Uber Eats trialling variable delivery fee model in Melbourne

Melburnians will be stung with higher Uber Eats delivery fees in a new pricing model that could eventually be rolled out across Australia. HAVE YOUR SAY

Uber has a plan to charge Australians more for delivery through its popular app Uber Eats.

The company has added another city to its trial of a new sliding-scale pricing model for its delivery fee, which could see its $5 metro and $6.95 regional flat rates abolished.

It would mean higher costs for those whose favourite restaurants are further away from their point of order.

Uber Eats introduced a variable delivery fee in the US last year. Picture: AAP

Uber confirmed to News Corp Australia today it had commenced the trial in Melbourne earlier this month, with some eaters slogged as much as $7.99 to have their meal brought to them. However, if the restaurant is closer to where the order is made, the delivery fee could be as low as $1.99.

The dynamic pricing model is not affecting all users at present, but the company said by July 2 all Melburnians will see the new fees in the UberEats app.

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The Uber Eats app showing different delivery costs. Picture: Supplied

In January this year, News Corp Australia reported it started conducting the same trial in Brisbane where a $3.95 fee was charged for restaurants closest to the user and $6.45 for those farthest away. It’s understood the city now has variable pricing as a permanent fixture.

It’s unknown whether Uber will test the new model in other Australian cities it operates in, including Sydney, Adelaide, Hobart and Perth.

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The move follows a decision by Uber last year to roll out dynamic delivery fee pricing across the US.

An Uber spokesperson told News Corp the company was investigating ways to lower delivery fees, and if results were favourable, it could be introduced on a permanent basis across the nation.

“Through this trial, we will explore whether technology can help unlock more affordable delivery fee options for eaters, while still providing access to further away restaurants at a higher price. We hope this change will help to ensure the efficiency and sustainability of the Uber Eats marketplace,” the spokesperson said.

“Results from similar trials in the US have been encouraging, but as Australia is a different market the real-world impact of these new delivery fees needs to be trialled before determining next steps.”

Deliveroo introduced a dynamic pricing model last year. Picture: Penny Stephens

Major competitor Deliveroo introduced a variable delivery fee last year, with customers now paying a minimum of $2.95 to a maximum of $6.95 depending on their distance from the restaurant.

However, it offers a Deliveroo Plus service for $18.99 a month, which provides free delivery.

And at Menulog, restaurants decide the delivery charge, with some requiring a minimum order amount for the food to be couriered.