Uber to bring surge pricing delivery fees to UberEats
Fri 28 Oct 2016
Having introduced UberEats earlier in the summer, and taken out local rivals in the effort, Uber has now announced its plans to introduce its contended surcharge pricing model to the food delivery app.
‘We’re asking UberEATS customers in select cities to pay more for delivery when they order from restaurants in areas where demand is high but delivery partners are scarce,’ wrote product manager Ben Dreier in an official blog post.
Dreier explained that the app will now notify users of the new charge with an arrow below the restaurant name. ‘The exact amount appears above the menu, and as a separate line item before checkout and on the order receipt,’ he noted.
The additional fee is destined towards boosting ‘financial incentives for delivery partners as well as our other operational costs,’ Dreier continued.
The blog post suggested that the new delivery pricing will both improve the reliability and speed of service.
While no date or fixed plan has been announced, the surge pricing model will first roll out in the States, in cities including Phoenix, Houston, Dallas, Washington DC, Miami and Atlanta.
The food delivery app now covers 43 cities worldwide and is fighting to steal driver and user loyalty away from local competitors. In London, the service competes directly with rival Deliveroo, and recently folded startup Take Eat Easy.
The fight for market share has seen Uber dish out a small fortune to Londoners in referral codes and delivery refunds.
Just months after UberEats landed in London, Deliveroo faced strike action from delivery drivers in the city. The company was looking to introduce a fixed rate of £3.75 per delivery, rather than the £7 per hour plus £1 per delivery they used to earn. In August the business confirmed that it would not force drivers to sign the new contracts and allow them to work under the previous pay arrangement.