Uber Eats is getting rid of its $4.99 flat rate delivery fee in favor of a varying fee based on distance, according to CNET. Fees will be cheaper the closer the customer is to the restaurant, and more expensive the farther away they are. Uber’s “booking” fees now range from $2 to $8, and a sliding “Max Booking Fee” filter lets customers decide how much they want to pay.
Previously with the $4.99 flat fee, Uber Eats had been known to be slightly more expensive compared to other food-delivery apps like Seamless or Grubhub, in which delivery fees vary and are set by the restaurant. With this new move, Uber Eats is now able to compete by offering restaurants with lower, or in some cases, no delivery fees. Although, with surge pricing that could drive up costs during high-volume hours, other services might still be cheaper.
Uber Eats has been testing out the new fees in several US cities over the past couple of months, and the company reports that over half of all orders had booking fees that cost less than $4.99. The feature is now rolling out to all US cities starting today.