UberEATS: So Many Restaurants Leaving

I have been an avid user of UberEats over the past 12 months mainly because it is so much faster than Menulog as the restaurant is not the one doing the delivery.
over the past 2 weeks at least 15 places we have order from regularly have left the program, we literally have Maccas and like one kebab joint left in our area now.

A few mates in other areas have noticed it too
Was wondering if any OzBarginers have seen the same trend.

I guess them taking 35% and not allowing you to charge extra (unless you are Macca's) has taken its toll on a lot of places.

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Comments

  • +42

    http://www.abc.net.au/news/2018-04-22/uber-eats-criticised-o…

    Yeah they are quiet scummy and I have never supported them.

    Have always questioned people who decide to order off them while they criticize others for other 'moral' things.

    It's really not worth it for the restaurant since most orders come in when they have most customers and the quality can decline as well so they might as well focus on the full paying in-house customers.

    • +19

      My thoughts exactly. It’s a business model that exploits labour and bypasses labour market regulations.

      • +4

        It’s a business model that exploits labour

        This is the essence capitalism and true for most businesses.

        • +4

          @ddr0001: Wow dude, the way you're carrying on you'd think I made up something bad about capitalism rather than simply describe the way it works.

        • +3

          @ddr0001: breadlines aren't a socialist thing. They happen in all economies including capitalist ones. Think depression.

        • +1

          @ddr0001: OMG - You are worried about the reds under the beds. Being poor in any society sucks big time. People with money think that the poor deserve what they get because it means that being rich is virtuous instead of often being a combination of family money and good luck.

    • +5

      It's really not worth it for the restaurant

      I've never used them and they sound horrible to me too but I'm chummy with some restauranteurs who think the increase in revenue is worth the 35%. In fact, they are considering opening a new "restaurant" on the other side of town but having it only for uberEats to keep their costs right down with no need for renting large premises in nice places fitted out for dining and paying service staff.

      • +1

        The article mentions "dark kitchens' where all they do is just make food for Uber. I know Menulog and UberEats are creating Kitchens that ONLY service this but are 'marketed' as restaurants which sounds a bit dodge too me.

        Also another thing. The article mentions a Cafe called 'Petty Cash' who raises concerns that they make the cafes foot some of the bill if the customer decides the food goes 'missing' that's also a big issue too.

        • Isn't that just called "catering" and it's a legit business, not dodgy.

      • In Brisbane CBD there are several establishments where it looks like Uber and the like are at least half their business on a weeknight. Very annoying for walk-up customers who are in for an unexpectedly long wait as order after order is prepped for customers who aren't taking up any visual space that would make it look busy enough to justify the wait / going elsewhere.

        A dark kitchen in an area with a lot of apartments looks to be a winning idea.

      • This is a bit of a hard one.
        With everyone being on UberEats you essentially are forced to sign up to get that extra business to stay competitive and not close down completely.
        In saying that they have to cut back on staff, wage increases, or just paying the legal minimum wage as it is.
        UE is more than an aggregator platform in the way it works and is killing a lot of small/startup cafes/bars/restaurants as well as existing.
        I've seen so many close down and spoken to many within hospitality that have expressed these feels.
        You can't stay away from UberEats. Eventually you'll have to sign up or close down due to minimal profits.

    • +3

      Having read that article about unfair contract provisions I'm tempted to stop using the service. There is a clear inequality of bargaining power between the restaurateurs and delivery/order/payment subcontractor (UberEATS, even though they claim not to be).

      The trouble is that prior to UberEATS a lot of restaurants did not offer any delivery service. Delivery generally only meant pizza. If you wanted something else (e.g. cafe, restaurant cuisine etc) you had to physically go get takeaway. The small independent owner-operated restaurants that we all know and love generally won't have the 'critical mass' to set up a delivery service. Subcontracting delivery makes financial sense. All the modern IT services (online payment gateway, smartphone app, GPS tracking) aren't cheap to make.

