Uber Eats cuts fees to compete with Just Eat and Deliveroo

Uber Eats slashes fees to challenge UK food delivery businesses.

Uber Eats delivery driver after Uber Eats cuts fees Source: Bloomberg

Uber Eats is growing in the UK food delivery market and is cutting prices to establish dominance in the food takeaway business. The US company is cutting its fees to challenge UK mainstays Just Eat and Deliveroo. Shares of Just Eat fell 5% after the news.

How much will Uber Eats cut its fees?

Uber Eats, which is owned by the ridehailing app, will slash the cap on fees it charges restaurants from 35% to 30%. The marketplace service will be 13%, less than Just Eat's 14%.

Why did Uber open its app to 50,000 UK restaurants?

In addition to cutting restaurant fees, Uber Eats is opening its technology to dining establishments as well, putting it in direct competition with Just Eat. Uber will open its app to restaurants that use their own delivery drivers. Previously, it was only open to small businesses that didn’t have delivery drivers. Toussaint Wattinne, general manager of Uber Eats UK & Ireland, explained why the corporation made the change.

‘We want to help as many restaurants as possible open their virtual doors and unlock the value of their business with food delivery. That’s why we’re opening our technology up for all restaurants who want to grow their business with Uber Eats. Whether that’s helping a family run fish and chip shop make their first delivery or supporting a household favourite serve more customers. We strongly believe this will help restaurants big and small thrive long in to the future, while vastly enhancing selection for users,’ said Wattinne.

Uber Eats’ move into the UK food delivery business will mean that Just Eat and Deliveroo will have to work hard to match the company’s latest deals. Uber Eats’ latest actions may make the company just as successful in the UK as it is in the US.

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