Uber Eats is a subsidiary of Uber Technologies. It was initially introduced alongside with Uber’s original platform. Uber Eats eventually grew in size and extended its reach in terms of customers. The potential for Uber Eats began to flourish, and therefore the platform was eventually separated.  

Business leaders of Uber Technologies decided that Uber eats would be required to be operated on its own platform. The platform is designed specifically for individuals to order food from their favorite local restaurants and carry-outs.

Uber Eats platform even provides delivery of carry-out for those restaurants and food places that do not offer delivery.

Uber Eats was originally launched in 2014. The platform offered its services across San Francisco, California. Uber Eats platform was originally founded by Travis Kalanick and Garret Camp. The idea was to provide a platform for channeling and offering one of the best food ordering platforms in the industry.

Today, Uber Eats has branched its business into other emerging markets and other business opportunities. Uber Eats operates in over 500 cities and has a network of more than 220,000+ restaurants.

According to the verge, Uber Eats has reached over 50% of the United States population in a time span of just under 5 years. But the question that comes to mind is, how does Uber Eats make money, and how can you benefit from the platform? That will be examined in this article.

• The Uber Eats Platform
• How Uber Eats Makes Money?
• Payment Methods Offered by Uber Eats
• How Much Does an Uber Eats Order Cost?
• How Do You Become an Uber Eats Driver?
• How Much Money do Uber Eats Drivers Make?
• How to Make More Money as an Uber Eats Driver

The Uber Eats Platform

With the help of their existing platforms and users, Uber Eats was able to get a positive upturn in terms of active customers and revenue.

Uber Eats platform is one of the major platforms that bring a substantial amount of revenue to the overall Uber business. The majority of the orders are processed via application through means of a smartphone. 

Although the platform was aimed at the USA regions, it has expanded its operations across international markets such as South America, Europe, Asia, etc.

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Since Uber Eats is a subsidiary company for Uber Technologies, Uber Eats cross-promotional ads were initiated specifically for the San Francisco area, with only a handful of local restaurant listings.

Through cross-promotion, Uber was able to capture additional revenue through means of providing a new subsidiary company like the Uber Eats platform.

How Uber Eats Makes Money?

If you too wonder, how does UberEats make money? The following is a complete report of how Uber Eats makes money and its revenue model.

Uber Eats utilizes an aggregator model, in which a good balance of participating restaurants, drivers, and customers is key for the successful growth of the business.

Below is the revenue flow in the Uber Eats ecosystem:

• Standard Delivery Fee OR Convenience Fee: Uber Eats charges a flat delivery fee from its customers irrespective of the order value. The charges vary from $1 to $5 depending on the market they are operating in.
• Recurring Revenue Share from Restaurant Partners: Uber Eats takes a cut of 15% to 40% on every order that is fulfilled from the Restaurant partners. Uber Eats decides the percentage of the commission depending on the age and maturity of the market.
• Marketing & Advertising Fee from Restaurant Partners: Uber Eats is helping their restaurant partners attract more customers and reach a larger customer base by offering customer-facing brand campaigns, relatable social posts and email marketing to Uber’s rider base.

1. Restaurant Partners

Uber Eats charges a service fee from the restaurant partners, and it’s a percentage of the food order (subtotal).

Uber Eats charges about 30 % from the restaurant partners.

2. Delivery Partners

Uber Eats charges a service fee from the drivers for utilizing its platform. And the service fee = [Delivery fees paid by customers] minus [amount earned by the driver]

It’s important to note that the delivery fee paid by the customer is less than what Uber Eats pay to the drivers.  Uber Eats drivers earn based on actual time and distance required for the food delivery.

Also, drivers make additional money with incentives and referrals, which is important to attract more drivers to its platform. Thus, the overall payment to drivers is higher than what the customer pays for delivery. 

Driver Partner Fee Breakdown

Here is an example breakdown of UberEats driver’s fee based on the location, efficient route, and surge charges.

• Pick up fee: $1.50 per trip
• Drop off fee: $1.00 per drop off
• Distance fee: $0.65 per mile
• Time: $0.30 per minute based on expected wait time at a restaurant and travel time.

