What an Uber Eats merchant agreement actually covers
An Uber Eats merchant agreement is a contract between your restaurant and Uber that sets out how the platform will list your food, take orders, handle payments, and resolve disputes. It is not a partnership — you remain an independent business, and Uber acts as an order-taking intermediary that takes a commission on each sale. The agreement specifies what Uber can and cannot do with your menu, pricing, customer data, and operational decisions.
The agreement typically runs month to month after an initial setup period, meaning either party can end it with notice (usually 30 days). However, the terms you agree to at signup are binding until you formally terminate, and Uber can change terms with advance notice — usually 14 to 30 days depending on the change type. You do not have to accept new terms, but refusing means you cannot continue using the platform.
Unlike employment, you have no minimum order volume, no exclusive territory, and no obligation to use Uber's payment processing or point-of-sale system. You can list the same menu on other delivery platforms, run your own website, and accept orders directly. Uber's role is limited to the orders that come through its app and website.
Key Takeaways
- Uber Eats takes a commission on each order (typically 15 to 30 percent depending on your location and agreement tier), and you are responsible for preparing and delivering or arranging delivery of the food.
- Your menu, pricing, and hours on Uber Eats are controlled by you, but Uber can suspend or remove your listing if you violate the agreement or fail to maintain service standards.
- Payment goes to your bank account, usually within 3 to 5 business days after the order is completed, minus Uber's commission and any fees for services you use.
- You remain liable for food safety, labor law compliance, and customer disputes — Uber does not assume those responsibilities on your behalf.
- The agreement can be terminated by either party with notice, but Uber can also deactivate your account immediately if it believes you have committed fraud or violated health and safety rules.
How commission and fees work
Uber Eats charges a commission on the subtotal of each order, not including tax or delivery fees. The commission rate varies by city, restaurant type, and whether you use Uber's delivery service or arrange your own. In most US cities, the rate ranges from 15 to 30 percent, with smaller independent restaurants often paying toward the higher end and established chains sometimes negotiating lower rates.
Beyond commission, you may owe additional fees: a payment processing fee (usually 2 to 3 percent) if you use Uber's payment system, a delivery fee if Uber provides the driver, and a small per-order platform fee. Some agreements also include a monthly marketing fee if you want Uber to promote your restaurant within the app. You can see the exact breakdown in your merchant dashboard, and it updates each time Uber changes terms.
If a customer disputes a charge or requests a refund, Uber typically deducts the refund amount from your next payout. If you have already been paid, Uber may reverse the payment or ask you to reimburse them. This is why tracking your orders and customer communication matters — a pattern of refund disputes can trigger an account review.
What happens to your menu and pricing
You control what appears on your Uber Eats menu, but Uber controls how it is displayed and can remove items or your entire listing if you violate the agreement. You set your own prices, and you can charge different prices on Uber Eats than you do in-restaurant or on other platforms — Uber does not require price parity. However, if Uber discovers that you are systematically charging significantly more on its platform, it may flag this as a violation of fair dealing terms.
Your menu must match your actual inventory and preparation capability. If you list an item but frequently tell customers it is out of stock, Uber may suspend that item or your account. Similarly, if your hours on the app do not match when you actually accept orders, customers will complain and your rating will drop. Uber uses ratings and complaint volume to decide whether to keep promoting your restaurant or demote it in search results.
You are responsible for updating your menu when items change, prices shift, or you stop serving something. Uber does not monitor your physical restaurant, so if you forget to remove a discontinued item from the app, customers will order it and you will have to refund them — and Uber will deduct the refund from your payout.
How payment and payouts work
When a customer places an order through Uber Eats, the payment goes to Uber first, not directly to you. Uber holds the money, deducts its commission and fees, and transfers the remainder to your bank account on a regular schedule — usually every 3 to 5 business days, though some cities operate on weekly cycles. You can see pending and completed payouts in your merchant dashboard, and you can download transaction reports for accounting purposes.
If you use Uber's payment processing (rather than your own point-of-sale system), Uber also deducts a payment processing fee, typically 2 to 3 percent. This is separate from the commission. If you use your own payment system and Uber only handles order routing, the processing fee may not apply — check your agreement.
Refunds and chargebacks reduce your payout. If a customer disputes a charge with their credit card company, Uber investigates and may reverse the payment to them, then deduct it from your next payout. If you have a pattern of chargebacks or refunds, Uber may place your account under review or require you to maintain a reserve balance before paying out.
Suspension, deactivation, and what triggers account closure
Uber can suspend your account (temporarily pause orders) or deactivate it (permanently remove your listing) for several reasons. Temporary suspension usually happens when your rating drops below a certain threshold (typically 4.2 stars), you have too many customer complaints, or you repeatedly fail to accept orders. Suspension is often reversible — you can improve your rating, resolve complaints, or contact Uber support to appeal.
