# 'Flattening out': Have we hit peak Uber Eats as consumers return to restaurants?



## Hugh G (Sep 22, 2016)

*'Flattening out': Have we hit peak Uber Eats as consumers return to restaurants?*









*By Cara Waters*
July 12, 2019 - 12.00am
https://www.brisbanetimes.com.au/bu...rs-return-to-restaurants-20190711-p52667.html

Growth in the online takeaway food sector, which is dominated by Uber Eats and Deliveroo, grew by a mere 4 per cent in May, a far cry from heady growth rates of up to 56 per cent in 2016 as more consumers turn to restaurant experience.

Research published by Morgan Stanley last week shows the online takeaway food market shrank in April and February, posting growth of 3 per cent in March and 12.5 per cent in January.


Chef and restaurateur Scott Pickett in his restaurant Estelle. Credit:Scott McNaughton

Scott Pickett, owner of Melbourne restaurants Estelle, Matilda, Pickett's Deli and newly opened Lupo, said the effect of online delivery giants Uber Eats and Deliveroo in Australia in 2016 has been limited.

"It hasn't had a huge impact on us and it has had a slight impact on the market more broadly," he said. "It's flattening out now."

Mr Pickett compared the launch of the online delivery platforms to when digital television was released.

"Everyone went out and bought a 50 inch screen and you would have thought the market would fall out of cinemas," he said. "Somehow, the movies are still there and they are going strong because people want to go to the movies. They want to be treated. There are big parallels, you can sit on your couch and watch a movie or sit on the couch and eat a meal out of a box."










Frank Camorra, owner of the Movida group of restaurants which operates across Melbourne and Sydney, said the "pretty high" commissions of Uber Eats and Deliveroo are a factor.

"I don't know if it affects mid to high range [restaurants] as much as the lower range," he said.

Mr Camorra uses the delivery platforms for his Mexican brand Paco's Tacos but no longer offers online delivery of Movida's food which was previously available through now shuttered platform Endulge.

Some restaurateurs were unhappy that contracts left them responsible for late deliveries, rather than Uber themselves, according to an ABC report.

"The problem was it was not what people really wanted," Mr Camorra said. "I don't think people want that sort of food delivered to their home, they want comfort food, if they want Movida food they go to the restaurant and it's all part of the experience."


> I don't think people want that sort of food delivered to their home.
> Frank Camorra, restaurateur


*Future demand is an issue Uber Eats grappled with at its Future of Food conference in Hong Kong this week.

In a report entitled 'Future of Food' prepared by Deloitte for Uber Eats, online food delivery in Australia is valued at $US939 million ($1.3 billion) for 2019.*

"The delivery of restaurant meals to the home has risen dramatically in recent years," the report said. "One third of consumers [across Asia-Pacific] are now using a restaurant or meal delivery service and 7 per cent of consumers get delivery once a week."


Frank Camorra said the food served by Movida is not the type of food people order for home delivery.

The report outlines changing consumer preferences and notes demand for convenience, predicting "consumers will increasingly order food online or choose to eat out during meal times".

However, the report also highlights consumers who value preparing meals at home and the trend towards an "experience economy" where eating in restaurants rather than ordering via an app is popular.

"Goods and services are increasingly accessible and consumers are moving away from buying things," the report found. "Instead, they are looking to accumulate experiences and memories. Successful restaurants are finding ways to deliver a dining experience that offers more than just taste."

Restaurateurs such as Mr Camorra and Mr Pickett are working hard to deliver that experience through designer restaurant fit-outs, warm service and features like open kitchens where diners can watch chefs at work.

"People love the interaction and what they are surprised about and love most is the intensity and the focus of what the chefs have to do to produce a meal," Mr Pickett said. "It is a great insight into how much care, focus and passion goes into the food."

Levi Aron, country manager for Deliveroo Australia, said the platform was "growing rapidly" across Australia with revenue growth increasing by 75 per cent in 2018.

"We work with more than 8000 riders and 11,000 restaurants across 13 Australian cities," he said. "Australians have embraced online food delivery as an easy and convenient way to access their favourite restaurants wherever and whenever they want."


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## Who is John Galt? (Sep 28, 2016)

A good article, thanks Hugh.

I am a big fan of dining in open kitchens and there are some great examples in the McLaren Vale 'vinyard restaurants' - Shingleback's kitchen with chef Horst is a standout.



Hugh G said:


> and features like open kitchens where diners can watch chefs at work.
> 
> "People love the interaction and what they are surprised about and love most is the intensity and the focus of what the chefs have to do to produce a meal," Mr Pickett said. "It is a great insight into how much care, focus and passion goes into the food."


I have to wonder if the open kitchen experience might eventually come to parallel Übering where the dining guests, who are usually limited to a dozen or so, start pestering the chef with all the usual questions, "So, how long have you been a chef? Do you enjoy it? Do you have another job besides cooking? How does your wife feel about you having strange women in your kitchen? How much do you make per hour? Is it true the winery takes 25% of the bill as their commission?"

.


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## RabbleRouser (Apr 30, 2019)

Hugh G said:


> *'Flattening out': Have we hit peak Uber Eats as consumers return to restaurants?*
> 
> 
> 
> ...


?Uber has been testing a new service that eliminates the seemingly most important part of that equation: the driver

⚠Instead, the brand is testing letting users order on the app and then going to the restaurant to eat anyway. Meet Uber Eats Dine-in.

https://www.foodandwine.com/news/uber-eats-order-ahead-dine-in


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## Smythe-Brownson-Brown (Jun 24, 2019)

Maybe we as the driver can then watch them eat for a small fee lol


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