Should you sign-up for UberEats?
There is a simple co-relation between how established a restaurant is, to if the restaurant can gain or loose by listing on UberEats
UberEats is disrupting the restaurant industry and most often restaurants sign-up because every other restaurant is on the platform. It sounds as if there is is no choice for the participating restaurant as to whether they would be like to be on the platform.
One of the primary reasons restaurants use to convince themselves to sign up for UberEats is that they are looking to grow their business by acquiring new customers via. Uber.
This is far from truth, because once they’re on the platform a lot of them realise that they are actually losing their existing customer to Uber. This is extremely concerning because the reason they signed up for is basically to increase customers but essentially then end up loosing them.
This is where I would like to bring up the correlation between the how established your restaurant is — to whether you should sign up for UberEats.
I would like to categorise restaurants into the following groups:
You are a new, you are obviously trying to establish yourself. I think it is a great idea to list yourself on UberEats, because you could tap into the existing users of the platform and use it as an advantage for you to get the word out and grow your business. But be sure to have a solid strategy to reduce the high commissions charged by UberEats, otherwise you cannot sustain your business.
If you are a restaurant that is constantly growing month on month, then whatever marketing strategy your following is actually working. Perhaps you may not even have a marketing strategy and it could be the great word of mouth that you’re getting which is actually driving more more people to try your food. By all means if you are on a growth trajectory then, I would recommend you continue doing what you’re doing now and simply ignore Uber. I know it’s tempting to accelerate your already growing business using Uber, but think twice. On the other hand it is a great time to build your first-party ordering channel, that will let you build your customer database.
If you are an established restaurant, then for sure you have been operating for many years in the area and you should definitely be having a lot of regulars visiting your place or ordering with you. In this case, there is absolutely no need for you to sign up with UberEats and pay huge commissions, while risking the chance of losing your existing customers to Uber.
UberEats need a lot of established restaurants because it is those places that actually drive a lot of traffic to the platform, Uber has a lot to gain by listing you on the platform compared to what you could gain by listening yourself on Uber.
So be mindful of how established your restaurant is at the moment and make sure you make the right decision when it comes to whether or not you are willing to share your customers with the platform. Finally don’t fall into the trap trap of believing that you could increase your audience just by signing-up for UberEats, because at the end of the day the platform would simply grab your existing audience, turn around and charge you for sending a few of them back.
Either ways, high commissions are unsustainable — say no to commissions today
A wise move for new and growing restaurants is to build their own audience rather than relying upon platforms to create traffic. Checkout how you can setup online ordering for your restaurant for free and build your own community.