Uber Eats test lets restaurants trade discounts for ranking boost

Uber Eats  has effectively invented its own native ad unit. Uber confirmed to TechCrunch that a test quietly running in markets around India allows restaurants to bundle several food items together and sell them at a discounted price in exchange for promoted placement by Uber  Eats in a featured section of local “Specials.” In some cases, restaurants foot the cost of the discount, while in others Uber pays for the discounts.

The Uber Specials feature demonstrates the massive leverage awarded to food delivery apps that aggregate restaurants. Users often come to Uber Eats and its competitors without a specific restaurant in mind. Uber can then point those customers to whichever food supplier it prefers. The suppliers in turn will increasingly compete for the favor of the aggregators — not just in terms of food quality, speed and review scores, but also in terms of discounts. The aggregators will win users if they offer the best deals; creating a network effect makes restaurants more keen to play ball.

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