Uber Eats cuts fees to compete with Just Eat and Deliveroo
Uber Eats slashes fees to challenge UK food delivery businesses.
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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Trade Uber shares
Uber listed on the New York Stock Exchange in May 2019. Find out more about the valuation, as well as how you can trade on, or invest in, Uber stock.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
