April 30, 2025
We get it—your customers are shocked when that $12 burger turns into a $20 order at checkout. And when that surprise hits too often, they start to blame the restaurant, not the app. Third-party platforms like Uber Eats promise reach and convenience, but for your customers, it can feel like an endless stream of hidden fees.
Recent studies indicate that meals ordered through delivery apps like Uber Eats and DoorDash can be up to 38% more expensive than dining in at the same restaurant. This price increase is primarily due to a combination of service charges, inflated menu markups, and delivery fees.
For instance, a McDonald's Quarter Pounder with Cheese meal, which costs $10.19 in-store, is priced at $14.09 on Uber Eats, excluding delivery fees, taxes, and tips. While platforms like Uber Eats can expand a restaurant’s reach, they may also impact brand experience and profit margins.
In this article, you will explore why Uber Eats is more expensive than restaurants, how Uber’s commission structure plays a major role, and what pricing strategies you can use to stay competitive without sacrificing quality or profits.
Let’s start with the most obvious yet often misunderstood factor: App Commission Fees.
The prices your customers see on Uber Eats aren’t just about the food they’re the result of everything happening behind the scenes. From steep commissions to platform-imposed markups, there's a chain of costs that eats into your margins—and shapes the final price your customer sees.
Uber Eats typically takes 15% to 30% per order in commission fees. If you’re sending out a $25 meal and paying 30%, that’s $7.50 gone right away. Add the average 60% operating cost, and you’re left with maybe $2.50 profit. It’s not enough to sustain a team, cover rent, or grow.
That’s why restaurants like yours raise prices on the platform. It’s not about overcharging, it’s about covering basic costs.
Uber Eats recommends a 10–15% price increase for restaurants to “balance” the commission cut. But the math rarely works out. To break even or turn a small profit, many restaurants go higher, up to a 20% markup, just to keep the delivery channel viable.
Uber Eats doesn’t just charge commission—it also applies dynamic pricing. Factors like time of day, location, user profile, and even device type. For customers, this could mean higher prices during peak hours, such as lunch or dinner rush, or special events, which may cause fluctuations in their charges. You might offer the same meal at the same price, but customers see different totals based on fluctuating app-side fees.
If you’ve synced your in-store inventory with Uber Eats, the platform requires markup percentages to cover listing and operational costs. According to Uber’s Pricing Markup FAQs, this is part of staying visible and available in search results and categories.
These are some of the steps restaurants have to take to make a profit, which results in expensive food for customers.
With global food delivery expected to reach $185 billion by 2029 (Statista), the market is set to expand. But can you uncover the reason why your delivery prices end up being higher than those for dine-in?
It starts with the Marketplace plan you choose on Uber Eats. Each plan offers a different level of visibility, but it comes with a cost, and that cost directly affects how much you need to charge to protect your margins.
Here’s how the plans break down:
This is for restaurants that already have a strong local following and just want to be visible when customers search by name.
The Plus plan gives you broader exposure and access to Uber One perks but with higher fees.
This is Uber’s top-tier plan for restaurants wanting the most exposure—featured placements, top search spots, and promotions.
If you have your own delivery team, this plan allows you to manage logistics in-house and reduce fees.
We understand how these commission fees can be overwhelming. iOrders is a great solution for restaurants like yours that are looking to take back control of their margins and customer relationships. It offers commission-free online ordering, helping you avoid losing up to 30% of each sale to third-party apps. This provides your customers with a better ordering experience, directly from you.
You'll get updated menus in real-time, customize pricing, suggest add-ons, and build loyalty with rewards all while owning your customer data.
🧩 Comparison Table: Uber Eats vs iOrders for Restaurant Owners
This side-by-side comparison highlights what many restaurant owners are realizing: third-party platforms may offer exposure, but they come with costs both financial and relational. iOrders flips that model by giving you tools to grow without losing control over your revenue or your brand.
With commission fees eating into your margins and operational costs rising, setting prices on Uber Eats isn’t just a business decision—it’s a survival move. If you’re wondering how to price your menu without driving away loyal customers or losing money on every delivery, you’re not alone.
Here are a few smart strategies restaurants are using to stay in the game:
Many restaurants now maintain two versions of their menu: one for in-house and another for delivery apps. The delivery menu includes a markup, usually 10–25% higher, to cover commissions and platform fees without reducing profits.
Cut underperforming or labor-intensive items from your delivery menu. Focus on bestsellers with strong profit margins and easy prep. This keeps operations smooth and maximizes earnings per order.
Create combo deals or meal bundles that offer perceived value while giving you better control over margins. For example, pairing a high-margin item with a popular low-margin one can help balance the books.
Encourage customers to opt for pickup by offering exclusive deals or discounts. With only a 10% fee for pickup orders, this channel keeps more money in your pocket and often builds stronger customer relationships.
Larger or fast-growing restaurants may have room to negotiate better rates with Uber Eats, especially if you're part of a chain or collective. Don’t be afraid to explore these options if you're bringing volume to the table.
