For years, Uber has subscribed to a “surge” pricing model that increased the cost of a ride during peak times, like rush hours. Now, the ride-sharing company is taking that idea and bringing it to its UberEATS food delivery service in certain markets.
Uber announced Thursday that in order to “maintain the speed, reliability, and selection” of its UberEATS service it will implement surge pricing for some customers.
For now, Uber says the rollout of surge pricing for UberEATS will be limited to select cities when customers “order from restaurants in areas where demand is high but delivery partners are scarce.”
Uber did not specify which of the 43 cities that offer UberEATS will use the new charge.
Customers will be notified of the extra charges via an arrow below the restaurant name. The exact amount will appear above the menu, and as a separate line item before checkout and on the order receipt, the company says. It appears that the surge pricing will appear much like Uber’s previous ride-hailing charge, which the company dropped in favor of upfront pricing earlier this year.
The extra funds collected through the surge pricing will go toward “toward financial incentives for delivery partners as well as our other operational costs.”
“This is an important step to ensure the reliability of our network and continue to offer the same selection and speed UberEATS is known for,” Ben Dreier, Uber product manager for Uber, says in a statement.
by Ashlee Kieler via Consumerist