1851

Restaurant operators who partner with Uber Eats or Postmates (<a href="https://1851franchise.com/uber-eats-buys-postmates-responds-to-criticisms-with-planned-listening-tour-2714375#stories">the former acquired the latter in an all-stock deal late last year</a>) can now choose from one of three commission structures, ranging from 15% to 30%, with higher-priced tiers offering exclusive benefits designed to promote visibility on the apps.The new pricing model, <a href="http://www.ubereats.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=uber-eats-and-postmates-announce-new-tiered-pricing-structure-2716670" target="_blank" rel="nofollow">which was announced this week</a>, will replace the previous single "marketplace fee" that Uber Eats used to charge all partner restaurants.&nbsp;"In late 2020 ... we began testing new ways to offer even more choice and control over the fees they pay and the services they use when working with us,” said Sarfraz Maredia, VP of U.S. &amp; Canada for Uber Delivery, in a <a href="https://www.restaurantbusinessonline.com/technology/uber-eats-introduces-tiered-pricing-plan-restaurants?utm_source=1851franchise.com&utm_medium=article&utm_campaign=uber-eats-and-postmates-announce-new-tiered-pricing-structure-2716670" target="_blank" rel="nofollow">statement</a>. “Designed with input from thousands of restaurants across the U.S., we’re excited to make these new pricing options available nationally."&nbsp;These kinds of pricing structures could be a response to the backlash third-party delivery companies have seen over <a href="https://1851franchise.com/warning-restaurant-owners-third-party-delivery-services-are-taking-over-2710756">high commission fees</a>, which typically average at 30%, especially over the past year as delivery became a substantial lifeline for restaurants struggling through the pandemic.&nbsp;That backlash isn’t just talk; several cities, including <a href="https://1851franchise.com/how-new-yorks-delivery-commission-cap-will-affect-restaurants-and-delivery-providers-2716662#featured">New York</a> and <a href="https://1851franchise.com/san-francisco-caps-delivery-app-fees-at-15-percent-2712784">San Francisco</a>, have instated permanent 15% commission caps, while many other cities have enacted temporary fee caps during the pandemic. Uber Eats, along with GrubHub and DoorDash, is <a href="https://1851franchise.com/how-new-yorks-delivery-commission-cap-will-affect-restaurants-and-delivery-providers-2716662#stories">suing New York City</a> in an attempt to repeal the cap in that city.Uber Eats is the last major third-party delivery aggregator to roll out this tiered pricing option for restaurants — DoorDash launched its three-tiered commission fee <a href="https://www.restaurant-hospitality.com/delivery-takeout-solutions/new-doordash-pricing-tiers-offer-commission-rates-starting-15?utm_source=1851franchise.com&utm_medium=article&utm_campaign=uber-eats-and-postmates-announce-new-tiered-pricing-structure-2716670" target="_blank" rel="nofollow">structure</a> in April, while Grubhub also offers <a href="https://get.grubhub.com/flexible-pricing-packages?utm_source=1851franchise.com&utm_medium=article&utm_campaign=uber-eats-and-postmates-announce-new-tiered-pricing-structure-2716670" target="_blank" rel="nofollow">tiered commission plans</a>.Notably, Uber Eats has also adjusted its merchant contracts to allow operators to list different menu prices on the Uber Eats app and in the restaurant. This could be in response to the recently proposed <a href="https://1851franchise.com/could-this-bill-change-the-third-party-delivery-industry-2716606#featured">AB 286 bill in California</a> that aims to require food delivery companies to provide greater transparency into fees and commissions, as well as let operators set their own menu prices on the platforms.On Monday, Nation’s Restaurant News <a href="https://www.nrn.com/news/uber-eats-and-postmates-introduce-tiered-commission-pricing-operators-starting-15?utm_source=1851franchise.com&utm_medium=article&utm_campaign=uber-eats-and-postmates-announce-new-tiered-pricing-structure-2716670" target="_blank" rel="nofollow">outlined the new tiered commission pricing model</a>:<blockquote><ul><li>Lite: 15% commission fees. Restaurants will appear in direct search results but pricing model does not come with ad spend or benefits from Uber Eats pass members. Restaurant will not appear on Uber’s homepage. Uber says this option is best for merchants looking to save the most on fees. The rest of the fees will be passed on to the customer.</li><li>Plus: 25% commission fees. Restaurants will appear in direct search results, will show up on Uber’s homepage and Uber Eats pass members will receive benefits from ordering from them. Extra ad spend not included. The rest of the fees will be passed on to the customer. Uber says this option is best suited for operators that want to balance cost optimization with marketing options.</li><li>Premium: 30% commission fees. Restaurants will appear in direct search results, show up on Uber’s homepage and Uber Eats pass members will receive benefits from ordering from them. Uber will match extra ad spend up to $100. Minimal delivery fee passed on to customers. Uber says this option is best suited for restaurants in digital growth mode.</li></ul></blockquote>Now that all of the major third-party delivery providers offer tiered pricing, the increased flexibility could help owners scale their delivery operations depending on their budget and reliance on the off-premise revenue stream.&nbsp;However, while the new tiered model offers more transparency into the brands’ commission structure, it is unlikely to quell complaints that Uber Eats and Postmates pressure restaurant operators into unfair commission structures by controlling how easily customers can find their restaurants on the apps.Related Stories:<ul><li><a href="https://1851franchise.com/could-this-bill-change-the-third-party-delivery-industry-2716606#featured">Could This Bill Change the Third-Party Delivery Industry?</a></li><li><a href="https://1851franchise.com/chicago-and-new-york-city-crack-down-on-third-party-delivery-giants-2716558#stories">Chicago and New York City Crack Down on Third-Party Delivery Giants</a></li><li><a href="https://1851franchise.com/how-new-yorks-delivery-commission-cap-will-affect-restaurants-and-delivery-providers-2716662#featured">How New York’s Delivery Commission Cap Will Affect Restaurants and Delivery Providers</a></li></ul>

Uber Eats and Postmates Announce New Tiered-Pricing Structure

1851 Franchise

Restaurant operators can choose from three pricing models, each offering a different level of visibility to customers.

uber-eats-and-postmates-announce-new-tiered-pricing-structure

Busy Bee Jumpers

Top 10 Reasons To Buy a Busy Bee Jumpers Franchise in 2025

top-10-reasons-to-buy-a-busy-bee-jumpers-franchise-in-2025

Home Halo

home-halo-former-athletes-frachisees-image

Why Former College Athletes Can Make Winning Home Halo Franchise Owners

former-college-athletes-home-halo-franchise

TruBlue Home Service Ally

TruBlue Featured in USA Today as Key Player in Helping Seniors Age Safely at Home

trublue-featured-in-usa-today-as-key-player-in-helping-seniors-age-safely-at-home

Right at Home

Right at Home Marks 30 Years With Continued Franchise Growth

Right at Home Marks 30 Years With Continued Franchise Growth, Tech Advancements, and Strong System Engagement in First Half of 2025

right-at-home-franchise-growth-2025

KidStrong Franchising, LLC

Unlocking Superpowers: How KidStrong Is Building the Next Generation of Confident Kids — and Thriving Franchise Owners

kidstrong-franchise-confident-kids

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery 

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery in Overland Park, Kansas

paris-baguette-franchise-overland-park-khandelwal

Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

From Corporate Careers to Community Roots: Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

kansas-couple-opens-childrens-lighthouse-gardner-olathe

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

Uber Eats and Postmates Announce New Tiered-Pricing Structure

MORE STORIES LIKE THIS