      I'm hoping that there is some more competition in this space together with some guidance/regulation from the ACCC.

  • +36

    Yes, pizza joint near me had it's own delivery drivers then canned them and switched to UE. Now they've canned UE and are advertising again for delivery drivers.

    • +10

      35% of the entire order vs whatever teens are paid per hour to deliver and prep for you between deliveries,, it's a no brainer as long as you have a good source of teenagers.

  • Haven't noticed any stores leaving my area yet.

    • +6

      Seriously? Using Uber eats is probably like a form of "advertising" cost to get to more patrons; looks like it isn't working out as well as they thought. I much prefer to actually go to the restaurant and pick up my food to give them the patronage. Then again, I like the restaurants I go to and want them to continue selling me food.

      We had a friend who's son worked for Uber eats and it really exploits its delivery people.

    • Restaurants are not allowed to charge more for Uber Eats

      • +2

        My regular Thai place charges around 25% more through UberEATS.

        • I wonder how they manage that, because they're not allowed to

        • +1

          I've noticed this too at some store. Most places do this because, any orders made through uber eats. Uber eats gets %20 - %30 of the profits made.

      • +1

        That sounds like anticompetitive conduct by UE.

        A bit like resale price maintenance

      • +1

        My local greek yeeros place chargest 35-40% more than usual instore prices.

        do you have a link or anywhere uber eats states this on their site ?

        • I'm a Papparich fan and my local charges a few bucks more per dish on UE. And UE has slashed about 1/2 of the restaurants in my area.

          Its inspired me to cook more and remove th UE app from my phone.

      • +2

        Actually not true, straight from the uber eats FAQ.

        How much does Uber Eats cost?

        Note that prices and offers on the Uber Eats website and in the Uber Eats app may differ from prices and offers in the restaurant.

      • I've noticed a few restaurants around my area that have different pricing for their eat-in menu vs their Ubereats, Foodora etc menu. If it's a small difference I'm not too fussed (since they get charged a ridiculous %). But if it's a noticeable difference (e.g. $28 vs $34), I order from somewhere else.

      • This has changed.

        I'm friends with the owners of a restaurant my girlfriend works at. The owners also part own a Nando's.

        The 'normal' UberEates rate is 35% of the total bill.

        Nando's obviously pay less than this after bargaining.

        They have been allowed to put slightly higher prices on their UberEats menu though (for their own restaurant). Although their takeaway is already 25% cheaper than their Dine In prices. So without having slightly higher prices they would not have gone with UberEats, as it would have made margin stupidly small.

        UberEats was adamant about no difference in prices, but it seems owners are pushing back, due to the significant cut taken.

        The restaurant does have to cop any issues with the 'food' though (IIRC).

  • +5

    Yeah seeing the same, and I'm in Prahran (Inner Richmond). When I started using UE way back when it started, your food will be delivered warm at the time it said it would be. Now the food is often always cold and delivered 15-20 mins later than estimated. Usually just turn on the oven when we order so we can reheat the food straight away but still …

    There doesn't appear to be longevity in UberEats.

    EDIT: Thought I'd add that I'm not seeing the same quality drop in Deliveroo. I haven't had ANY issues with Deliveroo at all, in fact. I wonder if their T&C's are better for everyone.

    • +1

      noticed the same thing with ue, similar area. "The restaurant is preparing your food" but it's actually ready, just no riders allocated to it.
      If you call ue to complain while the oven is heating up, they'll shit $10 credit at you each time ;)

      Thanks for the deliveroo suggestion, I'll try that. Foodora has similar issues to ue.

    • Deliveroo has been horrendous for me. Cold food repeatedly.

  • +51

    Because UberEats is a crappy service right now and consumers often unfairly blames the restaurant for Uber's stuff ups. Worse yet, the restaurant is forced to fork out more food for compensation for UberEat's screw ups all while UberEats maintain they want their cut of the fees. Its a crappy deal for the restaurant and hurts their brand due to UberEat's unfair practices.