Permanent deactivation is harder to reverse. Uber will deactivate your account immediately if it believes you have committed fraud, violated health and safety laws, engaged in illegal activity, or breached the agreement in a serious way. Examples include submitting false documents during signup, operating without required food permits, accepting orders you cannot fulfill, or using the platform to launder money. Immediate deactivation means you have no warning and no chance to fix the problem first.
If your account is deactivated, you can request an appeal through Uber's support system, but Uber is not required to reinstate you. The appeal process is not transparent — Uber does not publish its criteria or timelines. Some restaurants have successfully appealed after months; others have not. You have no legal right to continue using the platform, though you may have recourse if you believe Uber acted in bad faith or violated local law.
Your responsibilities under the agreement
The merchant agreement makes clear that you, not Uber, are responsible for food safety, labor compliance, tax reporting, and customer service. You must hold all required food permits and licenses, follow health codes, and maintain insurance. If a customer gets sick from your food, you are liable — Uber will not cover it. If you misclassify workers or violate wage laws, that is your legal problem, not Uber's.
You are also responsible for accurately describing your food, honoring dietary restrictions and allergies, and delivering or arranging delivery on time. If you consistently deliver late, customers will rate you poorly and Uber will demote you in search results or suspend you. If you misrepresent ingredients and a customer has an allergic reaction, you face both a lawsuit and account deactivation.
Tax reporting is your responsibility. Uber sends you a 1099 form at year-end if you earned over $20,000 in a calendar year, but you are responsible for tracking all income and expenses, paying quarterly estimated taxes if required, and reporting everything to the IRS. Uber does not withhold taxes or file on your behalf.
Delivery options and logistics
You have three delivery options under most Uber Eats agreements: use Uber's driver network (Uber Eats delivery), arrange your own delivery, or offer pickup only. If you use Uber's drivers, Uber charges you a delivery fee (usually $1 to $3 per order depending on distance and demand), and the customer also pays a delivery fee. You do not control driver assignment or timing — Uber's algorithm does.
If you arrange your own delivery, you handle driver hiring, scheduling, and liability. You can use your own staff, hire a third-party courier, or partner with another delivery service. Uber will not charge you a delivery fee, but you still pay commission on the order subtotal. This option works best for restaurants with high order volume or a concentrated delivery area.
Pickup-only means customers come to your restaurant to collect their order. You do not pay a delivery fee, but you still pay commission. This option is common for restaurants that want to use Uber for marketing without the logistics of delivery.
Disputing charges and resolving conflicts
If you believe Uber has charged you incorrectly, deducted a refund you did not authorize, or suspended your account without cause, you can file a dispute through your merchant dashboard or contact Uber support directly. Uber's support team will investigate, but the process is not formal — there is no hearing, no independent arbitrator, and no published timeline. Disputes can take weeks or months to resolve.
Most merchant agreements include an arbitration clause, which means you cannot sue Uber in court over disputes. Instead, you must go through arbitration, a private process where a neutral third party hears both sides and makes a binding decision. Arbitration is faster than court but also more limited — you cannot appeal the decision, and you have fewer discovery rights. Check your agreement for the arbitration clause and any carve-outs (some disputes, like intellectual property claims, may not be subject to arbitration).
If you believe Uber has violated local law — for example, by charging fees that are illegal in your city — you may have grounds to pursue legal action despite the arbitration clause. Some jurisdictions have ruled that arbitration clauses cannot override statutory protections. Consult a local attorney if you think Uber's conduct violates a specific law.
Frequently Asked Questions
Can I set different prices on Uber Eats than in my restaurant?
Yes. Uber does not require price parity, so you can charge more or less on the app than you do in-store. However, if you systematically overcharge on Uber Eats, Uber may view this as unfair dealing and flag your account. Most restaurants charge slightly more on delivery platforms to account for commission and delivery costs.
What happens if I want to leave Uber Eats?
You can terminate the agreement by giving notice (usually 30 days) through your merchant dashboard or by contacting support. After the notice period expires, your listing will be removed and you will stop receiving orders. Any pending payouts will be processed according to your agreement. You can rejoin later if you want, though Uber may require you to go through signup again.
Does Uber Eats handle customer complaints and refunds?
Uber handles the refund transaction — it processes the refund to the customer's payment method and deducts the amount from your next payout. However, you are responsible for resolving the underlying issue. If a customer complains about food quality or missing items, you should respond through the app and offer to make it right. Repeated complaints will hurt your rating and can trigger suspension.
What if my restaurant loses its food permit?
You must notify Uber immediately. Operating without a valid permit violates the merchant agreement and local law. Uber will likely deactivate your account, and you cannot reactivate until you provide proof of a current permit. If Uber discovers you were operating without a permit, it may permanently deactivate you and report you to local health authorities.
Can Uber change the commission rate or other terms?
Yes. Uber can change commission rates, fees, and other terms with advance notice (usually 14 to 30 days). You do not have to accept the new terms, but if you refuse, you cannot continue using the platform. If the new terms are unacceptable, your only option is to terminate the agreement and stop using Uber Eats.