Uber Eats Launches $20 Million Program to Help Local Restaurants in U.S. Amid Pandemic
It is not something new to hear a food establishment closing out all because of the on-going pandemic. The effects of it are felt far and wide, and the most affected businesses were the independent restaurants. The government made efforts to aid the establishments, but more help is needed. This is why Uber Eats is stepping in.
According to Verdict FoodService, the food delivery giant decided to launch a program designed to aid independent restaurants during the pandemic season. The program is aptly named Eat Local, which is worth $20 million.
According to Business Wire, head of Uber Eats and Delivery for the U.S. & Canada, Stephane Ficaja, explained that the company is in full support of the restaurants since the pandemic's onset. The company is committing to aiding and remaining focused on their partners' success in the months ahead.
Uber Eats Launches Eat Local Support Package
As the Eat Local package instates, $4.5 million will be donated by Uber to the Local Initiatives Support Corporation (LISC). This amount will be distributed as financial assistance to restaurants across the country facing COVID-19-related challenges.
Additionally, reduction and waiving of fees will be implemented for restaurants that are using Uber Eats services. This means partner restaurants will be given zero percent for processing orders directly on their websites, zero percent for pickup, and $0 to receive daily payouts. The initiative will increase daily cash flow through July 2021.
Moreover, the program also offers reduced delivery fees for customers on all Uber Eats orders from independent U.S. restaurants. The package also includes dedicated marketing campaigns covering both in-app and via email to effectively promote delivery from local restaurants.
They also include the Restaurant Contribution feature in Uber Eats, which will cover Uber matching all consumer contributions to restaurants. Furthermore, the program will help expenses like rent, utilities, outstanding debts to vendors, and upgrading technology systems.
The program also entails additional benefits, which include extensions of previously announced programs for restaurants. This will allow them to receive daily payouts rather than the company's standard weekly payouts.
Eligible restaurants must be users of Uber Eats and Postmates platforms since Jan. 1 and should have less than five locations without any affiliations with a national brand. The application process for the Eat Local program opens on Feb. 16.
Feedback From The Food Industry
The Eat Local program by Uber Eats has been receiving praise for its continued efforts in helping local and independent food businesses.
President of USBC or U.S. Black Chambers Inc., Ron Busby, said that the organization applauds Uber Eats on its commitments to help small business owners who rely on its platform to reach customers. This is true especially for black-owned restaurants that have been disproportionately impacted by the pandemic.
Busby continued to express his gratitude as Uber Eats allowed their members to benefit from the $4.5 million grant program with the inclusion of waived fees.
Meanwhile, President & CEO of the National Restaurant Association, Tom Bené, also said that Uber's support emphasizes the importance of the entire restaurant and foodservice industry working hand-in-hand to advance the recovery efforts.
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