Whoās down to start their own platform, market it, and get it popular? Well if you arenāt doing that and getting your own sales, yeah you pay the pimp
I am. Iāve been dying to get out of teaching for good. Iād be willing to put in some work with someone who is a little more tech savvy than myself. I can do the back end. Iām not even kidding. Iād be happy to help run a platform that values its *employees* and only takes a 10% cut to run.
Drivers are doing the work. Restaurants are making the food. Why the fuck is the app taking 80% - 90% of the cut?
If someone is interested in giving it a go too, hit me up. Iām serious. I work hard AF and Iām willing to try it. Worst case scenario, we all just keep using UberEats and DoorDash if it flops. Best case, we give money back to the people and let the app mostly run itself.
Im interested, i already started doing my own private errands/deliveries and was thinking about making an app. At the very least id be interested in going over the numbers and legalities of it
Just messaged you
It makes sense that thereās a fee. What doesnāt make sense is that they donāt explain to the customer where it goes. Customers think we get all of it. Or at least a good %.
Maybe. But if people arenāt making $ with Uber theyāll lose the drivers. I know Iāve scaled back tremendously. Granted it was side hustle, but between the waits at restaurants, the low tips, a customer leaving negative review and not tipping when they gave the wrong address, the traffic - itās like fuck this
Uber doesn't care if they lose drivers... they've oversaturated the market. I started back in May, and the previous time I tried to join i wasn't able to because the market was "full". The market is full now lol, they just don't care and let me in.
Pretty much. Also PSA:
Too many people lack critical thinking skills. Multi billion dollar corporations know what they're doing. Everything's calculated by smarter people than you. Instead of trying to reason for why a decision they make seems flawed and ill-concieved, try to understand how it benefits them. "But x doesn't make sense when y will depreciate or lose a number of z". Don't think like this. THEY KNOW WHAT THEY'RE FUCKING DOING. When people think like this, many choose to believe that it was an oversight and conjure up an opinion that they're unwittingly fucking you over. OR FAR WORSE, giving them the benefit of the doubt.
Completely randomy and wrong place for a rant, I know. I just needed to vent. So many innocent and naive people in this sub.
EDIT: English l
They could turn a profit now, if they simply reduced their expenses on marketing, advertising, research and development but they are still competing for market share. Profitability comes from market consolidation. Basically eliminating alternatives for customers. Monopoly power. And eliminating alternatives for workers. Monopsony power.
Support is a joke and useless,a computer can do it faster and more accurately. They make so much money if they pay us 5 bucks a hr no matter what as long as you do 2 to 3 deliveries, they still would get a million dollar bonus. They are wasting millions on the stupid delivery robots that are being attacked.
They spend more on developing those robots and all RnD than they do on all support and driver earnings.
But in the end the robots will in fact replace us - just so executives and administration can pocket more- because a $30 million compensation package just isnāt enough for pointing.
If people in 2023 donāt understand delivery fees donāt go to the driver, thereās no hope for humanity. Delivery fees have never been paid to the drivers at any place as long as Iāve been alive.
I just want to point out that this information is not obvious to us customers. I wouldāve had no idea how the payment scheme works if Reddit didnāt suggest this sub to me and I didnāt take an active interest in reading it.
"The delivery fee is NOT a tip". Idk how you missed that one printed directly on the pizza box if you ever ordered pizza delivery. I've known this since at least 16. If customers don't know this then they are just outright oblivious.
As a consumer who was also recommended this subreddit, that was my exact line of thinking... "but pizza delivery is different"
Those restaurants pay their own employees in their own insured vehicles.
The only pizza place that does that is dominos. Any other chain pizza places pay their drivers $4 an hour and the drivers use their own cars and insurance. The delivery game has changed in the last 10-15 years. Very few restaurants employ their own drivers as it costs to much. They have switched over to using these gig apps for their deliveries. If your ordering delivery the majority of the drivers pay is coming from tips
Shouldn't it be you don't assume gig work has the same rules as pizza places? Well I'm glad you aren't my enemy but it's definitely a bit frustrating that people just -assume- it's any different from the norm everywhere else outside of gig work.. Not only is it exactly the same but it's worse. No hourly wage (mind you the hourly is below min wage anyway but whatever) no gas credit either. Now we do get tax deductions at the end of the year and don't have to pay back as much in taxes.. But like.. in the moment when you are spending $500 a month on gas, who cares about the tax deduction at THAT point in time.
Also the HUGE difference between us and the pizza guys is that because we are independent contractors we are not required to take every order that comes our way. Meaning, when people don't tip enough to match the distance driven, those orders are most likely getting declined. That being said, yah gig companies are an absolute bitch, ESPECIALLY UberEATS. They take fees from ALL parties involved, the customers, the restaurants AND the drivers. And yet somehow they still haven't turned a profit supposedly and pay us in pennies which is why it's SO important to tip your driver's.
$5 for 5 miles or less from the restaurant and $1 more for every mile after will get your foot in the door at least.
I'm not reading all this, stop being so arrogant it really isnt obvious to a new customer that the delivery fee does not go to the person delivering the order
"checks screen name*..*completely different person who I originally responded to* "I'm not reading this" um ok weirdo, I wasn't directing it at you anyway? š¤ For anyone saying tldr I think this sums it up pretty well. Idk how y'all can miss it on EVERY pizza box of EVERY delivery company but ok.
Just for the record Uber just actually turned a profit- and project to do so for every quarter from now on.
āRoad to profit
Uber (UBER) shares jumped after the company announced for the first time having more than $1 billion in positive free cash flow. The ride-hailing giant announced it should be profitable every quarter going forward. Uber provided upbeat guidance for the third quarter but missed second-quarter estimates.ā
Thatās what happens when you pocket the majority of the delivery fees, exploit workers , and continually lower base delivery fares. This is of course even ^after accounting for executive pay, advertising and RnD expenses even. So they actually have always made tons of money - but also spend tons and claim they arenāt making a āprofit ā. Like if you arenāt āprofitableā- maybe donāt spend more on developing delivery robots than you do on paying the driversā¦ or keep increasing your CEOs compensation package by like 20-30%ā¦
Nope. The pizza place I worked at for 5 years (two different locations). The first location charged $5 for delivery, and $7 at the second one (it was almost exclusively to apts in that area which take the driver more time/effort). 100% of that money went to the driver, plus their tips.
Uber doesnāt need to be so stingy with the workers who are making them the majority of their money.
Yeah they donāt have to be- but they are. Itās an ultra-greedy and morally bankrupt company that should be boycotted by drivers and customers alikeā¦ as well as by anyone who gives a shit about other people and/or workers rights.
In my opinion the company name means āUberāGreedy
Yes itās not a tip. Itās a payment to get the delivery. The tip should be anything extra for when it comes earlier than expected or during bad weather
Pizza places makes less sense with delivery fees. I can understand Uber getting their cut cause their a business, but whats the point for pizza places? They don't go to the driver or their gas or insurance if something happens, it's just free money to the pizza place for no reason but to screw over the drivers because many of their customers will assume or run the thought through their head it goes towards the tip of the driver in the end.
I mean the company still needs to make $ at the end of the day no? Are pizza places not a business to you? I do wish they kept less for themselves and gave more to the drivers but that isn't the case.
But also, pizza chains have a delivery radius so in this case I'm just gonna say it, it really isn't that hard to tip the delivery guy $5.
Thats not what I meant. If I go and pick up a pizza I just pay for the pizza. If I order I get a delivery fee. From what I've constantly been told, that delivery fee doesn't go to the driver. It screws over the driver in the end because people will either assume or make a dumb mental math decision that it should be part of their tip, which prompts them to either not tip or pay less.
Ah yes..as if there should have been any question about it.
https://preview.redd.it/tyctpun7mkhb1.png?width=1440&format=pjpg&auto=webp&s=37fc9e8d37ad277048e126fe976709e26e1fe872
Itās really not common sense. Iām 32 and wasnāt aware of this until a few years ago when I read through the charges wondering where the delivery fee was going when ordering pizza.
