How Much Does Uber Eats Pay?

In general, a Uber Eats rider might make anywhere between $15-20 an hour in the US. Uber Eats has a take rate of 17-20% on each order placed by the customer. Uber Eats riders' hourly rates can vary based on geography and route availability. How does the Uber Eats fee structure work? Uber's fees are part of the delivery charge, which the restaurant charges; those usually include: Delivery fee This fee varies based on location. Service fee The fee varies based on the order's size, typically 5% of the subtotal. Small order fee For most restaurants, a fee will apply to orders under a certain amount. Uber Eats fee structure example Approximately, this is how the unit economics should reflect: Amount paid by customer: $50 + $5 $55 The amount received by XYZ restaurant: $50 - (30% commission on order) $35 Delivery Charges: Pickup Fee + Delivery Fee + Per Mile Charges $4 + $2 + ($2 x 3) $12 Net Revenue for Uber Eats ($55 - $35) - $12 $8 Uber Business Model Uber Eats Business Model Food Delivery Business Models Visual Stories Connected To Uber Uber Uber is a two-sided marketplace, a platform business model that connects drivers and riders, with an interface with gamification elements that make it easy for two sides to connect and transact. Uber makes money by collecting fees from the platform's gross bookings. Uber Revenue Is Uber Profitable? As of 2022, on net revenues of $31.87 billion, Uber posted a net loss of $9.14 billion. In 2021, Uber posted a lower net loss ($496 million), primary thanks to the business divestitures of various assets. Throughout its history, on an annual basis, Uber has never made a profit. Yet, it has also shown incredible business growth, over the years, with its revenue at $3.8 billion in 2016, to almost $32 billion in 2022. Uber Eats Uber Eats is a three-sided marketplace connecting a driver, a restaurant owner, and a customer with the Uber Eats platform at the center. The three-sided marketplace moves around three players: Restaurants pay commission on the orders to Uber Eats; Customers pay small delivery charges, and at times, cancellation fees; Drivers earn through making reliable deliveries on time. Uber Eats Revenue In 2022 Uber Eats reached almost $11 billion in revenue, compared to over $8.3 billion in revenue in 2021 and $3.9 billion in revenue in 2020. Is Uber Eats Profitable? For the first time since its inception, Uber Eats' EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) - which measures a company's operational efficiency - was positive for $551 million, compared to negative $348 million in 2021; negative $870 million in negative EBIDTA in 2020; and over $1.3 billion negative EBIDTA in 2019. Uber Freight Uber Freight has grown from a $1 billion segment in 2020 to almost $7 billion in revenue in 2022, representing nearly 22% of Uber's total revenue in the same year. Uber Revenue Breakdown In 2022, Uber generated $14 billion from its core platform (mobility), followed by $10.9 billion from the delivery platform (Uber Eats) and $6.95 billion from the freight platform. The company generates most of its revenue in North America. Uber Advertising In 2022 Uber launched its advertising segment, which comprises revenue from sponsored listing fees paid by merchants and brands in exchange for advertising on the platform. By the end of the year, Uber advertising had generated $500 million in revenue from 315K merchants. Food Delivery Business Models In the food delivery business model companies leverage technology to build platforms that enable users to have the food delivered at home. This business model usually is set up as a platform and multi-sided marketplace, where the food delivery company makes money by charging commissions to the restaurant and to the customer. DoorDash DoorDash is a platform business model that enables restaurants to set up no-cost delivery operations. At the same time, customers get their food at home, and dashers (delivery people) earn some extra money. DoorDash makes money by markup prices through delivery fees, memberships, and advertising for restaurants on the marketplace. Glovo Glovo is a Spanish on-demand courier service that purchases and delivers products ordered through a mobile app. Founded in 2015 by Oscar Pierre and Sacha Michaud as a way to “uberize” local services. Glovo makes money via delivery fees, mini-supermarkets (fulfillment centers that Glovo operates in partnership with grocery store chains), and dark kitchens (enabling restaurants to increase their capacity). Instacart Business Model Instacart's business model relies on enabling an easy set up for grocery stores, the comfort for customers to get their shopping delivered at home, and an additional income stream for personal shoppers. Instacart makes money by charging service fees, via memberships, and by running performance advertising on its platform. Grubhub Business Model Grubhub is an online and mobile platform for restaurant pick-up and delivery orders. In 2018 the company connected 95,000 takeout restaurants in over 1,700 U.S. cities and London. The Grubhub portfolio of brands like Seamless, LevelUp, Eat24, AllMenus, MenuPages, andTapingo. The company makes money primarily by charging restaurants a pre-order commission and it generates revenues when diners place an order on its platform. Also, it charges restaurants that use Grubhub delivery services and when diners pay for those services. Shipt Business Model Shipt is a North American integrated delivery service for groceries, home products, and electronics initially funded by Bill Smith, a highly experienced entrepreneur with a history of creating successful start-ups; in 2014, Smith used $3 million of his own money to create the first iteration of Shipt, the company was acquired by Target in 2017 in a cash deal worth $550 million. Membership fees predominantly drive Shipt revenue generation.