Uber Eats offers NYC restaurants a break on fees — in threat to rival food deliverers

The food delivery wars are back on.

Just three weeks after its offer to buy Grubhub crumbled, Uber is going on the offensive with a plan to steal its former potential partner’s Big Apple clients, The Post has learned.

Starting on Tuesday, Uber’s food delivery arm, Uber Eats, began telling New York City eateries that it will waive marketing fees and all other non-delivery fees through Oct. 31 — a promotion that sources say could help Uber pick off Grubhub’s restaurant clients in its largest market of NYC.

“That’s a way to take share away from Grubhub,” one industry insider said, noting that the majority of Grubhub’s NYC customers tend to handle their own delivery and stand to pay zero commissions through October if they switch to Uber.

Uber will still charge a 15 percent commission for food deliveries. And since the vast majority of Uber Eats’ existing clients tend to rely on it for delivery, the promotion will only cost it about one-quarter of its total NYC revenues, sources said.

Big Apple restaurateurs say they could sorely use the savings, especially with sales having plummeted due to coronavirus lockdowns that have largely shuttered sit-down dining operations.

Dan Abrams, who operates JG Melon in the West Village and Sirenetta on the Upper West Side, told The Post he will start using Uber if it will indeed save him money.

“At this point, everything is a simple math equation about how I can save more money,” said Abrams, who has been using Grubhub and its Seamless unit for deliveries during the pandemic.

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Uber’s promotion is timed to coincide with a food delivery fee cap implemented earlier this month by the NYC City Council and the mayor to help alleviate costs for restaurants struggling to survive the coronavirus.

Source: New York Post

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