Toast announced on Thursday that it is expanding its partnership with Uber by making Uber Eats Direct the primary white-label delivery option for businesses using Toast’s services.
As part of this change, Toast is shifting away from its previous default partner, DoorDash Drive, however, businesses will still have the option to continue using DoorDash Drive if they prefer.
Toast is offering lower delivery fees for restaurants via Uber Eats DIrect.
According to Toast, this transition will help restaurants reduce delivery fees, expand their delivery zones, and leverage Uber’s extensive delivery network. This builds on the two companies’ partnership that began in 2021.
If a restaurant opts for this integration, orders placed through its Toast-powered website or app will be routed to Uber for fulfillment. Restaurants pay a flat fee of $6.99 per order, compared to the $7.49 fee that DoorDash charges.
While the fee for Uber Direct is slightly lower, it’s worth noting that DoorDash covers a larger service area and leads the third-party delivery market share in the U.S. Still, the new integration with Uber Direct highlights the growing competitiveness of the third-party delivery market, as restaurants look for the most cost-effective and efficient options.
Kelly Esten, Chief Marketing Officer at Toast, said, “Partnering with Uber Direct will help restaurants maximize their margins with commission-free deliveries and reach more guests.”
Brandi Villarreal, Head of Online Food Delivery at Uber Direct, added, “To stay competitive and provide consumers with a frictionless experience, restaurants are increasingly looking to meet customers where and when they want. We’re seeing many restaurants listed on Uber Eats also partner with us on Uber Direct through providers like Toast.”
Currently, more than 127,000 restaurants utilize Toast’s technology to manage their online ordering and delivery services.
