Zoe Do, the restaurant’s manager, said Uber Eats does not reduce its commission when applying “Buy 1, Get 1 Free” deals, charging restaurants a service fee based on the total price despite their reduced profit.
“In one case, we were included in a campaign without our consent or knowledge, and we’re still waiting for an explanation from Uber Eats regarding how this occurred.”
In a statement to NZ Herald, an Uber New Zealand spokesperson said the service’s costs are a choice users agree to.
“Restaurants have full control over their pricing on Uber Eats, reflecting factors like ingredient costs, supply chain pressures and daily operating expenses.”
They say service fees are as low as 6% for pick up and as high as 30% for delivery.
“These options give restaurants across Aotearoa flexibility and control over what works best for their business.”
But Do said the app’s service fees don’t include GST, advertising, or promotions – all of which hit small businesses hard.
In order to “offset the platform’s high fees,” Lixiri charges Uber Eats customers slightly more than in-store prices – but nothing above a 15% increase.
“We try to keep the price difference minimal while staying sustainable.”
Uber argues that restaurants benefit from exposure, citing the company’s 2024 Economic Impact Report.
They claim that 70% of the app’s customers found new restaurants on the app, with a further 58% going on to dine in person.
But Do is encouraging customers to go direct to local restaurants.
“We completely understand that life is busy and that delivery apps offer convenience”, she said.
She suggests customers should consider ordering online or through the phone where eateries offer that option.
“This helps you avoid hidden fees and allows us to keep more of the revenue – which goes right back into making better food and service for our community.”
