Next month marks five years since we switched the Uber Eats app on in Australia.
Just as it was on day one, Uber Eats is focussed on connecting more eaters with more restaurants across Australia. As we continue to evolve as a business we are looking at ways to better provide the convenience people want, with the value restaurants need.
Today, to help realise both those goals, we are trialing a new way of calculating costs that links the amount you pay for Uber delivery to two key factors: an eater’s distance from the restaurant, and the amount they’re ordering.
This will see us split the fees for Uber delivery orders into a Delivery Fee and a Service Fee, enabling more nuanced pricing options across a variety of order sizes.
For eaters, this means our standard Delivery Fees will be reduced to as low as 99 cents, while the Service Fee will start at $1 and be capped at $4. Total delivery charges will be calculated as follows:
|Order Size||Less than $10||Between $10 and $40||Greater than $40|
|Fee Payable||From $1 + Delivery Fee||10% Order + Delivery Fee||$4 + Delivery Fee|
The majority of eaters will see minimal change overall, while some will pay less and some will pay slightly more.
All fees will be clearly outlined throughout the ordering experience. The Delivery Fee will be displayed after selecting a restaurant, because it relies on an eater’s distance from the restaurant, while the Service Fee will be confirmed at checkout, because it is based on the cost of items in the cart and handling required to complete the order.
As always, the total of each fee will be displayed before eaters confirm their order.
This trial will not change how we calculate what delivery people are paid or what we charge merchants.
Taken together, the Service Fee and Delivery Fee will be used to cover the costs of operating a delivery business so that we can continue to connect more eaters with more restaurants across Australia.
The trial will apply to approximately half of our account holders across Australia, chosen at random, which will provide a large enough sample to assess its workability.
App users enrolled in the trial will only see a Service Fee added to Uber delivery orders – no Service Fee will be added when users pick up their order in store or when a restaurant uses its own delivery staff.
As we continue to grow, we’re continuing to learn and we look forward to the opportunity this trial will provide to collect feedback before we make a decision on next steps.