    Case in point as a personal anecdote, One time, I ordered off UberEats at 11am expecting food to be delivered by 12pm for lunch. The Restaurant is 1.5Km away so 1 hour was more than sufficient for food to be prepared and delivered. At 11:45, after seeing no movement on the app for some time, I called up the Restaurant to see what was happening. I was told by the restaurant that the food was all prepared and is sitting there for pickup since 11:20.

    It was 12pm before I saw actual movement on the tracker app, indicating that was the time the food was actually picked up. Then I noticed the route the delivery guy was taking was not a direct route to my address and was going in the opposite direction. I then figured out that this was because he was picking up other orders along the way. This meant that he had to drop other orders on the way too. Unfortunately for me, I was also one of the last ones on his route. It was 1pm by the time I got the food on my doorstep. Not Happy!

    I could have walked to the restaurant picked up the food and walked back in a quarter of the time it took for the delivery via UberEats. Yet, they want their cut of the fees from the restaurant. Too many unhappy customers unfortunately blame the restaurant and it clearly does more harm to them then simply not doing delivery via UberEats at all.

    • You Could have, You should have. Will you in the future ?

      • He probably read 10%. That's enough, eh?

    • UberEATS drivers can only collect up to two orders at any one time.

      Source: am UberEATS driver

      • How is this tracked?

  • Oh I wonder if it's permanent, had 4 stores in my SE area yesterday and now there's only 2 this morning. Only tried them once, quick AF but quality was also a notch lower.

  • +27

    The uber business model is scummy and exploitative. I will never use Uber or Uber eats if there are other options available.

    • do you use other "ride-shares"?

      • -5

        No, I catch taxis if I have to, partly because I have access to my old man's cabcharge account and because I don't believe Uber's business model is good for drivers and passengers alike.

        I have only caught an Uber once in 2015 when I had $30 of free credit.

        • +8

          I don't see how it's not good for passengers, nobody does, there's a reason Uber took over so quickly and forced taxi companies to change their horribly outdated ways. The passenger. The issue has always been the drivers and the company itself, I'm an avid reader of international automotive news, I'm well aware of everything which has happened with Uber. I don't use any kind of ride-hailing because I'm poor, but have taxis in Australia caught up yet with easy to use apps, widespread availability, clean cars and higher levels of service? I'm genuinely interested to know, because Uber has never looked sustainable, and if it goes under nobody will accept going back to how things were.

        • +2

          @Adonael: surge pricing is the only negative example I can think of right now. I wouldn’t say Uber cars are cleaner and that pseudo-taxi drivers provide a higher level of service anymore, this may have been the case a few years back when Uber was just a new novelty. My old man has a few taxi drivers on speed dial for airport runs and he knows that he will get at least a mid-size car that is reasonably clean, if he was to get an Uber he might end up in a tiny car.

        • @Adonael: You should know by now that Uber's business model is not so much taking a cut off fares but the collation of big data which they are now starting to exploit and sell to others. This is why they generate so much investment.

          https://www.forbes.com/sites/ronhirson/2015/03/23/uber-the-b…

        • +1

          @Adonael: Uber has been hemorrhaging money since day one. They're still in the grow at all costs mode, and they're hoping that they can be the major ride-share/taxi company, and translate the business into self driving vehicles.

  • +7

    When you file a case and get a refund and stuff, its on the restaurant. For example, I used UE for the first time last week or the week for some Maccas. Took an hour and a bit for the driver to show up to my house and the food was cold. Quoted 15-25minutes wait. Called Maccas to ask what was happening and was told it was sitting there. When the driver finally showed up, I went out to get the food and saw him eating Maccas.

    TLDR; rubbish drivers and UE policies taken out on restaurants.

    • +1

      When you do a chargeback on your credit card, it also is on the restaurant because your bill will be lower whatever it costs in time to fight your chargeback. Uber Eats is no different, except maybe it makes chargebacks for unsatisfied customers easier than calling your bank to perform a chargeback on your card.