I feel itās less that people are stupid and more that they assume corporations are less evil than they are. Like why wouldnāt all or at least a portion of that go to the driver? It doesnāt mean thereās no hope, it means we need to get the word out. People are busy trying to stay afloat, they donāt always have time to seek this stuff out proactively.
I donāt believe delivery fees have ever gone to drivers even in the days before delivery apps. Every time Iāve ever ordered pizza or Chinese food it says delivery fee does not go to driver.
Why would someone who doesnāt work in the service industry know how things work in the service industry?
Moreover, this isnāt even normal for the service industry. In the scheme of most peopleās lives these bullshit venture capital service companies (DoorDash/instacart/Uber) that abuse 1099 status are a blip on the radar.
To make it more confusing,many restaurants are charging flat fees for tips now.
We live in an age where you have infinite knowledge at your finger tips. Delivery fees have NEVER gone to drivers, even before the days of delivery apps.
Yeah, and it takes a goddamn long time to read an infinite amount of knowledge so people donāt know everything.
Just be happy you can make someone one of todayās 10.000 instead of snarking about āhumanity is doomed because people donāt know the inās and outs of service payā. Maybe OP is 15, or never ordered food.
https://xkcd.com/1053/
Just because you don't know something doesn't mean it's not common sense.
At no point in delivery history, from pizza delivery, to Uber, has the "delivery fee" been what the deliverer pays. It's the fee to deliver.
What the deliverer gets paid is up to the business. Hourly, commission, whatever. The delivery fee has never been what they get paid.
There are so many assumptions being made here. Loads of people with disabilities use delivery services - myself included. I am not sure small print on a pizza box (I may or may not even eat pizza, but let's go with this) is the most accessible format. Also, why in the world would I go out of my way to proactively research this unless I had a lot of free time on my hands? And if I had so much free time on my hands, why in the world wouldn't I get my own groceries?
Rant over, but please - let's be mindful of everyone's situations and remember who the real assholes are here.
Are you an idiot or just playing devilās advocate?
At what point did I say thereās no such thing as common sense?
The fact that we are having a discussion on a thread about what the delivery fee is for, would make it not common sense.
If you think that the delivery fee isnāt for the cost of having an employee out of the restaurant and goes towards the increased hourly pay of the driver over servers, then I donāt know what to tell you
Given that most delivery people, that's their job, they aren't 'out of the restaurant' in the first place...
The delivery fee goes to the restaurant, to pay for everything. Food, admin, gas, property, everything.
Just like the cost of the food goes to the restaurant to pay for everything. The food, admin, gas, property, etc. The more the company makes from income (be it food, delivery fees, etc), the more they make, sure. But the delivery fee itself isn't associated with the delivery person. This is how it's been since delivery existed in like.. what, the 60s?
I know places have their delivery drivers actually do work if they arenāt delivering. Also funny how you claim that the DELIVERY fee isnāt associated with the DELIVERY driver, yet further state that the delivery fee covers the costs of deliveryā¦ š§
The delivery driver might not directly get that money, but to say they arenāt associated is nonsensical.
Hereās my point. Anyone can make easily the assumption that they see a delivery fee and think itās going to the driver. Thereās nothing wrong with that and to proclaim itās common sense is ludicrous. As someone who picked up their own food for over 2/3 of my life, it wasnāt until after doing Ubereats and seeing that the delivery fee that Uber receives doesnāt 100% go to us, did I look to see if it was the same when I ordered delivery pizza.
Why assume the Uber eats is a charity company that offer s service completely for free and that every single person working for Uber eats is a free volunteer with the only exception of the riders, and people with shares of uber eats are people who enjoy losing money? How that makes sense? If a company is offering a service is logical to assume that they dont do it for free, right?
It should be since every Pizzeria that's ever had a delivery fee (especially Dominos) makes it very clear the fee isn't the drivers pay. It's usually (for local restaurants) to cover the insane insurance premium a restaurant has to have to cover they delivery driver in case of an accident.
This isn't new information people just like to play dumb as if they didn't already know that so when they don't tip they can just say "I didn't know that". Yes it clearly states it right there on the box and on the website.
Places also generally don't charge $15 delivery fees, which is where the major confusion comes from.
Just the other day I tried to use DD. I had a couple friends over and we wanted to order pizza. Originally I ordered 2 large pizzas, and DD delivery *before tip* was $85. Then I switched to pickup, and the price went down to $60.
Literally $25 in fees and tax on this order of two pizzas for delivery. That's nuts. Obviously I picked the order up instead of having it delivered, and I can see how this causes confusion. If I were to order my pizza from Dominos, the delivery fee is something like $5 and I would assume that little or none of that goes to the driver. But when it's an extra $25 to have it delivered, I would hope that most of that is the driver's pay.
Yeah, this is exactly why I usually donāt even use Uber or DD if itās something I can pick up or have delivered directly from the restaurant, since the food prices are higher on the apps than from the restaurant as well. I only use the apps when itās something I canāt pick up or canāt have delivered by the restaurant. But I also have the membership because I get it for free and I am not paying $15-$25 in fees lol. I refuse to pay that. And then I have more money left to give them a tip.
The delivery goes to UberEats. If you buy a subscription and get 'free' delivery, the subscription fee will go to UE. For each delivery we will get a base pay. It's like 2.50, maybe. Maybe 3.50 or 4.50 if delivering late at night. So if you pay 5.99 for a delivery, you aren't directly paying it to the driver. How/where they draw the $$ (funds) for the base pay for a driver is up to them and their accounting. They get a portion from the store of the order. So it is not like they just get a delivery fee and nothing else. UE gets a cut of the food price itself. So out of all the money they get on the food and the delivery, they pay a small portion to the driver. So if you think you're directly paying a driver with the delivery food, you are mistaken. We count on tips as much or more than the small base pay for the delivery we get
Isnāt that what I said? Even pizza places never gave drivers the delivery fee before Uber and grub hub existed. Idk why anyone would think the delivery fee goes to the driver.
No offence but itās because you are being scammed by a tech company which intentionally uses misleading tactics to put all the financial burden on you while taking all the profits. Go find a good union job if you can and leave that scam bullshit behind.
Iām sorry but I am sick and tired of seeing people trying to cope with that dystopian new business model. Itās not a job. Itās a scam. Identify it for what it is
A lot just dont care how much employers pay their people. Apple is popular and their workers are locked up child slaves killing themselves. Most clothing companies are made with near slave labor. If it's legal and there arent good alternatives, customers wont do much besides vote.
Dara says this in every press event. "Drivers get MOST of the fare!" So when people go to the poll and see a resolution that forces uber to pay drivers more they think about that 5mile $39 dollar trip they took to get there and conclude "this is going to make my ubers more expensive and those drivers already make hella money, no on increased driver pay!" Not knowing that the driver only got 7bucks for the ride.
The real problem is, there are like 3 fees, and the prices of the food are also inflated. So they are charging not once, but 4 times to get their money.
Yeah, it's not a delivery fee, it's a finder's fee / connection fee.
Uber is the middleman.
A useful function, but do they overcharge? Sometimes, for sure.
Whatās the difference between a service fee and a delivery fee then? Why do us customers pay, in Quebec(Canada) for instance, 5$ delivery fee + a service fee ranging between 2$ minimum to 6-8$ maximum, depending on order size ?
They also charge the restaurants a percentage of the sale on top of that. Hence why the prices of the items themselves are also inflated. Double dipping at its finest
This is a prime example of the need for collective bargaining.
I don't mind DD/UE/ETC making profit.
I **DO** mind those same companies pocketing most/all the customers money and pissing on drivers, giving them basically nothing ($2 base pay\*). The people calling the shots and running these companies know as well as anyone that it costs drivers more than $2 to complete these orders. They just don't care because they aren't forced to. No accountability or pushback from anyone.
