Uber's Newest Plan Reeks of DESPERATION


Jan 5, 2019
Austin, Texas
What City & State do you work in?
New York, NY
You'll never believe this. Uber is now going to try to make a buck off of taking orders from restaurant customers who are eating - in the restaurants! Yes! This reeks of desperation. They must be losing big, big money on everything else.

Their goal seems to be to make money off of transactions they didn't have anything to do with. Here's how it works. You go to your favorite restaurant because you feel like eating OUT. Something people still love to do. But Uber realized, gee, they don't make any money when people eat OUT. They only make money when people eat at home. So now they've come up with a brilliant plan to make money off of people who eat out too.
You know why these people are so happy? Because they didn't have to talk to the waiter!
(You know why these people are so happy? Because they ordered through the Uber app)!

So, you go to your favorite restaurant. You sit down at a table and when the waiter comes over, you brush him off and tell him you don't need him. Why? Because you're going to place your order through the UBER APP! Yesiree indeed! Why trouble yourself talking to some bothersome waiter when you can do it through the app. Especially when you can get Uber involved who is going to mark-up the price so they can take a cut.

You place your order through the app and a few minutes later the same waiter returns with your food, which he gently places on the table in front of you and you then consume your meal. When it comes time to leave, no reason to bother waiting for a check or fumbling in your pocket to find your credit card. You've already paid through the Uber app!

And Uber thinks they're going to make money from you and the restaurant. They're going to mark-up the food prices to the customers who will then pay more for the great convenience of being able to leave their wallets at home. And they're going to charge the restaurant a percentage of the sale, which they will gladly pay because their waiter didn't have to use the order pad they pay for to write down your order!

Makes sense, right? No? Still confused? Well, read below, Ali Griswold of qz.com probably does a better job explaining it than I did!

Eating in.
Imagine if when you ordered on Uber Eats you had the option to pick up your food at the restaurant you were ordering from and eat it there. It wouldn’t be delivery or takeaway, but rather a normal restaurant dining experience, except instead of interacting directly with the restaurant you’d handle everything through Uber. Uber would take your order, sort your bill, and collect your tip at the the end.

That would be weird, right? Uber Eats is for getting something brought to you. The convenience proposition is that you, from the comfort of your home, can tap a button on your phone and have food show up at your door in a matter of minutes. If you wanted to eat at the restaurant you would just show up and eat at the restaurant. Why would you need Uber to intermediate that experience?

Uber Eats will now deliver food to customers in the most unexpected of places -- restaurants. The food delivery and pick-up app's "Dine-in" feature is now being pilot-tested in Dallas, Austin, Phoenix and San Diego, according to an Uber spokesperson.
Okay, never mind.

One reason the delivery business is tough is that delivery companies are fundamentally middlemen between you, the consumer, and the restaurant. Groceries and restaurants have famously thin margins, and so handing over a commission on orders to a delivery company often isn’t an attractive proposition, but the pitch is that delivery helps bring in new customers and wring more use out of fixed costs like a kitchen and restaurant staffing, and with enough volume that should be good for business.

The Dine in proposition, on the other hand, is… what? The customer eats at the restaurant, taking up valuable real estate, and is served by its staff, but the transaction is managed by Uber, which also takes a commission on the exchange. The restaurant does all the things it usually does, but somehow Uber also gets a cut. The benefits of this setup to Uber are more obvious: It charges the restaurant a fee for taking the order and even sometimes marks up prices while eliminating the cost of labor, which is basically the dream.