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The Uber Eats Merchant Program Explained For Restaurants

Learn how the Uber Eats Merchant program works for restaurants and learn whether or not it's worth the cost.

Key Takeaways

  • Gain access to a wider audience and new revenue stream.
  • Choose from flexible delivery options: self-delivery, Uber delivery, or customer pickup.
  • Utilize sales data and KPIs for strategic business growth.
  • Benefit from three tailored pricing plans: Lite, Plus, Premium.

How Does Uber Eats Work for Restaurants?

Uber Eats allows restaurants to connect with more customers through its app and website.

Restaurants partner with Uber Eats to increase their visibility, leverage Uber Eats’ marketing efforts, and tap into the growing demand for food delivery, especially as consumer habits shift towards staying in and enjoying meals at home.

Restaurants are responsible for preparing orders, which are then picked up and delivered by Uber Eats drivers. There’s also an option to use a restaurant’s own staff for deliveries while still processing payments through the Uber Eats app.

Restaurants can join by signing up for one of three pricing plans: Lite, Plus, or Premium, with Uber Eats charging a marketplace fee of 6% to 30% per order.

This platform is suitable for various types of establishments, including traditional restaurants, those new to delivery services, and ghost kitchens, which are optimized for delivery and carryout with lower overhead costs.

Did you Know?: Food preparation facilities set up for food delivery or carryout only are called Ghost Kitchens.

These types of kitchens reduce costs for restaurant owners in the form of reduced overhead expenses.

What Is an Uber Eats Merchant Partner?

Uber Eats offers this program to restaurant owners, convenience stores, and retailers, with over 890,000 merchant partners in six continents and over 11,000 cities.

You can select from one of two services as an Uber Eats Merchant Partner, even opting for both if it’s in your restaurant’s budget.

Uber Direct

The first is Uber Direct, a white-label delivery service.

Your customers won’t interact with Uber Eats directly; integrate this through the platforms and point-of-sale systems you already use for fast and simple onboarding.

Uber Eats doesn’t charge a marketplace fee under Uber Direct, meaning you can skip the commission costs.

You can also set the delivery time for orders, such as within two hours, within the same day, or scheduled for up to 30 days in advance (which is perfect if your restaurant offers catering services).

Here’s how to begin:

Open up Uber Direct to your customer base, let them place orders, and then allow the Uber Eats delivery network to get the order there safe and sound.

Along the way, you can provide tracking information to your customers in real-time, including an estimated time of arrival.

Uber Eats Marketplace

The other service under the Uber Eats Merchants program is called the Uber Eats Marketplace. This program is more straightforward to navigate.

Essentially, when your restaurant receives an order, it’s business as usual to prepare it to perfection. Next, tap into Uber Eats’ vast network of more than five million global delivery drivers to get the hot food sent in time.

If you’d rather, you can even have your own delivery drivers take care of all delivery services under the Uber Eats Marketplace, which can help your restaurant save money.

Another way to save some cash is by allowing customers to pick up orders themselves.

As with the Uber Direct program, the Uber Eats Marketplace provides real-time data on the progress of customer orders. You can also set the delivery radius to increase your audience base.

Batch orders are available for more expedient delivery.

Did you Know?: Food preparation facilities set up for food delivery or carryout only are called Ghost Kitchens.

These types of kitchens reduce costs for restaurant owners in the form of reduced overhead expenses.

What Are the Benefits of Being an Uber Eats Merchant Partner?

Are you still on the fence about joining the Merchants program? The following benefits should help you decide.

New Revenue Stream

The restaurant failure rate continues to be high, with the chances of failure within the first five high-risk years being anxiety-inducing. If your restaurant needs a revenue boost, joining the Merchant Partner program is an excellent way to do it.

You’ll gain access to a larger audience thanks to your Uber Eats delivery partner, increasing your establishment’s profitability.

Excellent Flexibility

Merchants have lots of ways to customize this program for their needs. For example, there are two programs to choose from, with the Uber Eats Marketplace especially offering a lot of flexibility.

You can select from customer pickups, send your delivery drivers to take care of orders, or let Uber drivers do it.