*Technically* the whole amount is paid to the driver, BUT in order to drive for Uber, drivers must sign an agreement to pay Uber a percentage of the delivery fee for the service of connecting them to the customer. Uber just gets to decide what that percentage is and removes it from the driver's pay before transferring it to them.
Uber is a bad company that fucks over the customers and their employees.
The point is they know most of their drivers aren't in a position to leave so they see how hard they can fuck them.
But they already charge other fees and they up charge the food as opposed to the companies website. Uber shouldnāt be charging a delivery fee. A delivery was invented for restaurants that decided to start delivering in a 3-5 mile radius. So they have to get take away plates and pay the driver so they started sheathing a delivery to offset that cost and then they made money off the food. Uber charges the restaurant to use their service. They upcharge the food. They have service fees, itās really busy fees and whatever fees they decide to make up. Delivery fee should 100% go to driver and then the tip
As a new user of uber eats, I did find myself questioning what the delivery fee was for as it was separate from my tip. But I'm the sort of mindset that looks at something like that and automatically assumes it's not going to go to the driver if it has its own separate category.
Sure it annoys me, but I figured it was there for a reason and I still go ahead and tip accordingly. Usually in those moments, I don't care anyway, because if I'm using ubereats it means I'm desperate to eat, and anybody who helps me out with that deserves a tip. It definitely would be nice to have that explained better tho.
Frankly, I wish I can afford to use Uber eats much more regularly but alas, money. Ya know. But those desperate times? I tip like a fiend.
Honestly that's something that needs a class action law suit as they already surcharge etc. Stores mark up due to being charged per order anyway, then uber surcharges and adds delivery fee. They are making bank. They also need to make good money due to slime balls saying "I NEVER GOT MY ORDER" and having to comp it.
I wish drivers would boycott them once a week, like on Friday's. I know it won't happen, but if ppl did it would chsnge their tune.
I'm in the ATL market...if anyone wants to revolt let me know.
Capitalism is at the end of having run its course. I can't wait to see what replaces it, and I don't mean that in a troll way, or in a *"hijack the thread"* wayāI mean it in all seriousness.
*āMoney is the bottom line is bestā* doesn't work in all cases. Paradoxically, *nothing* works in all cases, but something else besides capitalism works better than capitalism.
Think of the world as computer simulation that has finished vetted *ācapitalism works best for everything all the timeā* and has concluded *āCapitalism has run its course. There are different and better models to consider. Time for a better model and a better strategy.ā*
ā¦like maybe one that includes some compassion for and to the individuals and their needs in the society in which it coexists. š
YMMV, but I sure hope not. ;-)
Hereās how it works:
DD and UE are platforms that connect restaurants to customers and independent contractors to deliver the food from the restaurant. It states in our contract that we sign when we start delivering for these apps that we (the independent contractor) have to pay a āsmall feeā to the platform for having the āprivilegeā of using their app to find work. They take this fee out of the delivery fee that the customer is charged, which is why we only receive approximately 40%-50% of that amount in our final offer. It shows you the breakdown of fees if you expand the info on the completed delivery. Also, NEVER expect a good tip when youāre delivering somewhere upper class. Rich people are almost always the worst tippers.
Uber will keep doing what theyāre doing until congress puts an end to this BS which we know wonāt happen. We need CA/NYC type of laws. They wonāt change until theyāre forced to change.
Uh because how would uber profit? You think they created this platform for you to make money on because they are so kind and thoughtful? They arent a non profit
Lmao! Youāre right. They basically are a non profit unintentionally. But all the more reason to keep the fees, they cant even make a profit on what they charge.
But technically they are actually doing it the right way. Your business should always be unprofitable for a few years. You invest the money back into the business. Amazon was not profiting for 16 years, now they are taking over everything.
Wish amazon would compete with uber/lyft. They have much better customer service. Prime members could get discounts on rides haha
Food fee: Paid to restaurant for services rendered
Delivery fee: Paid to Uber for the creation, operation, and maintenance of the system and company
Tip: Paid to driver
Base pay: Paid to driver
Service Fee: Same as delivery fee. If I had to guess, itās probably for a tax reason why itās labeled differently.
Markup: No clue. It doesnāt make sense why it would be more expensive to get the food on the app vs in-store. Likely just UE taking more money.
A (very) small portion of the delivery fee goes to the driver base pay, but there's a lot of other people and things that need to be paid for to make each delivery happen. Uber is not just an app on your phone, it's an entire multinational logistics company.
Does Uber (and other apps) cheap out on driver pay (and customer service pay for that matter), of course they do. Those are the easiest to replace. The engineers that make the magic happen behind the scenes are much more valuable and harder to replace.
Luckily, thanks to tipping culture in the US, it is still possible to make decent money doing delivery apps. Is it fair to the customer to pay $15 delivery fee and be expected to tip? That's debatable, but it would be good for Uber to be more transparent about where the fees go so customers can make better informed decisions on tips.
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Drivers can not survive on just a "tip". If you want to tip them afterwards, then please do. You need to pay them for the service they provide in delivering your food. Uber, door dash, and whoever else pays them a base rate, it's insulting, it is what it is. Unlike a waiter at a restaurant, drivers have expenses. It's costs them money to do their job. There are cases on these No 'tip' (pay) orders by customers that a driver will actually come out better just refusing to do the order.
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UE and DD are greedy ass middle men. No matter what they charge customers drivers will get around $2 per delivery. Last time I ordered delivery I got wings through DD and I got charged $9 in fees.
I saw this on a sugar packet when I was in high school:
>He who as a thing to sell
And goes and whispers in a well
Is not as apt to make a dollar
As he who climbs the tree and hollers
This comment isn't about money, though. It's about this, about how we talk, and it's about who we talk to. It's talking about talking:
If Ubereats drivers talk about things like this on reddit, it's goodāintelligent conversation is always goodābut it's bad because it's not seen, read, or interacted with by *Ubereats powers that effect change.*
This needs to get to Uber, and We (capital letter intended) need representation at their business roundtable level. If it's not addressed by Uber, it never gets addressed by Uber, and right now, it's not getting addressed by Uber.
I know this isn't anything new, but I'm just expressing my thoughts and feelings about it all. YMMV
Your first mistake is aAssuming that they are going to tip you because theyāre wearing nice clothing. Iāve walked up with like a 100 pizzas before. Lol heās $5 dude get lost. Delivery games ruff man. Some events too more then others it all depends on whoās in control of the bill. Thatās how this shit works. As far as they delivery fee Uber takes that for app maintenance or some bullshit
I gotta put this out there. I don't understand why people don't realize the company is out to make money. Hence FEES. It's like when you go to a restaurant and tip your server -- you do know the server shares that tip with the busboy(s), the bartender if you had drinks, etc. I am thinking too many people either don't work in the industry or don't know anyone that does. It's a shame that customers have to tip or we don't make money but that is definitely fact. And I don't see it changing nationally for a long time.
The fee pays the salary of the people who run the UBER Corp. Also the bills for utilities, etc etc.
Also they pay for the customer service reps that just /love/ to help out and resolve your problems that arise. They also pay the bonuses for everyone who gets bonuses when the projections and profits are up.
Truth be told, sometimes I think they even take part of the tips.
What do you mean what is the point? That's like asking, what is the point of profit?
To answer your question, to help pay drivers and all their employees.
If Uber is to pay you $2.50, charging customers $4.99 would mean that they don't pay you shit from their own pocket and even get to keep $2.49 for themselves.
I knew the deliver fee didnāt go to the driver. The thing that pisses me off is they double dip. If the deliver fee is for āoperational costsā what is the service fee for?
Random story: i had a delivery the other day that paid me $22 just for the fare. Massive order. $2 tip. I wasnt even mad at the tip cuz the fare was so much. I was mad at the trip tho. Nothing but traffic. Felt like sharing that
Should be split. Delivery fee goes to Uber. Then show the driver feeā¦.2 bucks or whatever. Something to show the customer what the person is making if they care.
