How Toast and Uber Are Changing the Delivery Game

Commission-Free Delivery? Toast and Uber Bring Delicious Solutions to Diners

Boston, MA and San Francisco, CA—Toast (NYSE: TOST), the all-in-one technology platform designed for restaurants, and Uber Technologies, Inc. (NYSE: UBER) are thrilled to announce an expanded partnership. This partnership will provide restaurants with a wider range of options and their guests with additional options for obtaining their favorite foods directly to their doorsteps. Additionally, it will assist restaurants in reducing costs and expanding their reach.

Restaurants throughout the United States will be able to offer local delivery of orders placed by phone and through Toast digital ordering channels, including Online Ordering, Branded Mobile App, and the Local by Toast (formerly Toast TakeOut) app, by leveraging Uber’s extensive delivery network, expanding their delivery radius, and saving on delivery fees through the new integration between Toast Delivery Services and Uber Direct. Toast and Uber have been collaborating since 2021 to provide orders placed through the Uber Eats app in a seamless manner.

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Customers of Uber Direct and Toast are currently experiencing advantages as a result of this collaboration. Over Easy, a brunch concept that is expanding with 16 locations in Arizona, has been utilizing the integration to enhance the hospitality experience for both guests and staff.

Uber Direct allows businesses to leverage Uber’s delivery technology and network to provide local delivery for sales made through their Toast digital ordering channels and by phone, in addition to assisting restaurants in generating demand and attracting new customers through the Uber Eats app. Restaurants, grocers, convenience stores, retailers, and other entities utilize Uber Direct. In addition to offering restaurants a wider selection, this expanded integration with Toast will allow them to access commission-free delivery for a low fixed fee per order. Uber Direct is now accessible on Toast Delivery Services, enabling customers to fulfill deliveries of orders placed via Toast digital ordering channels and by phone.

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Industry Comments

“To stay competitive and provide consumers with a frictionless experience, restaurants are increasingly looking to meet customers where and when they want,” said Brandi Villarreal, Head of Online Food Delivery at Uber Direct. “

We’re seeing restaurants who are listed on Uber Eats also partner with us on Uber Direct through a provider like Toast. They know from experience Uber Eats offers a reliable and speedy delivery experience, so why not utilize Uber Direct to also fulfill delivery requests from guests who order through their website, app, or other restaurant owned channels. At the same time they can continue to also maximize orders and their ability to acquire new customers ordering via Uber Eats.”

“Uber Direct for Toast Delivery Services has been a great addition to our delivery platform. It allows customers to order through our website, keeps delivery prices down, and offers speedy convenient service. We love the seamless integration,” said Brian Terpay, COO of Over Easy

“We are thrilled to expand our partnership with Uber, and delighted to offer restaurants Uber Direct via Toast Delivery Services with fast and reliable local delivery support through our customers’ Toast-powered online ordering channels,” said Kelly Esten, Chief Marketing Officer at Toast. “Partnering with Uber Direct will help restaurants maximize their margins with commission-free deliveries and reach more guests. We are excited to offer these new benefits to restaurants across the United States.”

FAQs

What is the benefit of using Uber Direct with Toast for restaurants?
Uber Direct allows restaurants to provide local deliveries through Uber’s delivery network while avoiding commission fees. This enables restaurants to offer competitive delivery services at a low fixed fee per order, helping them maximize their margins.
How does the Toast and Uber partnership affect delivery prices for restaurants?
The integration with Uber Direct allows restaurants to offer commission-free delivery, reducing the delivery fees they typically incur. Restaurants will only pay a low fixed fee per order, helping them lower overall delivery costs.
Can restaurants use Uber Direct for both orders placed through Uber Eats and their own platforms?
Yes, restaurants can use Uber Direct to fulfill delivery requests from customers who order through Toast’s digital channels (like their website, app, or Local by Toast) as well as those who order via Uber Eats. This offers flexibility and wider reach for restaurant owners.
Are there any examples of restaurants benefiting from this integration?
Yes, Over Easy, a brunch chain with locations in Arizona, is already benefiting from the integration. They’ve experienced better delivery service, keeping prices down while offering a speedy, convenient option for customers.

Conclusion

The expanded partnership between Toast and Uber is a significant step forward in providing restaurants with more efficient and cost-effective delivery solutions. By eliminating commission fees and utilizing Uber’s extensive delivery network, restaurants can increase their reach, reduce operational costs, and offer a superior experience to their customers. This collaboration benefits both restaurant owners and diners, making it easier to enjoy great food while ensuring restaurant profitability.

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