3. Customer Fee Structure

When a customer places an order on Uber Eats app, there are three types of fees:

• Service fees – it is 15% of the food order (subtotal).
• Delivery fees – it varies depending on the restaurant, location, availability of the driver, etc.
• Small order fees – orders less than $10 are subjected to small order fees of about $2.

Payment Methods Offered by Uber Eats

Since Uber Technologies is the parent company, all payments and transactions are processed under the Uber Technologies account. They are responsible for receiving all the payments from the following departments that are owned by the parent company;

• Uber Eats
• Restaurant partnership
• Uber Freight
• Uber For Business
• Advanced Technologies Group
• Uber Elevate

Method of Payments

• Option 1: Credit / Debit card
• Option 2: PayPal
• Option 3: Venmo
• Option 4: Connect Bank Account
• Option 5: Uber Cash

Uber Eats business revenue model has proven its worth and ability to grasp and gain the growth that it had gained over in just 5 years.

Through the strategic initiatives and key partnerships with restaurant chains such as Starbucks, McDonald’s, etc., Uber Eats is successfully growing aggressively across the United States and the international market in terms of revenue and overall company image and value.

How Much Does an Uber Eats Order Cost?

The cost of an Uber Eats order depends on a number of factors. The price of your meal, the location, and the time of day all impact your final bill.

Here’s how it works:

When you place an order through this service, you pay for a few different things.

• Cost of the food: This is the most important part. You pay for the full cost of your meal (unless you happen to have a coupon from the restaurant). This ranges depending on where you order from (and how hungry you are!)
• Booking fee: This is the fee that Uber charges you for their services. It used to be a flat rate of $4.99 per order. But now, it ranges from $2 to $8 depending on your distance from the restaurant.
• Taxes: You have to pay taxes on your order, of course. Meal taxes vary from state to state, so the exact cost depends on which city you live in.
• Tips: This is how Uber Eats drivers make their money, so it’s important that you factor this into the cost.

Remember, if you treat your drivers well, they’ll probably make you a priority if they’re assigned one of your orders in the future. Currently, you tip in cash or through the app.

Ultimately, when you use food to order this service, you should expect to pay full price for your food and a couple of extra dollars for the convenience of it.

But, you can occasionally get a deal on your order by using a promo code. Right now, for example, Uber is offering a Promo Code which will help you save a few bucks on your first order.

How Do You Become an Uber Eats Driver?

It’s super easy to become an Uber Eats driver. If delivering food for Uber sounds like a way you’d like to make some extra cash, here’s what you do:

Make sure you meet the following driver requirements:

• You live in a city where Uber Eats is offered.
• You are at least 19 years of age (or 21 in Canada).
• You have a valid driver’s license, vehicle registration and proof of insurance.
• You have at least 12 months of driving experience.
• You can lift up to 30 pounds (some of those food orders get heavy).
• Ability to pass a background check (more on that below).

Make sure your vehicle meets the following requirements:

• It was manufactured after 1998.
• It is not reconstructed or built from salvaged parts.
• It is reliable (you should depend on it to get you from Point A to Point B).

We should note that these vehicle requirements only apply to people who plan to drive. Uber Eats does allow their runners to ride a bike (or even walk) if they live in an area where that’s possible.

They also only apply to food delivery drivers. In other words, if you want to drive for UberX in addition to delivering food, there are a few additional cosmetic requirements your vehicle must meet.

But, as long as you and your vehicle meet the necessary criteria, you’re free to get started.

Here’s what you should do next:

Apply on the Uber Eats website by clicking the “Sign In” button located in the top-right corner. Then, enter your phone number and click “Next.”

After that, you should fill out the application and submit your documents (license, proof of insurance, etc.).

You’ll also have to consent to a background check. Uber conducts background checks on all of their employees to ensure that no one with any major traffic violent or a history of violent crime is working for them.

Luckily, their background check doesn’t involve a credit check, so don’t worry if your credit looks less than stellar. Typically, the background check takes 5-7 days (according to the company.

But some drivers report that it took as long as a month. Once it’s complete, though, the company will reach out to you via email. If you’ve passed the test, you’re good to go! All you have to do is download the app, log on, and start taking orders!

