Uber is adding surge pricing to its UberEATS food delivery service
The news was announced by Uber product manager Ben Dreier in a company blog post on Thursday.
"We're asking UberEats customers in select cities to pay more for delivery when they order from restaurants in areas where demand is high but delivery partners are scarce," wrote Dreier.In terms of how the new pricing will work, Dreier said "An arrow below the restaurant name will notify users about the additional fee. The exact amount appears above the menu, and as a separate line item before checkout and on the order receipt."
The extra money from the orders will go towards "financial incentives for delivery partners" and other "operational costs," Derier said.
"This is an important step to ensure the reliability of our network and continue to offer the same selection and speed UberEats is known for," said Derier. "As always, we'll be listening to feedback and working on additional improvements in the coming weeks and months. It's all part of our commitment to create a delivery network that meets the unique needs of every city we serve."
The first cities to see surge pricing for their UberEats deliveries are Phoenix, Houston, Dallas, DC, Miami, and Atlanta, according to The Verge.
UberEats has been rolled out to 43 cities worldwide, including London, where it launched in June.
An UberEats spokesman told Business Insider there is "no date or plan as yet" to bring the surge pricing to UberEats in London.Since arriving in London the company has gone to great lengths in order to steal customers and riders from rivals like Deliveroo and the now-closed Take Eat Easy.