Uber Eats and Postmates Introduce New Tiered Commission Pricing

September 16, 2021

Photo courtesy of Future Car

Just yesterday, both Uber Eats and Postmates introduced their new 3-tiered commission pricing model; the model, for operators, will have a base rate of 15% and will extend to 30% for the most comprehensive tier. 

Operators will thus have the choice of 3 options:

  1.  Lite 
    1. Benefits 
      1. 15% commission fees
      2. Restaurants will appear in direct search results 
    2. Drawbacks 
      1. Restaurants will not appear on Uber’s homepage
      2. Restaurants will not receive ad spend or benefits from Uber Eats pass members 
    3. Details
      1. According to Uber, this option is best for operators who want to save the most on fees – because the rest of them will be passed on to the customer instead 
  2. Plus 
    1. Benefits
      1. 25% commission fees
      2. Restaurants will appear in direct search results
      3. Restaurants will appear on Uber’s homepage 
      4. Customers who are Uber Eats pass members will receive benefits from ordering from the restaurant 
    2. Drawbacks
      1. Restaurants will not get extra ad spend 
    3. Details 
      1. According to Uber, this option is best for operators who want to balance cost optimization with marketing options
      2. The rest of the fees will be passed on to the customer 
  3. Premium
    1. Benefits
      1. 30% commission fees
      2. Restaurants will appear in direct search results
      3. Restaurants will appear on Uber’s homepage 
      4. Customers who are Uber Eats pass members will receive benefits from ordering from the restaurant 
      5. Uber will match extra ad spend – up to $100 
    2. Drawbacks
      1. None, according to Uber!
    3. Details 
      1. According to Uber, this option is best for operators whose establishment(s) is in digital growth mode 
      2. Minimal fees will be passed on to customers 

Until now, Uber Eats had stated that it offered the same pricing package and services for all of its operators; the package reportedly included: food safety, marketing, technology, and customer service capabilities. With the introduction of this new pricing structure, however, operators finally have more transparency to decide with. According to Uber Delivery Vice President U.S. and Canada, Sarfraz Maredia, “In late 2020, in response to feedback from Uber Eats restaurant partners, we began testing new ways to offer even more choice and control over the fees they pay and the services they use when working with us. Designed with input from thousands of restaurants across the U.S., we’re excited to make these new pricing options available nationally.” 

DoorDash unveiled the same tiered pricing scheme back in April and, now, both service giants (along with Grubhub) have sued New York City for its cap on the fees they can charge to restaurants – which is technically the “Lite” tier. 

Founded by attorneys Andreas Koutsoudakis and Michael Iakovou, KI Legal focuses on guiding companies and businesses throughout the entire legal spectrum as it relates to their business including day-to-day operations and compliance, litigation and transactional matters.

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