Why menu pricing matters for success on Uber Eats

Why menu pricing matters for success on Uber Eats

When consumers are ordering online, they often compare a restaurant’s prices for dine-in and delivery. In fact, in the United States, 43% of online food delivery consumers have said they regularly check for price differences between a restaurant’s dine-in and delivery menus before placing an order.*

Price-sensitive consumers seek the best value and are more likely to complete their orders when online menu price markups remain reasonable. What’s reasonable? On average, surveyed users of third-party food delivery apps in the US said that if restaurants had to mark up their prices, 12% would be reasonable. When menu prices exceed their expectations, however, only 22% said they’d still follow through with their order.*

Online food delivery customers have more options than ever. So how restaurant owners and operators price items on their Uber Eats menu is critical for attracting and retaining them. Below are some tips and examples to help show how pricing and other economic factors can affect a restaurant’s bottom line on Uber Eats.

How pricing on Uber Eats works

Partnering with Uber Eats opens up more than just a way to receive and deliver orders; it’s a powerful tool that can help grow your business. The platform can help you increase your brand’s visibility and reach new customers. It may also drive additional order volume that might not have occurred otherwise. In fact, being on the Uber Eats platform means gaining access to customers you may not otherwise be serving, whether during slower hours, from new neighborhoods, or by appealing to people who prefer the convenience of delivery.

Uber Eats also takes care of key operational needs, including credit card processing fees, order support, and valuable business insights through performance analytics. These analytics allow you to spot and track trends, fine-tune your menu offerings, and make informed pricing decisions that align with your goals. To support these features and services, Uber Eats charges a Marketplace Fee, which is agreed upon when you join the platform based on the marketplace plan you choose. Many restaurants find that delivery orders are incremental and often come with lower overhead than dine-in, since they don't require table service or as much on-premises staff. With increased order volume, customer growth, and operational efficiencies that delivery enables, restaurants may find that they can remain profitable even while reducing menu prices.