• Uber Eats, the second-largest online food delivery (OFD) provider in the US, and its subsidiary Postmates (which operates as a separate service) have launched a new three-tiered pricing structure for their restaurant partners. Restaurants can now choose from plans priced at 15%, 25%, and 30% commissions on delivery orders (6% for pickup orders), with varying levels of app visibility and advertising/promotional support.   

• Under the Uber Eats 15% “Lite” plan, restaurants must pay for their own ads/promotions and will only appear on the platform if a customer specifically searches for them. Consumers also bear a higher delivery fee and won’t have access to Uber Pass benefits (zero delivery fees on eligible orders and a 5% discount on orders above USD 15). Meanwhile, the 25% “Plus” and 30% “Premium” plans offer Uber Pass benefits and reduced delivery fees as well as better app visibility.

<ul><li>The new pricing structure mirrors the move by US market leader DoorDash in April 2021, when the company launched its three-tiered pricing structure. Grubhub, the third-largest US player, also offers tiered pricing.</ul> 

<ul><li>OFD players faced criticism over their high commission fees (previously 30% on average), particularly during the pandemic when restaurants were dependent on their delivery services. Several states and cities imposed commission caps during this time, with San Francisco and New York City (NYC) deciding to enact permanent 15% caps. The new pricing structures are likely aimed at halting further permanent commission caps across the US. Uber Eats, DoorDash, and Grubhub recently filed a lawsuit against NYC to prevent the city from enforcing its permanent fee cap. DoorDash and Grubhub also filed a lawsuit against San Francisco in July 2021 in response to its permanent 15% commission cap.</ul>