Uber Eats trials variable delivery charges in Brisbane

Uber Eats will today begin an Australian-first trial in Brisbane with a move it says will save customers money and increase demand for restaurants.

UBER Eats will introduce variable delivery fees in Brisbane under an Australian-first trial that will set prices depending on how far a customers lives from a restaurant.

The trial, to be launched today, will scrap the flat delivery fee of $5 for a sliding scale ranging from $3.95 up to $6.45 per delivery.

Uber Eats head of operations Australia and New Zealand Matt Denman told The Courier-Mail the goal was to make meals cheaper for customers, increasing demand for restaurants and delivery drivers.

“To be as affordable as possible whilst maintaining the maximum amount of choice for eaters is our ultimate goal,” he said.

The 12-week trial in the Brisbane region will launch today and be rolled out progressively with all customers to be on the new fees by February 4.

Sam Hewitt has welcomed Uber Eats’ revised delivery charges. Picture: Tara Croser

Uber has been in discussions with restaurant owners about the changes since early December.

Mr Denman said there would be no change to the money made by restaurants and delivery drivers.

“It’s just changing the way that delivery fees are charged,” he said.

The service has been operating in Australia since 2015 with more than 15,000 restaurants signed up and tens of thousands of delivery drivers.

Inner-city customers generally pay a $5 flat fee while those in the outer metropolitan and regional areas are slugged $6.95.

Mr Denman said the new delivery fees would be clear for customers with no hidden fees or minimum orders.

“When they open the app for a given restaurant the delivery fee will be clearly listed in the first screen of the app so as you’re choosing which restaurant to order from you will know in advance what the delivery fee will be,” he said.

“We expect that eaters will make decisions about where to order from based on what the delivery fee they see upfront is.”

A similar pricing scheme was rolled out in the US mid last year with prices ranging from $2 to $8 depending on what city a customer was in.

Mr Denman said the results from the trial would help Uber explore the best pricing options and how they could offer affordable delivery fees for eaters but retain access to more distant restaurants.

“We’ll be assessing the response to this trial before determining whether a new range of delivery fees will be rolled out on a permanent basis and to other cities in Australia and New Zealand,” he said.

Food delivery regular Sam Hewitt, 25, believes that the change in delivery fees to compensate for distance travelled would be welcomed by most.

“I’d like to think most people would see it as a good change,” Mr Hewitt said.

“I’d order Uber Eats once a week, maybe twice, but because I don’t have any favourite restaurants that are further away I probably stand to benefit.

“People seem to order what’s most convenient to them, so if the food is further away I think people generally don’t seem to order it.

“Living in the city, there’s so many good food options that are so close.”

Originally published as Uber Eats trials variable delivery charges in Brisbane