Uber Eats users in Washington, DC and Pennsylvania will now see a pop-up message on the app’s checkout page stating that the total cost of the food they’re about to order may be higher than the order in restaurants.

The Uber Eats app will also display a “Prices may be lower in store” disclosure after two attorneys general urged the company to be more transparent with its customers about pricing.

Uber Eats price transparency

According to Uber, the Uber Eats app already contains pricing information. However, Attorney General Josh Shapiro of Pennsylvania and Attorney General Karl Racine of Washington, DC, said the company’s disclosure was not enough and wanted them to be more transparent.

Attorney General Racine said in a statement on Attorney General Josh Shapiro’s report Web page that companies like Uber Eats need to be transparent about their prices and that getting food directly from a restaurant is often cheaper than having it delivered through a third-party app.

Read also: Uber Eats switches to main Uber app for faster food deliveries

Attorney General Racine added that this rule change is significant, especially now that more and more consumers are using apps like Uber Eats.

They are strongly encouraging other delivery apps to follow in Uber Eats’ footsteps and have warned that those who don’t take the change seriously will be investigated.

Attorneys General have concluded that consumers deserve clear information to make better decisions that work best for them.

Meanwhile, Uber issued a statement to Bloomberg indicating that the company and its partners set their own prices on Uber Eats.

A spokesperson for Uber said he felt it was important to give that kind of flexibility to their merchant partners, especially as the food industry recovered from the pandemic last year.

Food delivery platforms like Uber Eats, Grubhub, and DoorDash require customers to pay additional service fees. The platforms then charge restaurants a 30% commission.

Since the pandemic, restaurants have struggled to operate, with some having no choice but to increase the price of their dishes on food delivery apps just to offset the cost of commissions.

Food delivery costs

According to BBC, a meal delivery costs 23% more on an app than ordering directly from a restaurant. Restaurants set prices on food delivery apps and typically increase the price to cover the service fees charged.

The use of food delivery platforms has helped restaurants continue to operate as most of them have been forced to close their physical stores due to the pandemic, which did not allow them to dine.

Uber Eats has responded to the price hike by saying it is working to ensure that the best restaurants and the best selection of food are available to its customers, wherever they are. Whatever time of day.

The Attorney General understands that there are price differences between ordering directly from a restaurant and using a delivery app. The only solution they can come up with at this time is to be honest with customers about pricing.

Currently, only two states have ordered Uber Eats to make changes to the app, and it’s still unclear whether other states will follow suit.

Related article: Class action lawsuit filed against Grubhub, DoorDash and Uber Eats for charging “exorbitant” convenience fees due to the coronavirus pandemic

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Written by Sophie Webster

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