How Much Money do Uber Eats Drivers Make?

As with most gig-based jobs, the amount you earn directly reflects the amount of time you put in. So, if you want to make a lot of cash on Uber Eats, you’ll have to deliver a lot of orders.

But, you’re probably wondering how much Uber Eats drivers are paid for each order.

Well, here’s how it works:

The company calculates your pay by totaling pickup fees, drop-off fees, and mileage.

Sometimes, they’ll add in some extra money if you work during busy times. Then, they take a 25% cut and give you the rest.

Let’s look at this a bit closer.

Pickup fees are fixed fee that you’re paid just for retrieving the order from a restaurant. This fee is set ahead of time. Usually, it’s around $2.50 per order, although it increases in busy cities and when the demand for drivers is higher than normal.

Drop-off fees are similar. This is the amount that the company pays you for getting the order to the customer safely.

Typically, the pickup and drop-off fees are roughly the same amount.

It should be noted here that they’ll occasionally ask you to pick up multiple orders from the same restaurant. In other words, you’ll pick up two or three pizzas and take them to different houses.

When you do this, Uber Eats only pays you one pickup fee. However, they’ll compensate you with two delivery fees for each additional customer. Mileage is also compensated if you deliver in a vehicle.

The company pays you a certain rate for every mile you drive during your shift.

So, if you have to drive a long distance to deliver a particular order, you’ll receive more money to compensate you for gas.

Like the delivery fees, the mileage rate varies depending on your city and the type of vehicle you drive. Most of the time, it’s between $0.50 and $1.25 per mile. Of course, delivery drivers usually receive tips. The great thing about tips is that Uber keeps their hands off of them.

If the customer gives you anything extra (either in cash or through the app), it’s 100% yours. And, they also give you the opportunity to earn more income through Surge Pricing and Boost Earnings.

Surge Pricing? Boost Earnings?

Well, Surge Pricing is a program that Uber uses to incentivize drivers to work during busy times. Like most delivery companies, they experience a rush during lunch and dinner as well as on certain days of the week.

So, if you drive during a Surge time, they’ll multiply all of your earnings by a set rate. If the Surge rate is 2.5x, for example, they’ll multiply any money you make by the number during the Surge hours.

If you work for a full shift, then, it’s likely that you’ll make far more money than you would otherwise.

Boost earnings are similar. But, they revolve more around location instead of the time of day. During Boost periods, drivers are rewarded for working in a certain location when that location is busy.

If there’s a convention or event and a lot of people are expected to place orders, the company wants to encourage their delivery drivers to work in that area.

So, they’ll multiply your earnings as a way to thank you for helping them out when they’re busy. You can find out where/when boost earnings are taking effect by looking at the map in your Uber app.

Sometimes, Uber may even notify you via email ahead of time, so check your email regularly to stay on top of boost periods.

Ultimately, delivery drivers make around $12.25 per hour on average.

Of course, you can make more (or less), depending on how often you take advantage of Surge Pricing and Boost Earnings.

How to Make More Money as an Uber Eats Driver

If you’ve spent any time at all working for Uber’s delivery service, you’ve probably already realized that making a huge amount per week is difficult, probably even very difficult.

While it is hard to earn that much money delivering food, it’s not impossible to do. But, you’ll have to work hard. And, you’ll have to work smart, too.

There are a few little tricks you can implement to earn more money as an Uber Eats driver. And while they often involve hustling a bit harder, they’ll ultimately lead to more cash flow.

Treat it Like a Full-Time Job

This is the key to making the most amount of money with Uber Eats–you must work full-time.

When you work as a delivery partner, it’s easy to put off work because you want to sleep in, go to bed early, or hang out with your buddies.

But, if you had a traditional 9-5 job, you’d be responsible for being there every day. So, you should do the same when you work for yourself.

If you treat your job as a food delivery driver like it were a 9-5, you’ll find that you’re able to earn at least $100 a day (unless it’s a particularly slow day). And, if you hit all of the Surge and Boost times on top of that, you can earn a lot more.

Therefore, to earn the maximum amount of money possible, you should start by figuring out which times are the busiest and then build your schedule from there.

