In today’s fast-paced food industry, delivery platforms like Uber Eats have shifted from a "nice-to-have" to an essential tool for restaurants, cafés, and take-aways. But while the potential to reach more customers is undeniable, the costs can be steep.
Is Uber Eats right for your business?
This guide breaks down the benefits, operational realities, disadvantages, and how partnering with Uber Eats can actually serve as a powerful marketing exercise for your brand.
Benefits of Using Uber Eats for Your Business
1. Immediate Visibility & Customer Reach
Uber Eats exposes your business to thousands of active users searching for food right now. Appearing on the platform puts you in front of a "hyper-local" audience who may never have walked past your physical storefront. It taps into the lazy economy—customers who want your food but aren't willing to travel for it.
2. Convenience Wins Sales
Consumers prioritize convenience above almost everything else. Delivery apps reduce the friction of buying; customers can browse, order, and pay in seconds. If you aren't offering delivery, you are voluntarily handing market share to competitors who are.
3. Boost Sales During "Dead" Times
If your dine-in traffic is inconsistent (for example, quiet Tuesdays or rainy nights), Uber Eats can fill the gaps. It provides incremental revenue—money that helps cover fixed costs like rent and labour, which you have to pay regardless of how many tables are full.
4. Easy Setup & Logistics
Building your own delivery fleet is expensive and an insurance nightmare. Uber Eats handles the logistics, driver tracking, and payment processing. This allows you to focus on cooking rather than managing drivers.
5. Data & Insights
The platform provides analytics on ordering behaviour. You can see which dishes are popular, where your customers are located, and what your peak times are—data that can help you optimise your menu and operations.
Things to Consider Before Joining Uber Eats
1. The "Commission Tax"
This is the biggest hurdle. Uber Eats typically takes a commission (often between 30% to 35% for delivery orders). You must factor this into your pricing strategy. Many venues offer a "delivery menu" with slightly higher prices to protect their profit margins.
2. Menu Engineering is Crucial
Not every dish travels well. Steaks can go cold; fries can get soggy.
- Audit your menu: Remove items that degrade quickly.
- Modify items: Swap thin fries for wedges (which hold heat better) or put sauce on the side.
- Simplify: Offer a reduced menu to keep kitchen operations smooth.
3. Operational Workflow
A delivery tablet pinging during a Friday night rush can break a kitchen. You must ensure:
- Orders are prepared on time (drivers hate waiting).
- Packaging is stocked and accessible.
- Staff have a dedicated station for packing delivery orders so it doesn't interfere with dine-in service.
4. Brand Control
Once the bag leaves your counter, the experience is out of your hands. If a driver flips the bag or arrives late, the customer often blames the restaurant, not the driver.
Tip: Use tamper-evident stickers and high-quality branded packaging to reassure the customer that the food left your kitchen in perfect condition.
Disadvantages of Using Uber Eats
1. Reduced Profit Margins
If you don't adjust your pricing, the commission fees will eat your profits alive. You cannot sell food on Uber Eats at the same price as dine-in and expect the same bottom line.
2. Loss of Customer Relationship
You don't own the customer data. You don't get their email address for your newsletter, and you can't upsell them a dessert at the table. You are strictly a food provider, not a host.
3. High Competition
You will be listed alongside dozens of direct competitors. To stand out, you need professional photography, a high rating (4.5+), and compelling menu descriptions.
How Uber Eats Becomes a Marketing Exercise
Don't just view Uber Eats as a sales channel; view it as a paid marketing strategy.
1. The "Digital Billboard" Effect
The platform places your brand in front of local customers. Many people discover a restaurant on Uber Eats, enjoy the food, and decide to visit in person for the full experience later. This is effectively "paid sampling."
2. Social Proof Through Ratings
High ratings on Uber Eats act as trust signals. A strong digital reputation often translates to higher foot traffic and better Google Map rankings.
3. Photography as a Hook
Investment in high-quality food photography for the app is essential. These images are your "shop window." Delicious-looking photos capture attention and can be reused on your Instagram and website.
4. Promotional Tools
Uber Eats offers marketing levers you can pull, such as:
- "Buy 1, Get 1 Free": Great for moving excess stock.
- $0 Delivery Fee: Increases conversion rates.
- Featured Placement: Boosts visibility during quiet periods.
5. Retargeting
Once a customer orders from you, the app’s algorithm is more likely to show them your venue again. You are paying for the first acquisition, but the second and third orders are easier to get.
Frequently Asked Questions (FAQ)
1. Is Uber Eats worth it for small businesses?
Yes—provided you price your menu correctly. If you treat it as a marketing channel that brings in extra volume, it is highly effective. If you rely on it as your only source of income, the margins can be tight.
2. Can I set my own delivery prices?
Uber Eats sets the delivery fee the customer pays to the driver. However, you have full control over your menu prices. Most venues mark up their delivery menu by 20-30% to offset commissions.
3. Do customers prefer ordering directly?
Many loyal customers prefer ordering directly to support local business, but the mass market prefers the convenience of an app that stores their address and credit card. Offering both is the best strategy.
4. What if I can’t handle high order volume?
Uber Eats allows you to "pause" orders or switch to "busy mode," which extends prep times. This prevents your kitchen from drowning during peak service.
5. Can Uber Eats help me attract new customers?
Absolutely. It is one of the fastest ways to get your food into the mouths of customers who live within a 5km radius but haven't visited you yet.
Conclusion
Using Uber Eats is a trade-off: you sacrifice margin for volume and visibility.
It can be a powerful way to grow your business and keep your kitchen busy during quiet times. However, it requires a strategic approach—specifically regarding menu pricing and packaging—to ensure it remains profitable. Treat it not just as a delivery service, but as a marketing engine that pays for itself.