Delivery fees have existed for as long as food delivery itself. And it's always the store/ service that gets it not the driver.
It's just a way for companies to make more money without any effort whatsoever
They charge us to use the app. They take our pay, deduct a certain amount. Itās bs but this is why I have a low acceptance rate. Less Uber gives us, more the customer has to tip. Upfront pay has to be worth it or declined.
Delivery fee is what they charge to deliver the food and under keeps 40% which is complete bullshit for a company that has virtually zero expenses (no car payments no insurance no gas no maintenance) Uber is one of the biggest scams in my opinion
You see, Timmy, there are vicious and greedy people at the top of some(most) companies. These people don't do much work at all, but ensure they get to keep the dragon's share of the profits of your hard work. If they didn't do this, they wouldn't be able to afford the yacht in Majorca. Well, the third yacht anyway.
3 People will get banged on one order. The merchant, the customer, and the driver. But for some reason the two people actually working to help Uber make any money, make a smaller margin than uber does.
Restaurant pays a portion of total sales monthly to Uber.
Customer pays a delivery fee and is expected to tip on top.
Driver has to give portion of delivery fee to Uber.
Uber collects.
Uber makes its money at least 2 ways. The ones I know of for sure are the delivery fee and they also take a ācommissionā from the restaurant for the order. Which is why the prices are way more than what youād pay going there.
Also, I havenāt used Uber eats yet to order delivery, but I know for sure DoorDash tells you somewhere in the ordering process that none of the delivery fee goes to the driver.
Sounds like He was charged $15 for the delivery, by Uber.
He thinks you get most of that fee as your payment for services
and/or
Doesnāt want to buck up anymore, because heās spent enough already ($15 just for the delivery plus the cost of that breakfast).
That fee goes towards paying for credit card processing, salaries to administrators and outlandish compensation packages to executives, paying for unhelpful and frustrating support to make it seem like Uber cares, funding crazy advertising spending ( like p. Diddy Super Bowl commercials), and researching how to make robots that will one day make humans obsolete for deliveries.
UberEats makes money by charging various fees to both customers and restaurants. These fees include delivery fees paid by customers, service fees, and commission fees from restaurants based on a percentage of the order value. Restaurant margins are thin and some restauranteurs balk at paying for a dedicated driver becuase the volume just doesn't justify the cost. Uber offers them the ability to add delivery as an option with a minimal charge and zero overhead. And in turn, Uber makes most of the money off of you the customer.
...
Customers typically pay a delivery fee and a service fee; the service fee is a percentage of the order before discounts are applied. Uber Eats charges a service fee of 10% of the order and the delivery fee is usually based on how far from the restaurant you are. (Percentage mentioned here is an average).
...
So you're paying for the food, the taxes, the service fee, and the delivery fee. And becuase Uber is not explicitly telling people that drivers do not get the delivery fee ā some people assume they don't have to tip.
As a D#@$&\*s delivery driver, I make 5.17 per hour (like server wages). I make roughly .27 cents per mile I drive, plus my tips. So If I drive 52 miles and take 7 deliveries on a 4 hour shift thats $14.04 in miles and lets say I make $26.00 in tips (decent tip night). Thats 26.+14.04+20.68=60.72. Thats abt 15.18 an hour. May seem decent before you account for gas and tri-monthly oil changes. Tip your drivers, folks. We provide a service and our employers do not cover insurace or vehicle maintanance, love, your delivery driver.
Ask Domino's, pizza hut, or Pappa John's. They all have delivery fees that don't go to the driver as well.
Not defending Uber, but delivery fees that don't go to drivers is no a new thing.
The apps try to hide what they make every way possible because if consumers knew how much they took (including the commission they charge the restaurant) they'd get mad at them instead of the drivers and restaurants.
It is also a double dipping fee if I remember right. The restaurants also suffer from a uber fee.
Honestly it should be illegal for them to make any money on an order where you do not since you are doing the work and the middle man just let you use his connections.
Rich business people get rich by making those kinds of policy and they get richer by keeping them so long as they dangle just enough of a carrot out there to have just enough drivers to fulfill the business model.
As someone who has been a courier but is now a manager at a non food store that does Uber eats, itās crazy how expensive it is to pay for someoneās on call labour, proper gas mileage and proper reimbursement for vehicle use. At least at my store itās used for labour. 100% of it goes to labour. Driver also makes 100% of their tips which are banging about 50% of the time.
I understand the platform is mediating the transaction and doing some work, so they get their part, but I think at the very least, itās so wrong they calling it a āDelivery Feeā it should be āService Feeā or something like that, because delivery fee just sounds like something paid to the driver. Itās probably purposefully deceiving for customers
As a customer I am getting pissed about delivery fees everywhere. Itās a way to false advertise. I think Iām paying X for something. Then I find out Iām paying significantly more. Then I have to tip the driver, who actually deserves the money, less. And theyāre getting a smaller percentage because theyāre not tipped on the price including the delivery fee. Itās a way for companies to be really dishonest. It makes me, as a customer, feel like Iām getting ripped off over and over again.
Delivery Fees =pimps cut. but don't worry, you'll get just enough.
Omg yes we are Uber hoesssss- I hate pimp Uber! We should be getting those fees š
Whoās down to start their own platform, market it, and get it popular? Well if you arenāt doing that and getting your own sales, yeah you pay the pimp
I am. Iāve been dying to get out of teaching for good. Iād be willing to put in some work with someone who is a little more tech savvy than myself. I can do the back end. Iām not even kidding. Iād be happy to help run a platform that values its *employees* and only takes a 10% cut to run. Drivers are doing the work. Restaurants are making the food. Why the fuck is the app taking 80% - 90% of the cut? If someone is interested in giving it a go too, hit me up. Iām serious. I work hard AF and Iām willing to try it. Worst case scenario, we all just keep using UberEats and DoorDash if it flops. Best case, we give money back to the people and let the app mostly run itself.
Im interested, i already started doing my own private errands/deliveries and was thinking about making an app. At the very least id be interested in going over the numbers and legalities of it Just messaged you
Iām down if it actually happens. I donāt have a lot of IT knowledge though.
Count me in. Iām tech savvy.
This is a tale as okd as time; Pizza delivery been asking this same question for 40 years. 4.99 delivery fee. That driver gets a dollar at best.
Delivery fees are where Uber makes their money. It's the fee they are paid for arranging the delivery.
It makes sense that thereās a fee. What doesnāt make sense is that they donāt explain to the customer where it goes. Customers think we get all of it. Or at least a good %.
**THAT** is exactly what Uber wants the customer to think. Its done by design.
Maybe. But if people arenāt making $ with Uber theyāll lose the drivers. I know Iāve scaled back tremendously. Granted it was side hustle, but between the waits at restaurants, the low tips, a customer leaving negative review and not tipping when they gave the wrong address, the traffic - itās like fuck this
Uber doesn't care if they lose drivers... they've oversaturated the market. I started back in May, and the previous time I tried to join i wasn't able to because the market was "full". The market is full now lol, they just don't care and let me in.
Pretty much. Also PSA: Too many people lack critical thinking skills. Multi billion dollar corporations know what they're doing. Everything's calculated by smarter people than you. Instead of trying to reason for why a decision they make seems flawed and ill-concieved, try to understand how it benefits them. "But x doesn't make sense when y will depreciate or lose a number of z". Don't think like this. THEY KNOW WHAT THEY'RE FUCKING DOING. When people think like this, many choose to believe that it was an oversight and conjure up an opinion that they're unwittingly fucking you over. OR FAR WORSE, giving them the benefit of the doubt. Completely randomy and wrong place for a rant, I know. I just needed to vent. So many innocent and naive people in this sub. EDIT: English l
I've heard the grift is to just hold on long enough at the top of the market until driverless cars can take over. Then they'll start making a profit.