You probably won’t see too much action while people are at work during the week, because those aren’t the busiest times — except for lunchtime.

But, that’s something to consider when you work a non-traditional job — the hours are going to be non-traditional. Once the cash starts rolling in, you’ll be happy that you put in all the hard work.

Double as an UberX Driver

One of the nice things about working for Uber is that they let you switch interchangeably from one service to another. In other words, you can drive for both Uber Eats and UberX at the same time.

If you’re already an Uber driver giving people rides around town, it’s super easy to opt-in to the Uber Eats platform. After all, you’ve already met the driver and vehicle requirements, so Uber knows that you’re reliable and driving a decent vehicle.

And if you’re an Uber Eats driver who wants to start ridesharing, the process is also pretty easy. Unfortunately, you’ll have to call the company directly or visit your local Uber headquarters, as there’s no easy way to opt-in to becoming an UberX driver through the driver app.

But, as long as your car meets the ridesharing requirements, it should be no sweat to switch from one to the other.

In this case, it’s easier to drive for Uber instead of becoming a Lyft driver due to the ease of opting into Uber Eats as an existing Uber driver. Driving for Lyft is a great option, but it will likely be easier to switch back and forth between Uber Eats delivery app and the Uber driver app.

The best part about working for both services, of course, is that they each get busy at different times.

So, you’ll be able to earn Surge rates through Uber Eats during lunch and dinner and again during the late-night rush after the bars close with UberX.

Turn Your Vehicle into an Advertisement

There are a few ways you can earn some extra money through other companies while working for Uber at the same time.

One company called Wrapify, for example, will pay you to turn your car into a moving billboard.

They offer to wrap an adhesive vinyl advertisement around your car (kind of like a NASCAR vehicle). Then, they’ll compensate you for every mile you drive.

It might sounds crazy and a little odd, we know. But, according to Wrapify, it can earn you up to $500 per month.

Interestingly enough, it’s somewhat difficult to get approved for work in an area where this type of advertising will be effective.

So, before you’re able to wrap your car, you must use their app to track your would-be driving route and verify that it will be worth it.

If they find that you drive in a region where they want to advertise, they’ll reach out and schedule an appointment to get your car wrapped. This isn’t a bad way to earn some extra cash, either, given the fact that it takes very little work on your part.

Sure, your friends may make fun of you for having a giant picture of a cheeseburger plastered on the side of your vehicle, but it’ll be worth it if you can earn extra money each month.

Be Extra Courteous

Tips are crucial for Uber Eats delivery drivers. After all, while the company takes 25% of your income from each order, they don’t touch your tips. Those go straight to your pocket.

So, it helps to earn as many tips as possible. And the happier your customers are, the more tips you’ll make. Therefore, we recommend that you go above and beyond to ensure that they have a good experience.

It doesn’t take much to be polite (say “Thank you” and “Have a good day,” saying the customer’s name, etc.), and if it’s the difference between getting a nice tip or a few dollars, it’s worth it.

But, you can also do little things like grabbing paper plates, plastic silverware, and straws from the restaurant. If your customer doesn’t need them, they’ll probably still appreciate the kind gesture and may give you a larger tip.

Even if they don’t give you an extra tip, your thoughtfulness will garner positive reviews and can earn you more food delivery offers through the app.

It’s important to keep in mind that if you’re trying to make the most money you can as an Uber Eats driver, you must work hard for it.

Sure, you can make deliveries and do the bare minimum and get by fine, but what will set you apart and make this a successful gig is hard work.

Plan for Boost Earnings Ahead of Time

Uber has another excellent incentive program to encourage drivers to work when there’s a high demand.

It’s called Boost Earnings.

Whenever the company needs drivers, they’ll increase wages to ensure that they’ll have people out on the road.

Usually, they implement a Boost Earnings promotion whenever there’s a big event in town. So, if there’s a convention or a big game, for example, they’ll increase driver rates to make sure that there are enough cars to meet the demand.

Like Surge Prices, Boost Earnings are a multiplied pay rate.

For example, if the Boost Earnings multiplier is three times the average rate, they’ll multiply all of your earnings for your shift by three. So, instead of earning $5 for completing a drop-off, you’ll make $15.

