UBER Eats is now available in Swan Hill, however some local restaurants are opting not to sign up with the international food delivery giant due to significant hidden fees on small businesses.
The multinational corporation takes up to 30 per cent of each dish ordered through the platform, on top of additional fees for service and delivery.
Essentially, when a customer orders a $20 dollar meal, six dollars of that goes towards Uber Eats instead of the business.
Owner of Java Spice and Cafe 202, Upinder Kalra, said it was too much to lose in sales and too high a price put back on the customer.
“Uber Eats takes around 30 per cent non-negotiable of each sale; a restaurant also does not receive their sale immediately,” Mr Kalra said.
“The delivery fee is also taken from the sale. Java Spice and 202 would not be prepared to pass on these extra expenses to customers.”
The small business owner also said he did not want the delivery giant dictating his kitchens.
“After discussions with Pete and Trish, the previous owners of Java Spice, we agreed that Uber Eats would not be a beneficial option for Java Spice,” he said.
“Uber Eats expects businesses to prioritise their orders; Java Spice is not prepared to place Uber Eats orders ahead of dine-in customers or existing orders from our own online and phone ordering systems.”
Mr Kalra said there are disadvantages of not signing up with Uber Eats, especially the risk of losing sales to visitors who are travelling from the city.
For other businesses, the allure of an expanded customer base outweighs the costs.
Joontek Teoh, the owner of House of Wok, said he hoped the delivery service would boost his business sales.
Mr Teoh said prices on the home delivery app would be around 15 per cent higher than normal in-store prices and was worried customers would think it was the business itself taking the profit.
“We have no choice, because there are no other delivery services,” he said.
“If Uber Eats prices were lower, (our) prices would be lower.
“They make more than me.”
Uber Eats told The Guardian restaurants can decide how they partner with the service, with marketplace fees ranging from six per cent per dish when customers pick up orders themselves, to 30 per cent when the food is delivered.
Uber Eats said they help small businesses by reaching more customers, saving time on taking orders, and providing a new revenue stream for near zero capital investment.
However, Mr Kalra also questioned how much of the money would stay local and how much the international giant would give back to community.
“Java Spice, 202, and I’m sure other restaurants in town often support local groups,” he said.
“A percentage of Uber Eats money heads back to the USA; our money stays local.”
In recent years, the multinational has also come under scrutiny for its treatment of “gig economy” workers.
Mr Kalra said Java Spice, which has had its own delivery service since the pandemic, provides local drivers with stable, reliable employment.
