Uber Eats is launching its first ever advertising listing for restaurants, a paid platform restaurant can use to reach more customers amid the coronavirus pandemic, the delivery division of Uber Technologies Inc. announced Monday morning.
Understanding that paying for a new service is challenging during a pandemic, Uber Eats said it is earmarking $25 million in “marketing credits” so restaurant partners can try the new ad listing at no extra cost. Payment will kick in after each restaurant reaches a predetermined credit limit. The service is available to both independent restaurants and chains.
“We’re excited to use these credits to level the playing field, giving small businesses and enterprise partners the same ability to reach customers today when it matters more than ever,” the company said.
The delivery company could not provide an exact cost per restaurant, saying it varies because restaurants pay per click through to a restaurant’s menu.
“We’ve seen restaurants spend as little as a few dollars a week, but the average is about $50 for independent restaurants,” Uber Eats said.
One Miami restaurant said its delivery sales on Uber Eats tripled after testing the sponsored listing for free a few months ago. That prompted Moshi Moshi, a full service Japanese restaurant, to opt in to pay for the service when the trial was over.
“Oh my gosh. It has worked for us so well,” company representative Rachelli Rodriguez said.
Moshi Moshi owner Toshio Furihata said his three locations in South Florida have been using Uber Eats for three years and enjoy a loyal following. But the sponsored listing has elevated the brand’s profile even more because the brand appears at the top of the app when consumers search for sushi or any type of Asian or Japanese food.
For every $1 Moshi Moshi pays, the restaurant makes about $35 in orders.
Bobby Athanasakis, co-owner of eight Manny & Olga’s pizza restaurants in Washington D.C. and Maryland, said his restaurants are seeing delivery orders increase by 10% since using the paid listing.
Even when accounting for delivery commission fees, the service is still helping each brand’s bottom line, both restaurant owners said.
““It was worth it for us.It gave us more orders and more volume,” Athanasakis said, adding that he also uses the sponsored listing for a separate virtual chicken sandwich brand he runs out of his pizza restaurants.
The sponsored listing is “entirely independent” of how restaurants are listed on the Uber Eats app, often referred to by delivery operators as the marketplace. Restaurants pay a fee to be on the marketplace as part of their overall commission rate, which also includes fees for last-mile delivery.
Restaurants who use the sponsored listings will appear in a box at the top of the app.
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