Popular pizza chain cuts ties with Uber Eats

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Brandon Solano did not.Solano, CEO of Rave Restaurant Group, the parent company of Pizza Inn and Pie Five, ended his company's partnership with Uber Eats rather than absorb a fee increase he says left operators with almost nothing to show for their delivery orders."Uber didn't enter into good faith negotiations with us," Solano said. "They came at us with demands. 'You're going to pay this amount. This is a global increase. And no, we're not negotiating.' I just don't do business like that."In early March, Uber Eats raised marketplace fees across most of its pricing tiers for the first time in roughly a decade, per Restaurant Dive. Rates for its Lite tier rose from 15% to 20% per order. Pickup order rates across all tiers went from 6% to 7%, alongside other increases. The fees cover couriers, new customer acquisition, Uber One member discounts, and payment processing and insurance costs.Uber Eats defended the move. "This change reflects higher costs to operate a reliable delivery marketplace and helps ensure we can continue supporting restaurants, couriers, and customers," an Uber spokesperson said, per Restaurant Dive. The company said restaurants were notified at least 30 days in advance and could switch pricing plans or exit the platform.More Restaurants McDonald’s latest menu missteps could have a major domino effect76-year-old comfort food chain closes most of its restaurantsFast food giant is coming for Starbucks with fan-approved launchSolano was not satisfied. At the new rates, he said operators would be left with little or no profit from delivery transactions. Paying up to 30% per transaction, he argued, was more than what the vendors and farmers supplying ingredients receive."Do we really think technology is more valuable than food?" he said. "I just don't think so."Uber Eats did not negotiate with partners.Nagle/Getty Images · Nagle/Getty ImagesBy ending the partnership, Solano said Rave avoided having to raise menu prices, which would have pushed customers away. He described the exit as having "successfully negotiated the rates down to zero,".He acknowledged the move will cost some volume. "We're going to lose some volume as a result of this," he said. "But at the end of the day, it's volume that we make almost no money on."Franchisees were supportive of the decision. 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