Wednesday, August 24, 2016

UberEats Delivery Service and Tips

Clients ordering food using UberEats rarely tip Uber drivers performing this delivery service. We noticed that Uber refuses to integrate a tipping feature in their apps. As a result of this holdout, clients assume tips are already included in their trip cost. Maybe Uber should add an automatic tip in trip totals, especially since clients believe they are tipping their drivers.

You know how annoying it is to hear clients tell their co-riders we don't have to tip the driver, Uber includes a tip in the trip cost. That is so inaccurate! Lyft drivers can receive tips from their riders. However, full-time Uber drivers lose thousands per year from Uber holding out on a tipping feature. 

UberEats operates the same exact way. It is customary to tip a delivery driver. An Uber driver who performs UberEats delivery services only received one $1 tip out of 100 deliveries. The Uber tipping game is so flawed that delivery drivers are getting the short end of the stick. 

Yeah, sure, UberEats is a profitable way to earn money. It is unprofitable to drive 22 minutes to retrieve one order, and then travel another 20-30 minutes to deliver this food to a client. On another delivery, the driver drove 15 minutes to restaurant, it took another 10 minutes to find parking and this driver traveled another 30 minutes to an Oakland public park to locate client. These types of deliveries block drivers from accomplishing their weekly bonuses. 

In a particular hour, some drivers only complete one trip and make less than $10. Uber is currently offering 1.5X surge pricing on all delivery orders completed between 11am-2pm and 5pm-9pm. Outside of these high peak hours, UberEats deliveries can either help or hurt hourly trip averages. 

Tell us how UberEats is helping drivers to increase their hourly earnings? 

The only reasonable way to view the benefits of UberEats is to consider that all food orders are counted as individual trips and this helps Uber drivers increase their hourly trip average to achieve weekly bonuses. Instead of driving 70-90 hours per week to earn the 120 trip bonus, drivers can scale back and work 50-60 hours to reach this 120 trip bonus. UberEats delivery orders also apply to 30, 50, 80 and 100 trip milestones. Drivers may find it beneficial to deliver food until the last restaurant closes at 12am. 

Delivering two orders on the same trip can work like UberPool. When UberPool is most efficient, we view this carpool service as far superior than UberEats. However, Uber drivers who perform UberEats deliveries have greater flexibility (use restroom and get gas) and less risk transporting food than people (no star rating system). UberPool, on the other hand, can continue on for 90 minutes and create some unwanted challenges with getting gas and using the restroom. 

As for UberEats and tipping, clients are stiffing their delivery drivers. We expect the majority of East Bay clients will not tip their Uber delivery drivers. What these clients don't see all the work that goes into preparing, retrieving and delivering these food items to destinations. 

Uber can step in and add a minimum tip into these delivery orders. If clients assume tips are already included, then help out your drivers with adding these tips into the trip cost.

If you can, please be courteous and tip your UberEats delivery drivers.