    • +3

      "rubbish drivers"

      That's a direct result of UberEats trying to cut costs to the extent they recruit anyone who can download an app and then pay them $4 an hour. Shit company.

    • -1

      Agree with rubbish drivers. I ordered a burger and a drink from a local burger joint. When it finally got delivered, there was only a burger, no drink. I asked the driver where the drink was, and he just shrugged his shoulders saying he didn't know and that he didn't see a drink when picking up the order. You would think that they would check the docket on the outside of the bag before leaving the store. I only had two items and he didn't bring one of them.
      Yes, I was able to get a refund for the drink, but that's not the point. I wanted the drink.

  • I remember when menulog was taking over and I knew two guys that ran food places in the eastern suburbs of Sydney that said it is a double edged sword. At the time they ran their own delivery service in conjunction with menulog, made a much better margin on their own delivery service (staff would drive the orders themselves, no specific "delivery" driver), but menulog gave them a much larger influx of customers from the exposure of being on their service. So they quietly tried to convert new menulog customers off of ordering on the app and calling them directly. Can't say that I ever did that though! App was too convenient.

    Ubereats is another beast all together. Seems to be more disjointed than menulog offering. I've ordered at my suburban maccas and witness the throng of uber drivers their to pick up orders but not to pick up the ones that are ready to go. So some orders you get late drivers to the food place, then they have to get to you, so cold food. While at other times uber drivers waiting 15-20 minutes for an order, when they could be out picking up passengers making a better margin themselves.

  • +1

    So just order directly from the restaurant, it's usually cheaper too.

    • Not when you have a $10 off code from UE

    • +4

      My friends and I went to order from a local restaurant on UberEats yeaterday. One of us loaded the restaurants direvt take away menu on our phone while the other reviewed UberEat’s pricing. There was a huge difference. Each item on the menu was significantly cheaper by ordering direct from the restaurant. e.g. $18 vs $24 for a main meal. So we ended up ordering direct, picked it up ourselves and saved about $30 overall. Though it did help one of us had a car and willing to go pick it up.

    • +1

      LOL only as long as they haven't fired the staff for UE drivers.
      Lots have companies have stopped hiring and offering delivery services directly, all through UE/deliveroo/foodora etc

  • +1

    It is a symptom of our lazy, "couldn't be bothered; don't want to pay" society and Uber are masters at exploitation this weakness. Some restaurants are quick to realise, some are a little slow.

  • +2

    over the past 2 weeks at least 15 places we have order from regularly have left the program

    You should learn to cook for yourself.

    • +1

      I’m actually an amazing cook (if I do say so myself)

      • Dinner at your place.

  • +4

    Uber eats delivery is the worst. At the start it was great. Now the drivers do multiple deliveries in one order and the food arrives slow. I will never use uber eats unless I have to.

    • +5

      Why would you 'have to'?

      • +3

        Isn't it obvious that a gourmet foodie would have all the finest foods delivered?

    • From what I've heard, drivers only get paid for 1 delivery if they receive multiple orders at once. Quite scummy all around.

      On the other hand, I've received free maccas from a wrong delivery once. Unfortunately at the expense of the restaurant now that I've seen the articles.

      • This is not true

        Source: am UberEATS driver

  • +1

    Stick to Deliveroo. UberEats attracts some untrustworthy contractors. And their constant ads on YouTube are irritating AF.

    • +3

      And their constant ads on YouTube are irritating AF.

      the only thing more annoying than the royal wedding spam and the fixed 'watch the wedding live!' ad plastered on youtube mobile all day Saturday

      • +1

        The ads are the reason I am definitely never trying UberEats.

  • +1

    Really, Menulog is so much better in almost every way.

    The food is always cheaper (presumably because Menulog doesn't take a 30% cut) and the delivery drivers are usually based from the restaurant itself. Most places don't tack on a delivery fee (let alone the $5 Uber expects no matter how big your order).