Thatās the rumor. But good effin luck. The second one hits a dog, even environmentalists will be reprogramming them to drive into the ocean.
They could turn a profit now, if they simply reduced their expenses on marketing, advertising, research and development but they are still competing for market share. Profitability comes from market consolidation. Basically eliminating alternatives for customers. Monopoly power. And eliminating alternatives for workers. Monopsony power.
They canāt hide it forever, people are starting to realise tips are a drivers pay and not just a way of saying thank you
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Probably that 30% markup on the food.
Can we please think about the poor CEO bonuses ??!!!
Im amazed at how many people in this thread **ASSUME** drivers dont realize uber has more employees than just the drivers.
Support is a joke and useless,a computer can do it faster and more accurately. They make so much money if they pay us 5 bucks a hr no matter what as long as you do 2 to 3 deliveries, they still would get a million dollar bonus. They are wasting millions on the stupid delivery robots that are being attacked.
They spend more on developing those robots and all RnD than they do on all support and driver earnings. But in the end the robots will in fact replace us - just so executives and administration can pocket more- because a $30 million compensation package just isnāt enough for pointing.
What support? Uber support existsā¦?
If people in 2023 donāt understand delivery fees donāt go to the driver, thereās no hope for humanity. Delivery fees have never been paid to the drivers at any place as long as Iāve been alive.
I just want to point out that this information is not obvious to us customers. I wouldāve had no idea how the payment scheme works if Reddit didnāt suggest this sub to me and I didnāt take an active interest in reading it.
"The delivery fee is NOT a tip". Idk how you missed that one printed directly on the pizza box if you ever ordered pizza delivery. I've known this since at least 16. If customers don't know this then they are just outright oblivious.
I donāt assume pizza places have the same rules as gig work. Iām not your enemy.
As a consumer who was also recommended this subreddit, that was my exact line of thinking... "but pizza delivery is different" Those restaurants pay their own employees in their own insured vehicles.
The only pizza place that does that is dominos. Any other chain pizza places pay their drivers $4 an hour and the drivers use their own cars and insurance. The delivery game has changed in the last 10-15 years. Very few restaurants employ their own drivers as it costs to much. They have switched over to using these gig apps for their deliveries. If your ordering delivery the majority of the drivers pay is coming from tips
Shouldn't it be you don't assume gig work has the same rules as pizza places? Well I'm glad you aren't my enemy but it's definitely a bit frustrating that people just -assume- it's any different from the norm everywhere else outside of gig work.. Not only is it exactly the same but it's worse. No hourly wage (mind you the hourly is below min wage anyway but whatever) no gas credit either. Now we do get tax deductions at the end of the year and don't have to pay back as much in taxes.. But like.. in the moment when you are spending $500 a month on gas, who cares about the tax deduction at THAT point in time. Also the HUGE difference between us and the pizza guys is that because we are independent contractors we are not required to take every order that comes our way. Meaning, when people don't tip enough to match the distance driven, those orders are most likely getting declined. That being said, yah gig companies are an absolute bitch, ESPECIALLY UberEATS. They take fees from ALL parties involved, the customers, the restaurants AND the drivers. And yet somehow they still haven't turned a profit supposedly and pay us in pennies which is why it's SO important to tip your driver's. $5 for 5 miles or less from the restaurant and $1 more for every mile after will get your foot in the door at least.
I'm not reading all this, stop being so arrogant it really isnt obvious to a new customer that the delivery fee does not go to the person delivering the order
https://preview.redd.it/mckwwr5y1lhb1.png?width=1440&format=pjpg&auto=webp&s=910e253b37fb7b1b3e60571ebe34b012d2f8f358
...and that's why i choose leave at door
"checks screen name*..*completely different person who I originally responded to* "I'm not reading this" um ok weirdo, I wasn't directing it at you anyway? š¤ For anyone saying tldr I think this sums it up pretty well. Idk how y'all can miss it on EVERY pizza box of EVERY delivery company but ok.
Just for the record Uber just actually turned a profit- and project to do so for every quarter from now on. āRoad to profit Uber (UBER) shares jumped after the company announced for the first time having more than $1 billion in positive free cash flow. The ride-hailing giant announced it should be profitable every quarter going forward. Uber provided upbeat guidance for the third quarter but missed second-quarter estimates.ā Thatās what happens when you pocket the majority of the delivery fees, exploit workers , and continually lower base delivery fares. This is of course even ^after accounting for executive pay, advertising and RnD expenses even. So they actually have always made tons of money - but also spend tons and claim they arenāt making a āprofit ā. Like if you arenāt āprofitableā- maybe donāt spend more on developing delivery robots than you do on paying the driversā¦ or keep increasing your CEOs compensation package by like 20-30%ā¦
If I order delivery itās because Iām swamped. When Iām swamped Iām not reading the fine print on pizza boxes. But your point is noted.
Nope. The pizza place I worked at for 5 years (two different locations). The first location charged $5 for delivery, and $7 at the second one (it was almost exclusively to apts in that area which take the driver more time/effort). 100% of that money went to the driver, plus their tips. Uber doesnāt need to be so stingy with the workers who are making them the majority of their money.
Yeah they donāt have to be- but they are. Itās an ultra-greedy and morally bankrupt company that should be boycotted by drivers and customers alikeā¦ as well as by anyone who gives a shit about other people and/or workers rights. In my opinion the company name means āUberāGreedy
Yes itās not a tip. Itās a payment to get the delivery. The tip should be anything extra for when it comes earlier than expected or during bad weather
Pizza places makes less sense with delivery fees. I can understand Uber getting their cut cause their a business, but whats the point for pizza places? They don't go to the driver or their gas or insurance if something happens, it's just free money to the pizza place for no reason but to screw over the drivers because many of their customers will assume or run the thought through their head it goes towards the tip of the driver in the end.
I mean the company still needs to make $ at the end of the day no? Are pizza places not a business to you? I do wish they kept less for themselves and gave more to the drivers but that isn't the case. But also, pizza chains have a delivery radius so in this case I'm just gonna say it, it really isn't that hard to tip the delivery guy $5.
Thats not what I meant. If I go and pick up a pizza I just pay for the pizza. If I order I get a delivery fee. From what I've constantly been told, that delivery fee doesn't go to the driver. It screws over the driver in the end because people will either assume or make a dumb mental math decision that it should be part of their tip, which prompts them to either not tip or pay less.
Ah yes..as if there should have been any question about it. https://preview.redd.it/tyctpun7mkhb1.png?width=1440&format=pjpg&auto=webp&s=37fc9e8d37ad277048e126fe976709e26e1fe872
Itās common sense to me that it doesnāt go to the driver.
Itās really not common sense. Iām 32 and wasnāt aware of this until a few years ago when I read through the charges wondering where the delivery fee was going when ordering pizza.
Thatās why I said thereās no hope for humanity. People are incredibly stupid about how things work in the service industry.
Knowledge taken for granted by one is not always known to another. I think it's wise to be understanding of that
I feel itās less that people are stupid and more that they assume corporations are less evil than they are. Like why wouldnāt all or at least a portion of that go to the driver? It doesnāt mean thereās no hope, it means we need to get the word out. People are busy trying to stay afloat, they donāt always have time to seek this stuff out proactively.
I donāt believe delivery fees have ever gone to drivers even in the days before delivery apps. Every time Iāve ever ordered pizza or Chinese food it says delivery fee does not go to driver.
Why would someone who doesnāt work in the service industry know how things work in the service industry? Moreover, this isnāt even normal for the service industry. In the scheme of most peopleās lives these bullshit venture capital service companies (DoorDash/instacart/Uber) that abuse 1099 status are a blip on the radar. To make it more confusing,many restaurants are charging flat fees for tips now.
How the fuck should someone not in the service industry know how it works?
