
A Glen Eden eatery is drawing attention to the hidden costs of Uber Eats deliveries after receiving just over a quarter of the revenue from $300 worth of orders.
Lixiri鈥檚 Kitchen dishes up Vietnamese food to the West Auckland community, operating delivery through Uber Eats, Doordash and Order Meals.
The cafe-restaurant has posted a screenshot to the Glen Eden, Henderson, Sunnyvale and 艑r膩tia Area Community group, highlighting the costs of corporate food delivery services.
From a week of Uber Eats orders totalling $300, the restaurant got a measly payout of $85.36.
That鈥檚 only 28% of the orders鈥 total value.
Zoe Do, the restaurant鈥檚 manager, said Uber Eats does not reduce its commission when applying 鈥淏uy 1, Get 1 Free鈥 deals, charging restaurants a service fee based on the total price 鈥 despite their reduced profit.
Lixiri's Kitchen made a profit of $85.36 on an order of $300. Photo / Lixiri's Kitchen
鈥淚n one case, we were included in a campaign without our consent or knowledge, and we鈥檙e still waiting for an explanation from Uber Eats regarding how this occurred.鈥
In a statement to the NZ Herald, Uber New Zealand said the service鈥檚 costs are a choice users agree to.
鈥淩estaurants have full control over their pricing on Uber Eats, reflecting factors like ingredient costs, supply chain pressures and daily operating expenses.鈥
It says service fees are as low as 6% for pick-up and as high as 30% for delivery.
鈥淭hese options give restaurants across Aotearoa flexibility and control over what works best for their business.鈥
Lixiri's Kitchen in Glen Eden is urging people to order directly from their local restaurants.
But Do said the app鈥檚 service fees don鈥檛 include GST, advertising or promotions 鈥 all of which hit small businesses hard.
In order to 鈥渙ffset the platform鈥檚 high fees鈥, Lixiri charges Uber Eats customers slightly more than in-store prices 鈥 but nothing above a 15% increase.
鈥淲e try to keep the price difference minimal while staying sustainable.鈥
Uber argues that restaurants benefit from exposure, citing the company鈥檚 2024 Economic Impact Report.
It claims 70% of the app鈥檚 customers found new restaurants on the app, with a further 58% going on to dine in person.
However, Do is encouraging customers to go direct to local restaurants.
鈥淲e completely understand that life is busy and that delivery apps offer convenience鈥, she said.
She suggests customers should consider ordering online or through the phone where eateries offer that option.
鈥淭his helps you avoid hidden fees and allows us to keep more of the revenue 鈥 which goes right back into making better food and service for our community.鈥
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