    The only problem with Menulog is that the variety of restaurants I've seen on Menulog is a lot smaller than Uber Eats, which usually has more…'western' food available. Not that there's anything wrong with that, but sometimes I'd like a bit of a change from Pad Thai!

    • -1

      Menulog takes twice the time to arrive

  • On top of that 35%, they also randomly charge $250 misc fee.
    Also sometimes when the driver doesn’t turn up, the meal the restaurant made goes to waste and the business doesn’t get paid. or restaurant is forced to make a second order at their own cost for the second driver.

    • +1

      True. This happened last night at my work. Customer was upset with us for the delay but the food was ready to go and nobody came to collect it. Rang uber and they said there was a shortage of delivery people. We had to cook the meals again so the customer ended up happy.

      • +3

        Yeah, as a customer, this happens to me too. I know it's uber's fault because I called a few restaurants when this has happened.

        The problem is, if the customer just checks the app, it blames the restaurant! "The restaurant is preparing your order"
        .

        I thought of a dodgy little trick you guys can do, as soon as an order is placed, press the "order is ready" button. By the time the rider arrives, it will be ;)

        • Haha with the trick you mentioned, I’d say 7 out of 10 drivers do that to us! The Lenovo machine beeps when the driver arrives, but the said driver often shows up ten minutes after they have supposedly arrived.

          The thing I don’t understand is, I work at a cafe and a lot of customers order coffees like long black. We start making it when the machine shows the driver has arrived. So it’d be sitting here for 10 mins, then takes 20mins to be delivered (estimated- the restaurant doesn’t know when the meal is delivered). Surely the coffees are no good after all these time

        • @Prince K: Yeah it's not the fault of the driver/rider though. There's a shortage and UE takes a while to actually assign the rider/driver.

  • +4

    I've recently had three pathetically poor UE experiences.

    1. Ordered food from a restaurant literally 800m away. Frustratingly watched the driver spend 40mins doing laps around my street trying to find me. Called him a couple of times…. no English. At one point he got within 50metres at which point I called begging him to stop…! No good. UE tried to intervene but they also couldn't communicate with him…….. wow. Order had to be cancelled, ended up reordering from the restaurant and picking it up myself.

    2. I ordered food that had a 7:15PM ETA… which turned into a 7:30 ETA… and then by 7:45 the restaurant called saying they were closing up and no UE driver was in sight, so my only option was to pick it up directly.

    3. Amazingly I fell for number 2 above the very next night.

    I will never use the shitty service again.

    No reliability, all risk sits with the restaurant, customer and the drivers.

    boycottubereats

    • +6

      You ordered from a restaurant 800m away. Peak laziness.

      1. 800m away, why not just walk?!
      • +5

        Because of:
        1. $10 credit from complaining about the last meal being late.
        2. $10 credit from my ozbargain "friends" who sign up with my code.
        3. raining / hot / game of thrones night

  • +4

    Uber Eats is crap. First time used it order was 20 mins late and driver was careless

    He blamed the restaurant as busy the usual excuse but I see him doing rounds and only picked up late

    Deliveroo is better

  • +16

    Giving my own two cents to this debacle of UberEats. I initially drove only with UberX. At one point I decided I might get more income if I also do UberEats delivery so I decided to sign up and started delivering. After a month of doing so having mostly bad experience I stopped delivering UberEats altogether and only drove UberX.

    My experience:
    - because I normally drive a car, that's also what I used to deliver food with UberEats, so the biggest challenge is finding parking. Parking to stop and pick up food from restaurants or cafe. Then parking to deliver the food to the door. For some reason, although the instructions in the app says that some of the restaurants will bring the food to your car, it is rarely the case. Most of the time, I had to either park really far, or park illegally running the risk of getting a fine, to run in and get the food. In some extremely busy area like Surry Hills or CBD it is absolutely impossible to find parking during busy hours. I suppose it's no wonder some drivers decided it's not worth doing the delivery after all. After picking up the food and driving to the destination, I'm also required to bring the food to the front door of the customer. The challenge is again finding a safe parking spot. When I can't deliver to the door because I couldn't find parking, I received bad ratings because I wasn't making the service standard.
    - the pay I get after all that effort? miniscule at best. If I only deliver one food to one customer per delivery, I will be making only less than $20 an hour, not to mention the money I need to spend for fuel. I guess I don't blame the drivers for trying to make the most of each route. Do note that the app itself prompts you to take the next delivery anyway because it deems that they are all within the same route anyway (much like the concept of UberPOOL currently running in Sydney)

