Drivers on the move in Halifax
Uber makes unconventional return with food delivery
Uber, the ride sharing company, pulled out of the Halifax market a couple of years ago after being met with resistance from city hall and the existing taxicab sector.
Now, after some time away, Uber is returning to the Nova Scotia capital although it isn’t as a ride sharing operation. This time an offshoot of the original Uber ride sharing business, Uber Eats, will have its drivers delivering food in a 100-kilometre-square area in Halifax-Dartmouth.
In an interview, Simon Brown, Uber Eats general manager for Eastern Canada, said the company will be offering its delivery service from 10 a.m. to 10 p.m. but, depending upon demand, it could be expanded to offer food delivery 24-7 as it does in many other communities.
Thursday was a special day for the organization, Brown says, as it expanded to 30 Canadian cities in a single day, including Halifax.
Uber’s food delivery business was introduced to Canada about two-and-a-half-years ago and it has an objective of serving about 100 communities by the end of the year, he says.
Already, the company has about 100 independent contractors signed up to deliver for Uber Eats in Halifax and Dartmouth, although the number fluctuates. Brown says the drivers are screened by the company.
In Montreal, where he is based, Brown says each driver must pass a medical test, driver exam and operate a newer vehicle.
The company has 70 restaurants signed up for the service in Halifax-Dartmouth and he expects that number will grow quickly as the market grows.
Most of the drivers are people who already have jobs and decide to deliver for Uber Eats to make some extra money.
“If they choose to work, they can just lock onto the app. They could do as many hours as they want … as they choose.”
They get paid on a weekly basis, traditionally a portion of the trip is paid when they pick up an order at a restaurant, then per kilometres that they drive and then a drop-off fee.
“Those amounts vary based on which part of the city that they’re in. We have kind of a system to help people understand where it’s busiest. If you’re in a certain part of town, those rates will go up. Similarly, time of day, so we try to balance supply and demand,” said Brown.
On average, he says the cost per delivery is between $8 to $15 depending on the various factors.
Until the end of October, Uber Eats is waiving the delivery fee.
The customer will be able to track their delivery using the Uber Eats app, Brown says, with the typical delivery time of about 30 minutes.
It is a data-driven company, he says, as Uber Eats is constantly getting feedback from the restaurants, customers and drivers.
The more the customer uses the app, Brown says, it will become a personalized experience based on previous orders. That will mean a customer’s favourite restaurants will be at the top of the list for them, and a different set of restaurants will be presented front and centre for others based on their preferences.
Although it’s getting a lot of attention by entering the local market, Uber Eats already has competition from another delivery app — Skip The Dishes — and the many restaurants that have their own delivery system.
Brown says he’s not worried because Uber Eats has experience working with restaurants that supply their own delivery. Most find that Uber Eats provides incremental business for them, he says. In most cases, the sales restaurants get through Uber Eats are 90 per cent incremental.
Uber Eats is paid based on a portion of the delivery fee, a “dynamic booking fee” based on the distance the food delivery must travel to a maximum of $7, and the other part is commissions on the restaurant side.