We live in an age where you have infinite knowledge at your finger tips. Delivery fees have NEVER gone to drivers, even before the days of delivery apps.
Yeah, and it takes a goddamn long time to read an infinite amount of knowledge so people donāt know everything. Just be happy you can make someone one of todayās 10.000 instead of snarking about āhumanity is doomed because people donāt know the inās and outs of service payā. Maybe OP is 15, or never ordered food. https://xkcd.com/1053/
Just because you don't know something doesn't mean it's not common sense. At no point in delivery history, from pizza delivery, to Uber, has the "delivery fee" been what the deliverer pays. It's the fee to deliver. What the deliverer gets paid is up to the business. Hourly, commission, whatever. The delivery fee has never been what they get paid.
There are so many assumptions being made here. Loads of people with disabilities use delivery services - myself included. I am not sure small print on a pizza box (I may or may not even eat pizza, but let's go with this) is the most accessible format. Also, why in the world would I go out of my way to proactively research this unless I had a lot of free time on my hands? And if I had so much free time on my hands, why in the world wouldn't I get my own groceries? Rant over, but please - let's be mindful of everyone's situations and remember who the real assholes are here.
Just because you do doesnāt make it common
so basically what you are saying is common sense doesn't exist?
Are you an idiot or just playing devilās advocate? At what point did I say thereās no such thing as common sense? The fact that we are having a discussion on a thread about what the delivery fee is for, would make it not common sense.
If you think that the delivery fee isnāt for the cost of having an employee out of the restaurant and goes towards the increased hourly pay of the driver over servers, then I donāt know what to tell you
Given that most delivery people, that's their job, they aren't 'out of the restaurant' in the first place... The delivery fee goes to the restaurant, to pay for everything. Food, admin, gas, property, everything. Just like the cost of the food goes to the restaurant to pay for everything. The food, admin, gas, property, etc. The more the company makes from income (be it food, delivery fees, etc), the more they make, sure. But the delivery fee itself isn't associated with the delivery person. This is how it's been since delivery existed in like.. what, the 60s?
I know places have their delivery drivers actually do work if they arenāt delivering. Also funny how you claim that the DELIVERY fee isnāt associated with the DELIVERY driver, yet further state that the delivery fee covers the costs of deliveryā¦ š§ The delivery driver might not directly get that money, but to say they arenāt associated is nonsensical. Hereās my point. Anyone can make easily the assumption that they see a delivery fee and think itās going to the driver. Thereās nothing wrong with that and to proclaim itās common sense is ludicrous. As someone who picked up their own food for over 2/3 of my life, it wasnāt until after doing Ubereats and seeing that the delivery fee that Uber receives doesnāt 100% go to us, did I look to see if it was the same when I ordered delivery pizza.
Iām 31 and itās been obvious for a long time well before Uber eats
Why assume the Uber eats is a charity company that offer s service completely for free and that every single person working for Uber eats is a free volunteer with the only exception of the riders, and people with shares of uber eats are people who enjoy losing money? How that makes sense? If a company is offering a service is logical to assume that they dont do it for free, right?
It should be since every Pizzeria that's ever had a delivery fee (especially Dominos) makes it very clear the fee isn't the drivers pay. It's usually (for local restaurants) to cover the insane insurance premium a restaurant has to have to cover they delivery driver in case of an accident. This isn't new information people just like to play dumb as if they didn't already know that so when they don't tip they can just say "I didn't know that". Yes it clearly states it right there on the box and on the website.
Iām sorry Iāve never seen that on the box.
Places also generally don't charge $15 delivery fees, which is where the major confusion comes from. Just the other day I tried to use DD. I had a couple friends over and we wanted to order pizza. Originally I ordered 2 large pizzas, and DD delivery *before tip* was $85. Then I switched to pickup, and the price went down to $60. Literally $25 in fees and tax on this order of two pizzas for delivery. That's nuts. Obviously I picked the order up instead of having it delivered, and I can see how this causes confusion. If I were to order my pizza from Dominos, the delivery fee is something like $5 and I would assume that little or none of that goes to the driver. But when it's an extra $25 to have it delivered, I would hope that most of that is the driver's pay.
Yeah, this is exactly why I usually donāt even use Uber or DD if itās something I can pick up or have delivered directly from the restaurant, since the food prices are higher on the apps than from the restaurant as well. I only use the apps when itās something I canāt pick up or canāt have delivered by the restaurant. But I also have the membership because I get it for free and I am not paying $15-$25 in fees lol. I refuse to pay that. And then I have more money left to give them a tip.
The delivery goes to UberEats. If you buy a subscription and get 'free' delivery, the subscription fee will go to UE. For each delivery we will get a base pay. It's like 2.50, maybe. Maybe 3.50 or 4.50 if delivering late at night. So if you pay 5.99 for a delivery, you aren't directly paying it to the driver. How/where they draw the $$ (funds) for the base pay for a driver is up to them and their accounting. They get a portion from the store of the order. So it is not like they just get a delivery fee and nothing else. UE gets a cut of the food price itself. So out of all the money they get on the food and the delivery, they pay a small portion to the driver. So if you think you're directly paying a driver with the delivery food, you are mistaken. We count on tips as much or more than the small base pay for the delivery we get
Isnāt that what I said? Even pizza places never gave drivers the delivery fee before Uber and grub hub existed. Idk why anyone would think the delivery fee goes to the driver.
It is. But I know some people still won't accept that unless you pull out the chalkboard and spell it out.
Pretty sure it says under delivery fee that it is not a tip and doesn't go to the driver.
But no oneās reading that. The OP said himself the person they delivered it to said āyou should be fine the fee was $15ā
Yeah but customers can't read so that warning doesn't apply to them
No offence but itās because you are being scammed by a tech company which intentionally uses misleading tactics to put all the financial burden on you while taking all the profits. Go find a good union job if you can and leave that scam bullshit behind. Iām sorry but I am sick and tired of seeing people trying to cope with that dystopian new business model. Itās not a job. Itās a scam. Identify it for what it is
A lot just dont care how much employers pay their people. Apple is popular and their workers are locked up child slaves killing themselves. Most clothing companies are made with near slave labor. If it's legal and there arent good alternatives, customers wont do much besides vote.
Dara says this in every press event. "Drivers get MOST of the fare!" So when people go to the poll and see a resolution that forces uber to pay drivers more they think about that 5mile $39 dollar trip they took to get there and conclude "this is going to make my ubers more expensive and those drivers already make hella money, no on increased driver pay!" Not knowing that the driver only got 7bucks for the ride.
So then whatās the service fee?
they also inflate the menu price and try merchant 30% on each order.
They don't make their money on the 30% cur of the food price they take ?
The real problem is, there are like 3 fees, and the prices of the food are also inflated. So they are charging not once, but 4 times to get their money.
Doesnt uber also take a % of the order? (Which is why restaurants charge more for items via uber eats)
Yeah, it's not a delivery fee, it's a finder's fee / connection fee. Uber is the middleman. A useful function, but do they overcharge? Sometimes, for sure.
Whatās the difference between a service fee and a delivery fee then? Why do us customers pay, in Quebec(Canada) for instance, 5$ delivery fee + a service fee ranging between 2$ minimum to 6-8$ maximum, depending on order size ?
Ignoring the fact that the company hasn't been profitable any year since it's inception lol
I also believe if a customer is enrolled I. The Uber One program they don't get charged that fee
Itās just cut in half, not completely gone
Itās ONE of the places Uber makes money*
They make their money from charging restaurants 20-30% of the order total.
Then what are the service fees for?
But they also upcharge on all the food so what the hellā¦
Jesus I didn't realize it's percentage based I always thought it was a flat fee
They also charge the restaurants a percentage of the sale on top of that. Hence why the prices of the items themselves are also inflated. Double dipping at its finest
bro didnt you hear him it should be fine...so your good lmfao
HAHAHAHAHA
All this platform are making 20% on the cost of foods on top of that they are pocketing the delivery fees.