If possible, promote your own ordering system (through your website or tools like iOrders). Direct orders cut out the middleman entirely—no commissions, full control, and better margins. Even shifting a small percentage of orders off the app can make a real difference over time.
In addition to implementing a smart strategy, opting for a better option like iOrders allows you to offer delivery-as-a-service with no commission, directly through your own platforms. Let customers order straight from your site or app, choose how they want to pay, and enjoy the same seamless experience they expect from third-party apps minus the fees.
As delivery prices climb, customers are finding their own ways to cut costs while still supporting their favorite restaurants. Here’s how many are navigating the new normal:
More customers are skipping third-party apps altogether and placing orders directly through restaurant websites or in-house apps.
Not only does this often lead to lower prices, but it also helps local spots avoid hefty commission fees. It’s a win-win—better value for the customer and more profit for the restaurant.
With delivery fees, service charges, and tips adding up quickly, many diners are opting to pick up their orders instead.
This experience avoids the extra 20–30% that often comes with delivery. For customers, it’s a simple shift that saves money. For restaurants, it means more control and higher margins.
With more and more customers choosing to order directly and picking up themselves to save their money, it’s the perfect time to turn these customers into loyal ones. With iOrders' built-in Loyalty and Rewards tools, you can offer tailored rewards, create custom offers, and run referral programs. This will help target these customers who are currently in savings mode.
With iOrders, you get to manage everything from one place—whether it’s a personalized discount for a regular guest or an incentive to bring in new customers. iOrders helps you do more than just fulfill orders, it enables you to build a base of loyal customers who keep coming back and bringing others with them.
As customers grow more aware of hidden charges and inflated menu prices, the call for pricing transparency is getting louder, and lawmakers are starting to take notice.
On a provincial level, British Columbia has implemented Canada's first permanent cap on delivery fees charged to restaurants by food delivery companies. Effective January 1, 2023, the Food Delivery Service Fee Act limits these fees to no more than 20% of the order's value.
Several states in the U.S. are considering legal actions that would require third-party delivery apps to clearly disclose price differences between in-store and app-based ordering.
The aim is simple: let customers see what they’re really paying for and where that money is going. If passed, these measures could reshape how platforms like Uber Eats display pricing and fees.
There is an ongoing debate about whether current pricing models are fair to both restaurants and customers. Is it right that the same meal can cost 20–90% more depending on how it's ordered?
Many argue that a lack of transparency makes it hard for customers to make informed choices and puts independent restaurants at a disadvantage, especially when they are forced to inflate prices just to stay profitable.
With customers getting more aware of the hidden fees, and lawmakers taking necessary steps. Now is the time for you also to take action and choose a platform that doesn't have any hidden fees. iOrders' commission-less model makes it a restaurant-friendly platform.
Its Smart Campaigns will help you stay visible, build trust, and guide your guests to order directly from you. Use targeted digital tools to reach customers where they are—on social, email, or mobile and keep them coming back with personalized offers and timely reminders.
While platforms like Uber Eats bring exposure and convenience, they also come with heavy trade-offs, especially for independent restaurants. The commission fees alone, which can reach up to 30%, eat straight into already thin margins.
For every $20 order, you could be spending $6 just to list and deliver it. Add in rising food costs, labor, rent, and inflation, and it becomes clear that staying profitable while relying heavily on third-party apps is a tightrope walk.
Worse, many restaurants feel like they’ve lost control of pricing, branding, customer relationships, and even how their food is experienced. With apps inserting themselves between you and your guests, the personal connection you build in-house doesn’t always translate online.
Shifting just a portion of your traffic to commission-free online ordering platforms like iOrders can make a real difference. You'll keep more of every sale, own your customer data, and control the entire experience from menu updates to loyalty rewards.
Pair this with direct delivery options and smart marketing tools, and you can create a sustainable digital presence that builds repeat business, not just one-time clicks. Uber Eats might help you discover, but your long-term growth lives in the relationships you own—and the margins you protect.
Let’s now wrap up what you learned in this article. As the world of online ordering continues to evolve, one thing is clear: restaurants need to adapt without losing what makes them unique.
The real reason Uber Eats is more expensive than restaurants is not just because of the delivery—it’s about the hidden costs buried beneath every tap and click. Between steep commissions, dynamic pricing, marketplace plan fees, and required markups, restaurants are left with little choice but to raise prices just to stay afloat. The result? Diners end up paying more for the same meal, and restaurants lose control of their margins and relationships. So what is the solution?
A modern restaurant like yours requires modern solutions.
With iOrders, you don’t just manage orders—you create a branded experience that customers remember and return to. From a white-label mobile app and commission-free delivery options to loyalty tools, AI-powered review management, and data-driven marketing services, iOrders is the complete system built for restaurants ready to grow on their terms.
Take the guesswork out of online operations.
Take back your margins.
And take your customer's experience to the next level.
Let iOrders help you make every online order count. Reach out today!
