How does UberEats Work?
UberEats is a mobile and online food ordering platform from local restaurants and having it delivered at your doorstep. The UberEats app is a subsidiary of Uber Technologies, Inc.,the company behind the world’s largest ride-sharing app.
As of 2019, UberEats associated well over 50,000 restaurants which allows customers to order off their full menus through the app.
How does it work?
UberEats clone platform.
UberEats benefits three different parties: customers, restaurants, and drivers. Here’s the process of how the app works and features integrated with apps.
If you aren’t in the mood for dine out, UberEats gives you the solution to get food at your doorstep. Just scroll down through the app/website to order your favourite food. It allows users to view all of their options in their area or search for a specific restaurant or cuisine to order food.
UberEats allows users to follow these steps:
- Search your favourite restaurants
- From restaurant menus, order food
- Track your order in the app.
Placing the Order – Confirm your delivery location/address, simply place the order at your favourite restaurant, hold for some time till your restaurant accepts your order and status on food preparation, then wait for your order to arrive. Orders can be tracked through customer apps in real time. So, the customers will not be left blank when their food arrives.
- Prepare the orders
Restaurants receive orders when someone has ordered food through the app. Simply, restaurants need to prepare the food to deliver and once food is prepared, automatically order will be assigned to the available delivery person. The delivery person will get the location and address of the customer. Like customers, the restaurants also can track order from the restaurant to its destination. After completion of delivery, the driver & restaurant will get instant notifications about the delivery.
When it comes to revenue generation, for every sale the restaurant will get hold of 70% of the profit, as UberEats will get hold of 30% commission of every order.
UberEats drivers could be hired as freelancers, are paid on every sale and have a lot of flexibility to work. Here, UberEats drivers will be allowed to choose their own schedules to work – days to work and time to work per day. Drivers are able to deliver food with their own vehicle.
- Drivers can choose your work hours
- Use your own vehicle.
However, as freelancers and not employees of UberEats, drivers do not receive any extra benefits or paid time off.
How UberEats Revenue Generates to Make Money?
In the typical food-delivery transaction, UberEats make money by charging a fee to the customer and cut off the bill from the restaurant and pays to the delivery person. UberEats generates revenue in many ways, includes:
- From restaurant partners – one-time payment and commission fee
- From the customers – service fee, small order fee and delivery fee
- Monthly subscription fee
- Investor funding.
Customer fee and subscription model:
What customer will pay?
- Delivery fee
- Service fee
- “Small order “ fee for orders less than $20, and
- Tips for the driver
For the first time when the customer places an order, the platform charges the customer a number of fee.
Service fee is 15% of the order’s total, and small order fee are $3, while delivery fee varies depending on the restaurant and location. UberEats also uses the subscription model to earn more revenue. Every customer will be allowed to pay a subscription fee of $9.99 each month. From the app, each subscriber will have a 5% discount on orders above $10 without delivery fee.
Company’s growth has been possible due to major benefaction from investors who are attracted to the promising growth of the online ordering system for restaurants and ride sharing markets.
Where it stands in the food delivery market
UberEats has seen huge growth in the online food delivery industry. In 2019 nearly 10% growth in the U.S. food delivery market to a nearly 30% share in 2019.
Every year, UberEats exhibits an effective strategy for market domination and for its huge growth.
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