Knowing that a significant share of their sale price goes to Uber Eats, the restaurant owner devised a more profitable plan.
In today's fastpaced world, people are functioning at a higher pace than ever before. Inevitably, our mealtime has also become quick these days. All we have to do is make a few swipes and taps on our phone and our food appears at our doorstep within minutes. Many restaurants have partnered with food delivery apps to maintain this flow. But this partnership might not always be a happy one. Recently, a pizza joint worker, u/Worldly-Scratch4984, took to Reddit to share how Uber Eats was pocketing a massive chunk of their sales. Unhappy with this, the pizza joint's owner came up with a hilariously brilliant idea to increase their profits.
The worker started their post with the question, "Uber Eats stakeholders want to bleed us dry?" Initially, the restaurant owner decided to improve sales by partnering with Uber Eats. They started advertising on the food delivery app and only then they learned that there was a catch. "According to my boss, Uber Eats takes a huge cut of the sales, up to 40%," the worker explained. So, the restaurant owner developed a new strategy to bring in exclusive customers while also not losing the reach they get from the delivery app.
"We just increased the price on the app to compensate for that 40% along with handing out a menu on each Uber Eats order with our real, in-house delivery prices," the worker explained. While still staying on the Uber Eats platform, the pizza joint owner informed customers about the price difference if they order directly. "We got a lot of new regular customers, originally from Uber Eats, ordering directly from us. I'd get a lot more tips now," they added. Though the worker knew that their boss benefited more than them from this strategy, they simply felt the need to lay out the facts about today's reality in businesses.
The since-deleted post garnered attention and many could relate to this scenario. "What kills me is that places like Jimmy Johns that used to proclaim 'Freaky Fast delivery,' now use Uber Eats or Door Dash for their deliveries, even when you order through their own app," said u/Hag_Boulder. "They all do that. Even worse, because the restaurant isn't managing the page, no one is. Not only do they not update menus/hours/holidays, they don't remove restaurants that go out of business," commented u/MyNameIsRay. "That is the problem with a publicly traded company. While private, you can make money year-over-year and those earnings can be flat, but you are still profitable. Once you go public, the stake/stockholders want to see those year-over-year earnings explode," added u/jeffrey_f.
Speaking of delivery apps becoming a source of marketing, an innovative Uber Eats driver made the headlines for attaching his business card with orders to advertise his own business. A Winnipeg-based real estate agent, Ryan Smith (@ryansmithrealtor2), shared his intellectual marketing idea on a TikTok slideshow. He spread the word about his real-estate business by attaching his business card to all the food orders he delivered. "Sometimes you have to get creative!" he said.