Sales Data at Your Fingertips

Another huge advantage of working with Uber Eats as a restaurant owner is the wealth of sales information you’ll receive after menu setup.

You can review key performance indicators that matter most to your business, including your rate of profit margin.

This data is critical as you establish your new business. Even once you gain your financial footing and build ongoing partnerships, you should continue to measure KPIs on the Uber Eats platform to predict what your financial future will hold.

Affordable Pricing

Uber Eats Merchants can choose from three pricing plans according to their respective budgets.

  • The Lite plan charges six percent for orders customers pick up and 15% for all delivery orders. Your business name will be searchable in the Uber Eats App.
  • The Plus plan increases your exposure. When member customers use the app to order a meal, the delivery fee is waived due to Uber One benefits. Another perk of this plan is the heightened visibility in the app. Uber Eats collects payment for the Plus plan as follows: a 6% fee for orders customers pick up and a 25% fee for deliveries.
  • The Premium plan is the costliest but most inclusive. If you shell out for advertising, Uber Eats will match your ad spend up to $100 every month. You also won’t pay any fees for the service for the first six months if you don’t get more than 20 orders. Your name will appear in the Uber Eats App, and you’ll have Uber One benefits. Joining the Premium plan means paying 6% for pickup orders and 30% for deliveries.

How Do You Become an Uber Eats Merchant Partner?

Joining Uber Eats as a merchant partner couldn’t be easier. Here are the steps.

Step 1: Visit the Uber Eats Merchant Page

Uber Eats has a service page for its Merchants program here. Aspiring Uber Eats Merchants who don’t have an account will have to create one.

Step 2: Sign Up for the Service

The registration form requests your store address, store name, brand name (if it differs from the store name), and your full name, email address, and phone number.

Step 3: Put Together Your Menu

Next, it’s time to create your restaurant’s menu on Uber Eats. Upload titles and descriptions for each menu item you’ll sell through the service.

Include photos of as many dishes as you can, as they’ll appear on the Uber Eats app and incentivize hungry customers to order.

Most importantly, don’t forget to price each item! You can use the same pricing as in your restaurant or increase the costs slightly.

Step 4: Complete Customer Orders

Wait for your first order on the Uber Eats platform to come in. Once it does, determine how you’ll fulfill it, whether your restaurant takes care of orders and manages deliveries or you allow Uber Eats drivers to do it.

Whichever solution has the best delivery times should be the one you choose.

Step 5: Receive Payment

Becoming an Uber Eats Merchant means giving a cut of the profit to the Uber Eats platform. After the commission is taken out, your restaurant will receive the rest of your earnings.

Step 6: Accumulate Reviews

Reviews will naturally come in once customers taste your good food, but you can also encourage them by using social media, email, and your website to ask customers to share their thoughts.

Incentivize your audience to review your restaurant by offering a reward, such as a discount code good for their next meal.

Is Uber Eats Worth it for Restaurants?

From viral social media posts to news articles, there’s been a lot of chatter about whether Uber Eats is a good option for restaurants in the long run.

Here is the primary question to determine whether becoming an Uber Eats merchant is worth it for you: Are your profit margins greater than 30%?

With service using Uber Eats drivers, you’ll be paying out 30%.

Therefore, independent restaurant owners must carefully calculate their numbers.

Consider not only the increased volume of sales but whether you’re actually making a profit.

Even if your profit margin is over 30% (or 15% if using your own drivers), is it enough to be worth the commitment?

Don’t forget about the importance of the entire restaurant experience.

Would customers choose to come to your restaurant in person if an on-demand food delivery app wasn’t available?

The benefits to eating in-house include potential upsell from your wait staff, alcohol and beverage sales, and meal add-ons like appetizers and desserts.

Wrapping Up

Uber Eats Merchants is part of an exclusive program seamlessly integrating order fulfillment for popular restaurants in the local area.

If you’re ready to start accepting orders, you can use this program to spread your business information, increase your customers, and bolster your revenue, all with affordable pricing.

While the steep fees are certainly a downside, more restaurants have turned to the Uber Eats Merchants program for reducing delivery times, building their brand, and streamlining business.

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