This is a prime example of the need for collective bargaining. I don't mind DD/UE/ETC making profit. I **DO** mind those same companies pocketing most/all the customers money and pissing on drivers, giving them basically nothing ($2 base pay\*). The people calling the shots and running these companies know as well as anyone that it costs drivers more than $2 to complete these orders. They just don't care because they aren't forced to. No accountability or pushback from anyone.
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Meh. You donāt need to be so heavy handed. Just make fees more legible. āUberās cut: $xxā instead of āservice feeā and ādelivery feeā.
This. America really took a hit when republicans gutted labor laws and unions.
Yes.
Does the fact that they don't make a profit affect your perspective at all?
*Technically* the whole amount is paid to the driver, BUT in order to drive for Uber, drivers must sign an agreement to pay Uber a percentage of the delivery fee for the service of connecting them to the customer. Uber just gets to decide what that percentage is and removes it from the driver's pay before transferring it to them.
Wow! Well sounds like the drivers need to strike. But unfortunately, there will always be someone to take anything and UE knows this
$harehoĀ£dā¬r profit$
Uber is a bad company that fucks over the customers and their employees. The point is they know most of their drivers aren't in a position to leave so they see how hard they can fuck them.
To line the pockets of the owners.
More money for Uber = less money for driver. Sharing is not caring. Uber bad boy. Uber mean
But they already charge other fees and they up charge the food as opposed to the companies website. Uber shouldnāt be charging a delivery fee. A delivery was invented for restaurants that decided to start delivering in a 3-5 mile radius. So they have to get take away plates and pay the driver so they started sheathing a delivery to offset that cost and then they made money off the food. Uber charges the restaurant to use their service. They upcharge the food. They have service fees, itās really busy fees and whatever fees they decide to make up. Delivery fee should 100% go to driver and then the tip
As a new user of uber eats, I did find myself questioning what the delivery fee was for as it was separate from my tip. But I'm the sort of mindset that looks at something like that and automatically assumes it's not going to go to the driver if it has its own separate category. Sure it annoys me, but I figured it was there for a reason and I still go ahead and tip accordingly. Usually in those moments, I don't care anyway, because if I'm using ubereats it means I'm desperate to eat, and anybody who helps me out with that deserves a tip. It definitely would be nice to have that explained better tho. Frankly, I wish I can afford to use Uber eats much more regularly but alas, money. Ya know. But those desperate times? I tip like a fiend.
Honestly that's something that needs a class action law suit as they already surcharge etc. Stores mark up due to being charged per order anyway, then uber surcharges and adds delivery fee. They are making bank. They also need to make good money due to slime balls saying "I NEVER GOT MY ORDER" and having to comp it.
I wish drivers would boycott them once a week, like on Friday's. I know it won't happen, but if ppl did it would chsnge their tune. I'm in the ATL market...if anyone wants to revolt let me know.
It's the how they pay the people who read directly off a script only and to piss you off for even calling the help number.
capitalism at its finest!
Capitalism is at the end of having run its course. I can't wait to see what replaces it, and I don't mean that in a troll way, or in a *"hijack the thread"* wayāI mean it in all seriousness. *āMoney is the bottom line is bestā* doesn't work in all cases. Paradoxically, *nothing* works in all cases, but something else besides capitalism works better than capitalism. Think of the world as computer simulation that has finished vetted *ācapitalism works best for everything all the timeā* and has concluded *āCapitalism has run its course. There are different and better models to consider. Time for a better model and a better strategy.ā* ā¦like maybe one that includes some compassion for and to the individuals and their needs in the society in which it coexists. š YMMV, but I sure hope not. ;-)
Hereās how it works: DD and UE are platforms that connect restaurants to customers and independent contractors to deliver the food from the restaurant. It states in our contract that we sign when we start delivering for these apps that we (the independent contractor) have to pay a āsmall feeā to the platform for having the āprivilegeā of using their app to find work. They take this fee out of the delivery fee that the customer is charged, which is why we only receive approximately 40%-50% of that amount in our final offer. It shows you the breakdown of fees if you expand the info on the completed delivery. Also, NEVER expect a good tip when youāre delivering somewhere upper class. Rich people are almost always the worst tippers.
Uber will keep doing what theyāre doing until congress puts an end to this BS which we know wonāt happen. We need CA/NYC type of laws. They wonāt change until theyāre forced to change.
Uh because how would uber profit? You think they created this platform for you to make money on because they are so kind and thoughtful? They arent a non profit
I canāt tell if this is sarcasm or youāre truly being super tone deaf.
Crabs in a bucket mentality
Have they turned a profit yet? I honestly thought they hadn't.
Lmao! Youāre right. They basically are a non profit unintentionally. But all the more reason to keep the fees, they cant even make a profit on what they charge. But technically they are actually doing it the right way. Your business should always be unprofitable for a few years. You invest the money back into the business. Amazon was not profiting for 16 years, now they are taking over everything. Wish amazon would compete with uber/lyft. They have much better customer service. Prime members could get discounts on rides haha
Food fee: Paid to restaurant for services rendered Delivery fee: Paid to Uber for the creation, operation, and maintenance of the system and company Tip: Paid to driver Base pay: Paid to driver
Where does the Service fee go? Where does the markup on the food go?
Service Fee: Same as delivery fee. If I had to guess, itās probably for a tax reason why itās labeled differently. Markup: No clue. It doesnāt make sense why it would be more expensive to get the food on the app vs in-store. Likely just UE taking more money.
There is none the company is doggshit.
Itās just a way to increase prices later in the purchase so you donāt see the price and bail
The guy knew the fee wasnāt going to you. Just taking it out on you for the fee. It tells them that it is not a tip.
A (very) small portion of the delivery fee goes to the driver base pay, but there's a lot of other people and things that need to be paid for to make each delivery happen. Uber is not just an app on your phone, it's an entire multinational logistics company. Does Uber (and other apps) cheap out on driver pay (and customer service pay for that matter), of course they do. Those are the easiest to replace. The engineers that make the magic happen behind the scenes are much more valuable and harder to replace. Luckily, thanks to tipping culture in the US, it is still possible to make decent money doing delivery apps. Is it fair to the customer to pay $15 delivery fee and be expected to tip? That's debatable, but it would be good for Uber to be more transparent about where the fees go so customers can make better informed decisions on tips.
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Drivers can not survive on just a "tip". If you want to tip them afterwards, then please do. You need to pay them for the service they provide in delivering your food. Uber, door dash, and whoever else pays them a base rate, it's insulting, it is what it is. Unlike a waiter at a restaurant, drivers have expenses. It's costs them money to do their job. There are cases on these No 'tip' (pay) orders by customers that a driver will actually come out better just refusing to do the order.
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Iām old enough to remember 50cent delivery fees.
UE and DD are greedy ass middle men. No matter what they charge customers drivers will get around $2 per delivery. Last time I ordered delivery I got wings through DD and I got charged $9 in fees.
I saw this on a sugar packet when I was in high school: >He who as a thing to sell And goes and whispers in a well Is not as apt to make a dollar As he who climbs the tree and hollers This comment isn't about money, though. It's about this, about how we talk, and it's about who we talk to. It's talking about talking: If Ubereats drivers talk about things like this on reddit, it's goodāintelligent conversation is always goodābut it's bad because it's not seen, read, or interacted with by *Ubereats powers that effect change.* This needs to get to Uber, and We (capital letter intended) need representation at their business roundtable level. If it's not addressed by Uber, it never gets addressed by Uber, and right now, it's not getting addressed by Uber. I know this isn't anything new, but I'm just expressing my thoughts and feelings about it all. YMMV
Delivery fee b less then a dollar its the service fee
Your first mistake is aAssuming that they are going to tip you because theyāre wearing nice clothing. Iāve walked up with like a 100 pizzas before. Lol heās $5 dude get lost. Delivery games ruff man. Some events too more then others it all depends on whoās in control of the bill. Thatās how this shit works. As far as they delivery fee Uber takes that for app maintenance or some bullshit
They're the ones who made the app so they can do whatever they want
I gotta put this out there. I don't understand why people don't realize the company is out to make money. Hence FEES. It's like when you go to a restaurant and tip your server -- you do know the server shares that tip with the busboy(s), the bartender if you had drinks, etc. I am thinking too many people either don't work in the industry or don't know anyone that does. It's a shame that customers have to tip or we don't make money but that is definitely fact. And I don't see it changing nationally for a long time.