Typically, the company will notify you of a Boost Earnings promotion ahead of time, so read the text messages and emails they send you!

Then, make sure that you’re available to work the entire Boost shift. That way, you can maximize the amount of money you make that day.

Earn Referral Bonuses By Inviting Your Friends

Uber’s delivery business depends on new drivers signing up to deliver food and complete orders. So, they’re always looking for capable, hard-working people to join the team.

They’re so eager to hire new contractors that they’ll pay you to bring your friends on board.

Here’s how it works:

When you download the app and become a driver, you can create a Referral Code. Essentially, this is a promotional link that you can use to invite your friends to become drivers.

If you send out that link to your buddies and they sign up to work as Uber Eats drivers, the company will pay you once they complete a certain number of deliveries.

The exact reward amount and the number of trips your friend has to complete vary from city to city, depending on the demand for drivers. One driver in Providence, RI said that they received a $50 bonus for referring a friend while someone in Austin, TX claims that they got $300 for a referral.

Either way, it’s never a bad thing to make some extra money for doing very little on your end.

Limit Your Working Area

Working within a small radius can help you earn more money as opposed to trying to cover a large area. It not only helps you to cut down on gas but it also allows you to travel quickly from one job to another.

So, if there’s a restaurant-heavy spot in your town (like a strip mall), you should park there and wait for orders. You’ll save a lot of time (and money on gas) if you limit yourself to orders from local restaurants in that area and return to your spot whenever things are slow.

Also don’t be afraid to reject orders if they require too much driving. Often, taking those can be more trouble than it’s worth.

It might take you a little while to figure out where the hotspots are. But, once you do, you may find that it’s easier to accumulate cash.

Don’t Miss a Surge Period

Certain times of the day are busier for Uber Eats than other times of the day. Lunch and dinner time, for example, tend to bring in a lot more orders than breakfast.

Because there’s a higher demand for drivers, Uber Eats increases the pay rate to incentivize drivers to work during these times. They refer to these times as “Surge Periods.”

So, one of the best things you can do to earn more cash is to make sure you work during Surge pricing times whenever possible.

During these times, you can earn up to two or three times as much as you’d make during a regular shift.

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Not only are you paid more for each delivery, but you’ll also have a more significant influx of orders, too. You can find areas with Surge pricing by looking for the highlighted areas on the map in the Uber Eats app.

Typically, Surge prices occur around the same time and in the same areas every week. So, pay close attention to when they happen so that you can build your schedule around them and maximize your income.

Work For Other Meal Delivery Services

It’s great working as a delivery partner because you’re not tied down to any one company. Therefore, you can drive for as many food delivery services as you’d like and minimize any long wait in between deliveries.

And there’s no shortage of them. Today, there are more than a dozen online food delivery request platforms available on the market. Most of the top services, like Postmates, DoorDash, and Grubhub are in every major US city and some are in major Canadian cities like Toronto and Vancouver.

So, by driving for more than one, you’ll be able to maximize the number of orders you take on during each shift.

If Uber Eats is particularly slow on a specific day, for example, you can open up your DoorDash app and wait for orders to come through there. That should fill your time until the Uber Eats orders start coming.

This works exceptionally well in areas that have a lot of restaurants because every restaurant works with different platforms. So, if your normal working area has 17 restaurants and ten of them work with Uber Eats, it’s likely that the other 17 work with another platform.

By signing up for those platforms, too, you can ensure that you’re never missing out on a potential order.

Of course, we don’t recommend that you work for every platform all at once. It can get challenging to multitask, and we all know how that can end up (mixed-up order numbers, forgotten items and order details, etc.).

But, by keeping a hand in each platform, it’s likely that you’ll always have something to do.

Conclusion

After considering the available information, it sounds like it’s entirely possible to make good money on Uber Eats. But, in order to really profit, you’ll have to drive smart, cut down on gas, and work your tail off.

No matter how drivers feel about it, though, it appears that Uber Eats is here to stay. So, whether you’re looking for a full-time job or a way to make some extra cash on the side, this platform will be on the food delivery radar for years to come.