Uber Eats To Raise Commission Fees for Restaurants, Stores in July
Uber Eats, the largest delivery platform in Taiwan, has announced an increase in commission fees for its vendor partners starting in July, alongside a newly passed law for courier labor protection. But it’s left consumers worried about heftier bills.
REPORTER:
Delivery couriers weave through city streets to pick up lunch orders on a rainy day. But soon, some of these orders may cost restaurants and stores more.
Uber Eats, the largest food delivery platform in Taiwan, says it’s looking to raise commission fees for its vendor partners in July.
Restaurants will see a 2.5% increase, and stores will pay 3% more for each order.
Some restaurant owners are already worried.
Tea Shop Owner:
Their commission takes up over half of our gross profit.
2.5% might not sound like much
but when you look at a full month
that’s probably half an employee’s salary.
REPORTER:
And there are concerns about those increased costs being passed on to buyers.
VOXPOP (female):
I’m guessing [prices] will increase.
If the location is not very far
I’d probably go buy it in person.
VOXPOP (male):
If there are added costs on the orders
they’ll definitely be reflected in bills.
That's for certain.
I think consumers will have to think about
whether the higher prices matter to them.
There is a cost to going out to eat
and having food delivered to your door.
REPORTER:
The price hike will start alongside a newly passed law that offers basic protections for couriers working for these platforms.
Uber Eats says the hike will offset the costs from that law.
But some delivery workers say the law just gives an opportunity for the platform to shift the costs to someone else.
Su Po-hao (SPOKESPERSON, TAIWAN DELIVERY INDUSTRY RIGHTS ALLIANCE):
Every spring or fall
Uber often uses price hikes
for either consumers or restaurants
as a way to stress-test the market.
This year, they’ve found a convenient excuse
and that’s the new delivery regulation.
But to us, it’s just an excuse.
REPORTER:
With so many restaurants and stores working with delivery platforms, discussions over who should bear the cost of delivery will drag on.