    What I'm trying to say is, don't shoot the messenger, a.k.a. the driver, nor the restaurants. UberEats need to do something about their business model.

    • +2

      Sorry to hear but UberEats business model has a serious problem and almost sound like teenage exploitation

  • +7

    Now I feel bad for the UberEats guy I had that delivered me burgers in Hospital on the 6th floor. Thanks bud and I hope you found a better paying job

  • So does anyone know what the %cut of uber eats competitors take? Menu log, deliveroo etc.

    And what they pay their drivers?

    • +2

      Menulog 10% (they don't do very much).
      Uber (taxis) 27.5%
      Taxify 15% and pays bonuses for ever few rides.
      Olacabs 7.5%

      Would like to know deliveroo and Foodora rates

      • Wow that's terrible. I normally use deliveroo for food delivery but uber for taxis, I'll probably start looking at olacabs now (taxify not available in Perth yet)

        • I avoid Uber as they have been more expensive than Ola and Taxify on everytime I have compared them.

          I also avoid Uber as I don't think the way they treat the drivers is fair.

        • +2

          by the way, as an anecdote, I overheard one guy who now works for Taxify used to work for either Foodora or Deliveroo (my memory's fuzzy)
          Anyway, to my knowledge they supplied a tablet like ipad or android to each new restaurant that signed up to their platform.

          Usually after a few months (or maybe one year?) they will provide an upgrade / replacement so restaurant gets the new one and the company takes the old tablet back.

          Question is: to whom or where do these old tablets go? They can't really sell it nor return it so this guy decided to buy it all off the company. I think he paid only about $5 - $10 per tablet and there's close 2k - 3k tablets.

          Now he uses his free time selling these on gumtrees / ebay etc etc … making ridiculous fortune (while still holding a full time job)

          just, WOW!

      • +1

        Deliveroo charge 30%

  • +1

    I was eating Vietnamese in Fortitude valley on Friday night and saw many meals sitting on the counter for over 20 minutes before an uber eats driver picked them up. Not hard to figure out how people could receive their meals and it be cold.

    • Yeah happened to me ordering Yiros estimated delivery was 30 mins then changed to 45 mins and then the driver delivered another order before mine. Arrived cold but managed to get a refund and had to microwave the food, felt bad for the Yiros copping the refund as it wasn't their fault

  • +6

    Uber anything is trash. Stop supporting this scummy company so they drop off and someone better takes over that doesn't treat people like shit.

    • +1

      There is an endless supply of people to exploit. From my observations, new migrants to Australia are drawn to Uber, pyramid schemes, paid charity collection, etc. Why? Mainly because they have few other employment options and are willing to work for almost nothing until they get disgruntled and give up. Then the next worker comes along.

    • Agreed.

  • +1

    Every time I have ordered UE it has been delivered Ice cold and have had to email and get my order refunded which means its taken from the restaurant and not UE, where as Menu log I've never had a problem.

    https://www.productreview.com.au/p/uber-eats.html Alot of people complaining about stone cold food or it not even being delivered.

  • +1

    I didn't realise they took 35%… Wow, that's really greedy.

    • +3

      And they also charge customers $5 delivery fee… just like banks they charge both ways

      • $5 delivery fee is still cheaper than any other services to my knowledge

    • Don't worry we can just buy cheap stuff from China again and then the cycle of whining will come to a complete circle

  • Not worth it. Too expensive.

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