When people use food delivery services like Uber Eats, they understand that they might have to pay extra charges for the convenience of not having to go out to the restaurant.
One of these charges is the service fee, but it’s not always clear what it’s for or where it goes. For anyone with these questions, we looked into what the service fee on Uber Eats is, and here’s what we found!
What Is Uber Eats Service Fee In 2023?
Uber Eats’ service fee is a charge placed on every order. When Uber Eats first launched, it charged a booking fee, but this was later split into the delivery and service fees. Service fees on Uber Eats vary depending on where you are and the size of your order, but they’re usually between 5% and 15% of the order subtotal in 2023.
Continue reading to find out everything you need to know about the service fees on Uber Eats, including where they go, whether or not you can avoid them, and more!
Where Do Uber Eats Service Fees Go?
Uber Eats service fees go towards covering costs such as third-party fees, support, and more, i.e. they facilitate the actual service.
Service fees are separate from delivery fees and tips because they are primarily intended to be used for more of the background aspects of operations.
Therefore, they neither go towards the restaurants nor the drivers.
One of the easiest ways to illustrate what service fees are for is to look at the payment processors available on Uber Eats.
These include things like Paypal, Mastercard, Visa, American Express, and more, all of which charge a fee for every transaction, and that’s covered in the service fees.
How Is the Uber Eats Service Fee Calculated?
Uber Eats calculates the service fee by charging a percentage on the subtotal of the order you’re placing.
What exact percentage you have to pay isn’t always clear, but it varies from 5% to as high as 15% of your order subtotal.
Uber Eats also charges a minimum of $3 as a service fee, so even if the actual percentage is lower because your order is small, you’ll still end up paying more.
Why Are Uber Eats Service Fees So High?
There are several different reasons why Uber Eats’ service fees are so high, including the following:
- Inflation – these fees are high because the prices of everything that goes into making the service run are more expensive now than when it was launched
- You live in an expensive area – if you’re placing an order in a city where the cost of living is already very high, then the service fees will reflect this because they’re just a percentage of the value of your order
- Surge pricing – since the service charge is a subtotal of your order, including the delivery fees that are subject to surge pricing, it could be higher than usual depending on when you order
Should I Tip If I Pay the Uber Eats Service Fee?
Uber Eats’ service fees do not go to the drivers like the tips do, and you should make your decision with this in mind.
No matter how high the service fee comes out, the drivers only get paid through the tips and a portion of the delivery fees.
We recommend leaving a tip because 100% of it goes to the drivers and it helps your order get picked up faster while reducing the chances that a driver will mess with your food.
Does Uber Eats Charge Service Fees for Pickup?
Uber Eats charges service fees for pickup, but they’re lower in this instance because the subtotal from which they’re calculated does not include delivery fees.
How Do I Get No Service Fees With Uber Eats?
Unfortunately, you can’t avoid service fees when you use Uber Eats because they’re intended as a charge for using the platform regardless of what you get.
As we’ve explained above, these charges cater for things like transaction fees that go towards payment processors, so you have to pay them.
If you’re more interested in saving money on Uber Eats rather than avoiding the service fees, you could look into the following options:
- Look for promotions, offers, and discounts. These usually come straight from the app, but you could look through your email inbox or find reliable third-party promo websites for codes
- If you order regularly, place a large order and get your usual items at once, then store them for when they’re needed
- Subscribe to Eats Pass for $9.99 a month to get free delivery on orders above $15
- If you’re a new customer, you might qualify for free delivery on your first 5 orders
- Use pickup for restaurants that are close to you to avoid delivery fees
- Get your friends to join via your referral code for rewards such as discounts and credit
How Many Fees Does Uber Eats Have?
Aside from the money you pay for your food and an optional tip, Uber Eats also has the following charges:
- Service fee – this is intended to cover your usage of the core service and goes towards things like transaction fees. It’s usually between 5% and 15% of your order subtotal
- Delivery fee – this goes towards getting your order to your location and a portion of it is all that’s used to pay the driver if you don’t leave a tip
- Small order fee – this applies when your order is worth less than a threshold as determined by the restaurant you’re ordering from
To know more, you can also read our posts on Uber Connect, Uber Fleet, and Uber X.
On Uber Eats, the service fee is a mandatory charge for using the platform that’s separate from delivery fees and tips. It’s intended for things like transaction fees imposed by payment processors; it doesn’t go to the restaurants or drivers.
Service fees on Uber Eats are calculated as a percentage of your order subtotal, usually between 5% and 15%. Uber Eats has a maximum and minimum amount that can be charged as a service fee that varies between locations.