SA restaurants quit Uber Eats because of customer complaints about cold food, and poor profit margins
POPULAR Adelaide restaurants are quitting UberEats while others question their future with the food delivery service, as they add up the cost to their reputations and profits.
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SEVERAL popular Adelaide restaurants have quit UberEats, while others are questioning their future with the delivery service, as they calculate the cost to their reputations and profits.
While most businesses report that joining the service has resulted in a significant increase in orders, regular customer complaints about cold food, incomplete or incorrect orders and waiting times has forced many to rethink.
A commission charge of 35 per cent also makes it difficult to make a profit in an industry where margins are tight. Plus, restaurants face increased competition from operators setting up without a shopfront but supplying the service with food prepared in so-called “dark kitchens”.
More than two million Australians use meal delivery services in an average three months, according to Roy Morgan research. UberEats is the largest player in the sector.
Last month, the Australian Competition and Consumer Commission announced it was investigating Uber contracts to determine whether they were in breach of consumer law, particularly the way responsibility for problems with delivery is deflected back to restaurant owners.
For Antica Pizzeria owner Anthony Crea, the last straw was a complaint on Mother’s Day. “A customer rang and said, ‘you have ruined our Mother’s Day’,” he said. “They had ordered $150 worth of takeaway and it arrived stone cold. After this, I told my staff to turn off the service.
“(Uber Eats) drivers take on multiple deliveries. They’re picking up from the Asian next door, then the Mexican taco around the corner.
“So you might be fortunate enough to be the first customer and get your food hot, but if you are the third or fourth customer it will be cold. It’s become too greedy.”
Mr Crea said it had become “nearly a full-time job to deal with complaints” over the deliveries and Antica had been paying for many of the refunds even though it was not at fault.
“I think a lot of restaurants and cafes are in the same boat but don’t want to take the leap and leave Uber Eats,” he said.
Daisy Miller, co-owner of city Thai restaurant Sukhumvit Soi 38, left Uber Eats two weeks ago.
“We started noticing complaints with Uber were coming almost as often as the orders,” she said. “We started to think about the impact this was having on our brand.”
Ms Miller said her staff had also had to deal with Uber Eats drivers who were rude and aggressive. “We have sent through multiple complaints,” she said.
Other restaurants are also considering their future with the service. Co-owner of the Cinnamon Club Indian eateries Harsh Kumar said he was thinking of pulling out because, with the commission charged, “it is not worth it”.
Restaurant and Catering Australia deputy chief executive Sally Neville said that, while Uber Eats could bring a big spike in takeaway trade, particularly through the tough winter months, it was not reflected in the final accounting.
“We would say a lot of meals delivered by Uber Eats are not profitable for the restaurant,” she said.
An Uber Eats spokesperson said that they “encourage all of our restaurant partners to reach out to us directly to address any concerns or issues they may be having and we will work to resolve these with them. We want to support restaurants and welcome their feedback to help us improve our service”.
The price of convenience
Australians spend $2.6 billion on food and drink delivery, according to research from comparison site, finder.com.au
The average annual spend on food delivery in Australia is $1590, with Adelaide residents forking out $1234 compared to Sydneysiders on $1958.
The average food order on Uber Eats nationally is $36.50.
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