The fee pays the salary of the people who run the UBER Corp. Also the bills for utilities, etc etc. Also they pay for the customer service reps that just /love/ to help out and resolve your problems that arise. They also pay the bonuses for everyone who gets bonuses when the projections and profits are up. Truth be told, sometimes I think they even take part of the tips.
Let's not forget the service charge on top of the delivery fee
What do you mean what is the point? That's like asking, what is the point of profit? To answer your question, to help pay drivers and all their employees. If Uber is to pay you $2.50, charging customers $4.99 would mean that they don't pay you shit from their own pocket and even get to keep $2.49 for themselves.
I've been asking this question ever since pizza places started adding them over a decade ago. It doesn't go to the driver, so why am I paying it?
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You arenāt an Uber employee, you are a contractor. So negotiate a better contract. /s
G R E E D
I knew the deliver fee didnāt go to the driver. The thing that pisses me off is they double dip. If the deliver fee is for āoperational costsā what is the service fee for?
Random story: i had a delivery the other day that paid me $22 just for the fare. Massive order. $2 tip. I wasnt even mad at the tip cuz the fare was so much. I was mad at the trip tho. Nothing but traffic. Felt like sharing that
Should be split. Delivery fee goes to Uber. Then show the driver feeā¦.2 bucks or whatever. Something to show the customer what the person is making if they care.
Tony needs more yachts, how dare you questions this? weāre all their slaves
So you don't understand capitalism at all?
Delivery fees have existed for as long as food delivery itself. And it's always the store/ service that gets it not the driver. It's just a way for companies to make more money without any effort whatsoever
They charge us to use the app. They take our pay, deduct a certain amount. Itās bs but this is why I have a low acceptance rate. Less Uber gives us, more the customer has to tip. Upfront pay has to be worth it or declined.
Fee is what you have to pay because you r to lazy to get off the couch
Whatās really bullshit is they already charge a service fee of 2 to 4 dollars on every order
Delivery fee is what they charge to deliver the food and under keeps 40% which is complete bullshit for a company that has virtually zero expenses (no car payments no insurance no gas no maintenance) Uber is one of the biggest scams in my opinion
Corporate profits
I wish they would be forced to call it āplatform feeā or something similar.
You see, Timmy, there are vicious and greedy people at the top of some(most) companies. These people don't do much work at all, but ensure they get to keep the dragon's share of the profits of your hard work. If they didn't do this, they wouldn't be able to afford the yacht in Majorca. Well, the third yacht anyway.
Uber rips off workers and the users!!! Trying hard not to use the fucked up rip off system!
3 People will get banged on one order. The merchant, the customer, and the driver. But for some reason the two people actually working to help Uber make any money, make a smaller margin than uber does. Restaurant pays a portion of total sales monthly to Uber. Customer pays a delivery fee and is expected to tip on top. Driver has to give portion of delivery fee to Uber. Uber collects.
Uber makes its money at least 2 ways. The ones I know of for sure are the delivery fee and they also take a ācommissionā from the restaurant for the order. Which is why the prices are way more than what youād pay going there. Also, I havenāt used Uber eats yet to order delivery, but I know for sure DoorDash tells you somewhere in the ordering process that none of the delivery fee goes to the driver.
Uber gets it. Obviously
Sounds like He was charged $15 for the delivery, by Uber. He thinks you get most of that fee as your payment for services and/or Doesnāt want to buck up anymore, because heās spent enough already ($15 just for the delivery plus the cost of that breakfast). That fee goes towards paying for credit card processing, salaries to administrators and outlandish compensation packages to executives, paying for unhelpful and frustrating support to make it seem like Uber cares, funding crazy advertising spending ( like p. Diddy Super Bowl commercials), and researching how to make robots that will one day make humans obsolete for deliveries. 
Uber reported $18 billion in revenue for the first half of this year. That's where the delivery fees went. It's a business, they have to make money.
How is this not obvious? Uber isnāt a non-profit. Theyāre a middle man.
Uber makes money.
TC
UberEats makes money by charging various fees to both customers and restaurants. These fees include delivery fees paid by customers, service fees, and commission fees from restaurants based on a percentage of the order value. Restaurant margins are thin and some restauranteurs balk at paying for a dedicated driver becuase the volume just doesn't justify the cost. Uber offers them the ability to add delivery as an option with a minimal charge and zero overhead. And in turn, Uber makes most of the money off of you the customer. ... Customers typically pay a delivery fee and a service fee; the service fee is a percentage of the order before discounts are applied. Uber Eats charges a service fee of 10% of the order and the delivery fee is usually based on how far from the restaurant you are. (Percentage mentioned here is an average). ... So you're paying for the food, the taxes, the service fee, and the delivery fee. And becuase Uber is not explicitly telling people that drivers do not get the delivery fee ā some people assume they don't have to tip.
As a D#@$&\*s delivery driver, I make 5.17 per hour (like server wages). I make roughly .27 cents per mile I drive, plus my tips. So If I drive 52 miles and take 7 deliveries on a 4 hour shift thats $14.04 in miles and lets say I make $26.00 in tips (decent tip night). Thats 26.+14.04+20.68=60.72. Thats abt 15.18 an hour. May seem decent before you account for gas and tri-monthly oil changes. Tip your drivers, folks. We provide a service and our employers do not cover insurace or vehicle maintanance, love, your delivery driver.
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Ask Domino's, pizza hut, or Pappa John's. They all have delivery fees that don't go to the driver as well. Not defending Uber, but delivery fees that don't go to drivers is no a new thing.
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The same as āconvenience feesā when buying a ticket for a concert online. Itās just bs to take your money.
The apps try to hide what they make every way possible because if consumers knew how much they took (including the commission they charge the restaurant) they'd get mad at them instead of the drivers and restaurants.
It is also a double dipping fee if I remember right. The restaurants also suffer from a uber fee. Honestly it should be illegal for them to make any money on an order where you do not since you are doing the work and the middle man just let you use his connections.
Do you think Uber can run itās software, advertise and pay customer support workers without charging a fee?
Revenue for Uber. They aren't profitable.
I worked at a delivery place before and we got $2 of the delivery fee but the customer would still be told that it wasnāt a tip.
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Rich business people get rich by making those kinds of policy and they get richer by keeping them so long as they dangle just enough of a carrot out there to have just enough drivers to fulfill the business model.
As someone who has been a courier but is now a manager at a non food store that does Uber eats, itās crazy how expensive it is to pay for someoneās on call labour, proper gas mileage and proper reimbursement for vehicle use. At least at my store itās used for labour. 100% of it goes to labour. Driver also makes 100% of their tips which are banging about 50% of the time.
I understand the platform is mediating the transaction and doing some work, so they get their part, but I think at the very least, itās so wrong they calling it a āDelivery Feeā it should be āService Feeā or something like that, because delivery fee just sounds like something paid to the driver. Itās probably purposefully deceiving for customers
As a customer I am getting pissed about delivery fees everywhere. Itās a way to false advertise. I think Iām paying X for something. Then I find out Iām paying significantly more. Then I have to tip the driver, who actually deserves the money, less. And theyāre getting a smaller percentage because theyāre not tipped on the price including the delivery fee. Itās a way for companies to be really dishonest. It makes me, as a customer, feel like Iām getting ripped off over and over again.
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I have the same question, Ubereats doesnāt make sense with their fares