Uber and Toast Team to Offer Commission-Free Delivery

Uber is expanding its partnership with restaurant technology platform Toast.

The new integration between Toast Delivery Services and Uber Direct lets U.S. restaurants save on delivery fees and expand their delivery radius, while using Uber’s delivery network to provide local delivery on phone orders and ones made via Toast digital ordering channels, the companies said in a Thursday (Dec. 5) news release,.

This effort builds on the partnership formed by two companies in 2021, and comes at a time when restaurants are struggling to attract diners and find funding.

“In addition to providing restaurants with more choice, this expanded integration with Toast will enable restaurants to access commission-free delivery for a low flat fee per order,” the companies said in the release.

“Uber Direct is now available on Toast Delivery Services for customers to fulfill deliveries of orders made by phone and through Toast digital ordering channels.”

Brandi Villarreal, head of online food delivery at Uber Direct, said the company was seeing restaurants listed on Uber Eats also connect to Uber Direct through providers 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,” she said.

“At the same time they can continue to also maximize orders and their ability to acquire new customers ordering via Uber Eats.”

The expanded partnership comes in the closing weeks of a year that has not been kind to the restaurant sector.

“I don’t know about you guys, but I’m ready for ’24 to be behind us, and I think ’25 is going to be a great year,” Kate Jaspon, chief financial officer of Dunkin’ parent company Inspire Brands, said at an industry conference in Las Vegas last month.

Her comments were reported by CNBC, which also noted that bankruptcies in the restaurant sector have shot up by 50% this year over 2023. Restaurant traffic for establishments open at least a year had decreased year over year in each month through September, according to data from industry tracker Black Box Intelligence.

Meanwhile, high-profile eateries such as McDonald’s and Starbucks have reported declines in quarterly sales, disappointing their investors.

And while global chains like these are seeing sales slip, smaller restaurants face challenges of their own, such as finding capital, Mitchell Hipp, divisional vice president at Rewards Network, said in an interview earlier this week.

“Between the Small Business Administration and banks, not a lot of them want to talk to you,” Hipp told PYMNTS.