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Retailers threaten to ditch Uber Eats a er sales losses

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INSIGHT OPINION

INSIGHT OPINION

Alex Yau

RETAILERS have threatened to boycott home delivery giant Uber Eats, after the �irm’s latest string of forced changes led to hundreds of pounds in weekly sales being lost.

In June, the �irm implemented store-wide reviews of menus designed to improve customer navigation through its service. This included the removal of product lines that had been duplicated across different categories, and separating categories into different menus. Uber piloted this in several stores prior to a wider rollout, and claimed the trial had led to sales nearly tripling in some branches.

However, the changes were forced on some stores without any warning provided to the owners. One affected Nisa owner, who asked not to be named, told Retail Express this had caused them to lose several hundreds of pounds in weekly sales over several weeks.

More than 200 products were deleted, which included core lines such as alcohol, pasta, hot food to go and curry sauces. Speci�ic brands impacted included Tango Ice Blast, Stella Artois, Dr Pepper, Kopparberg, Asahi and Co-op own label. The removals also meant the retailer was unable to run popular promotions, including sandwich meal deals and slushies/popcorn combinations.

The retailer said: “I noticed the issues when I checked my menu, but I otherwise was given no notice. I contacted Uber Eats constantly to get an answer, but they were completely ignoring me. One time I was getting nowhere over the phone, as I kept being told to look at my emails instead. None of our products were duplicated, as they claimed.

“You’re never going to win with Uber Eats and we threatened to move our business elsewhere if improvements weren’t made.

“The service levels from other home delivery providers, such as Just Eat and Deliveroo, are getting sharper, but Uber Eats seems to be getting worse. They’re in the dark ages with the way they ask you to manage your business on the system. It’s not just our sales that have been impacted by the deletions, but also our time. Adding more than 200 products to our menu took over three hours of work. That’s massive. Uber is not accepting any liability. It’s just pure arrogance.”

Two other store owners con�irmed to Retail Express that the changes had impacted their business. One of the affected retailers said the review required them to increase staf�ing hours to accommodate the alterations, and said: “All of this is costing us time on our rota at a considerable cost for some- thing we didn’t ask for.”

The retailers said their symbol groups had stepped in to assist with the issues, but were also unsuccessful in getting Uber Eats to correct the changes.

Retail Express understands the �irm has since re-added the products to the Nisa retailer’s menu following ongoing pressure. However, the �irm accused the store owner of unprofessional conduct during its communication with them. The retailer, who has their own paper trail of communication, has demanded Uber Eats provides evidence to back up its accusations.

“I’ve been impacted by Uber’s actions, and can’t accept these allegations,” they added.

These changes are the latest in an ongoing battle between Uber Eats and independent retailers. Earlier this year, the �irm removed vape lines from the menus of small shops, despite store owners being able to provide proof they were compliant.

The delivery �irm said the decision was to prevent illicit sellers from stocking dodgy vapes. Meanwhile, supermarkets were being allowed to stock vapes, giving them a competitive advantage over nearby small shops.

Uber Eats failed to comment as Retail Express went to print.

How are you supporting customers who are on tighter incomes?

“WE have an initiative in the store where we’re donating £1,000 to 20 families to help fund school uniforms. It’s a challenging time, and we understand it can be di cult to pay for certain essentials. A lot of promotions are being run on products such as 2l Coca-Cola and Heinz Beans for 55p. The customer feedback has been brilliant and our turnover has remained the same as it was at the peak of Covid, so we’re doing something right.”

Mike Sohal, Dallam Stores, Warrington

“HELPING customers who are on tighter incomes is something we’ve been doing for a long time, so we’re used to it. We started a pay-it-forward board in January, where customers can help pay for a bottle of milk, sugar or other essentials for other shoppers. We also focus on own label and position Euro Shopper at the front of the shop. It’s doing really well for us as Euro Shopper beans are 59p, nearly £1 cheaper than Heinz.”

Serge Notay, Notay’s Convenience Store, Batley

“WE’RE trying to make sure we keep a range of stock at entry level prices in every single category in the store. These include own-label brands such as Euro Shopper and Lifestyle. All these have core products such as baked beans, chocolate and toilet roll at a more a ordable price. You have to cater for di erent levels of income. Despite the cheaper price, these products are actually decent quality and customers do end up realising this.”

Ken Singh, BB Nevison Superstore, Pontefract

issue to discuss with other retailers? Call 020 7689 3358 or email alex.yau@newtrade.co.uk

COMMERCIAL PROPERTY: An average of 14 o ers were made on convenience stores put on sale in the rst half of this year, according to commercial property expert Christie & Co. The rm’s retail and leisure managing director, Steve Rodell, said: “We expect the second half of 2023 to be as strong, if not stronger, than the rst half.”

MAGAZINES: A premium retail concept combining co ee to go and premium magazines in a tuk-tuk is seeking franchisees. Spanish brand News & Co ee has struck a partnership with magazine distributor Ra & Olly for the opportunity. Tuk-tuks and kiosks are already trading across three sites in London.

For the full story, go to betterretailing.com and search ‘magazines’

Good Week Bad Week

LOYALTY: Retailer rewards app MyStore+ has closed, with stores given less than two weeks to claim funds owed. The app, which paid retailers for taking photos of planogramcompliant xtures, closed this month. However, messages sent to stores at the end of July gave them a deadline of 6 August to ensure payment details were correct for nal payout.

For the full story, go to betterretailing.com and search ‘MyStore’

DAIRY: Retailers have had milk deliveries cancelled following the introduction of Ultra Low Emission Zones. The zones charge drivers for entering areas if their vehicles do not meet emissions standards. Newcastle introduced a £12.50 charge, a ecting retailer Neeraj Bedi, as his dairy supplier said it was no longer cost-e ective to supply his shop. Another store in Birmingham was similarly a ected.

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