profit margin.
  • Additional fees: When considering all the Uber East for business fees, you cannot forget the additional fees that are on top of the service fees such as the POS commissions and the fees if you use the Uber Eats tablet.
  • Loss of control over the delivery process: While you can use the UberEats merchant portal to directly answer customer reviews to your business, you will not have control over the delivery process.
  • Bad experience leads to less loyalty: Once again, if something goes wrong during the delivery, for example if your food arrives cold, customers are likely to blame the restaurant and not the delivery service. We suggest you require and always verify that delivery drivers have the correct gears.

How Much Does Uber Eats Charge Restaurants?

The Uber marketplace fee is a percentage of revenue that is taken out of all items that are sold via the platform.

Depending on how you want to use the platform, Uber has currently 3 plans.

Here's a breakdown of the pricing for each Uber Eats plan:

  • Lite Plan - costs 15% fee for delivery orders and 6% fee for pickup
  • Plus Plan - costs 25% fee for delivery orders and 6% fee for pickup
  • Premium Plan – costs 30% fee for delivery orders and 6% fee for pickup. With this plan Uber engages to help you reach more customers. You will pay 0% fees if you don’t get at least 25 orders per month.

Regardless of which is the best plan, it might be difficult to know which plan is the best for your business situation.

And that is where I hope to help you. From this page, you can find my opinion on what is the best plan for most partners and restaurants on Uber Eats as well as information about the situations for which some other plan might be the best choice.

Which plan is the best for a certain individual or a business depends ultimately on two things:

The first thing is quite self-explanatory, but the other might need a little bit of elaboration.

The second thing matters because the features of Uber Eats restaurants' plans can differ and because the commission fees UberEats charges depend on the plan you are using.

And that leads to the fact that a plan that is more expensive in terms of its monthly price can actually be cheaper overall.

According to the restaurant owners we talked with, if you already have an existing and successful business that you are just looking to place in Uber's platform the Plus might be the perfect choice for you.

If you want your online restaurant to become a massive hit, it might be a good idea to choose the Premium Plan. Uber will help you increase your reach.

become an Uber eats merchant

5 Step To Become an Uber Eats Merchant

Now you know the benefits of Uber for business. Above we already covered the main perks of a partnership with Uber. Another important point is that there are no starting fees. Creating an Uber Eats business account is totally FREE.

In order to get started with Uber Eats, follow our step by step tutorial:

1. Learn More About Uber Eats Merchant Program

In this article we explore the most important information about a partnership with the San Francisco headquartered company.

If you want to spend more time reading all the details of the partnership, you can read the merchants and restaurants blog blog and learn more about partner perks.

2. Join the Uber Eats Merchant Program

Adding your restaurant to UberEats is not that complicated. Simply head sign up page.

3. Enter Your Information

In order to set up your account and add your restaurant to UberEats, you must complete a form that asks for some personal and business information. Complete all the necessary fields including:

After these steps, scroll down to the “Business Types'' section and choose the type of your business. As a reminder the Uber Eats business evolved during the past years. Uber Eats is not anymore only a food delivery app. Here you can select:

After selecting your business category, read the Uber Eats Merchant Agreement at the bottom of the page and check the corresponding box. Whether you are a driver with the Uber Eats app or a restaurant, we always suggest taking a quick look at the terms and conditions.

This agreement outlines the relationship with Uber and your business.

Get Confirmation And Starter Kit

Keep in mind that not all the restaurants that apply are accepted in the program. During the application process, you will have to provide the number of locations you have and estimated weekly to-go orders. After creating an account, an Uber Eats team member will contact you to confirm your partnership.

You receive a starter kit which may include the Uber Eats tablet.

If you want to use the Uber device you have to pay a weekly fee as follow:

You can also use your own device and use the app which is available to download for Android, or download for iOS.

If you are worried about learning the new restaurant software, you will get an onboarding session that will help you understand how to use the software and the platform.

5. Meet Your Uber Eats Dashboard

Now that you create your Uber Eats merchant account and you are approved, you have access to your dashboard.

Upload your listing, your business is ready to go live and you can start receiving orders and make money.

Measure The Success Of Your Partnership With The Uber Eats Merchant Portal

Restaurants succeed because they understand how to leverage the data that is collected. The Uber Eats manager is a powerful tool.

Using the analytics tools, you can make informed decisions and assess the strength and the success of your partnership. The tool will give you a clear idea of:

You can also keep customers happy and coming back. The feedback hub lets you respond directly to ratings and reviews, say thanks, and even send an offer to resolve a concern.

The Partner Dashboard is also your primary source for all your questions. From the portal you will also be able to contact the merchant support and get help whenever you want and wherever you need to get your questions answered.

Frequently Asked Questions

Do Restaurants Lose Money With Uber Eats?

During the past years food delivery services received a lot of criticism from restaurants complaining of paying high fees.

Companies like ChowNow entered the game. ChowNow helps a restaurant set up its own ordering app and website and allow diners to connect with the best local restaurants in their communities to order takeout. Of course not for free.

The truth, that we learned talking directly with business owners, is that restaurants will not lose money partnering with Uber or other delivery apps.

As a commun practice, restaurants increase the item prices when they list their menu on delivery services to cover, at least in part, the commission fees.

Ready To Join The ​​600,000 Merchants On Uber

Now you know everything you need to know about Uber Eats for business cost and how to become an Uber Eats merchant. For any business becoming an Uber partner offers an opportunity to reach more customers and earn extra cash.

If you have doubts about whether Uber Eats is worth it for your restaurant or business, I would recommend signing up for Uber’s free trial and spending a couple of hours testing the platform.

The food delivery company is currently offering new businesses 30 days free trial with 0% commissions.


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