VIDEO: Is UberEATS' Latest Move a Death Knell?

NATIONAL REPORT — In a new installment of his video series with Convenience Store News parent company, EnsembleIQ, Phil Lempert discusses the recently announced decision by food delivery service UberEATS to start implementing “surge charges.”

“Sometimes, we just don’t know when to stop, or when we are about to destroy a growing trend,” Lempert said of the charges that will be doled out to UberEATS users in select cities (reportedly, Phoenix, Houston, Dallas, District of Columbia, Miami and Atlanta) where demand for the service is high but delivery partners are scarce.

Lempert said he would never have expected this, especially since around the country, taxis and car services have effectively fought back against the Uber phenomena by advertising “no surge charges.” Additionally, in certain cities across the United States, and especially in London, UberEATS is struggling to make money and gain customers as it continues to give away food to get people to try the service, and offers free food if the delivery is late. 

Lempert believes “it’s the ultimate case of penalizing your existing customers, and giving them a reason to become ex-customers.” He said this should serve as a signal to retailers and restaurants alike to be in tune with their customers.

“Millennials love Uber, love convenience and love (and demand) value. This move from Uber is a reminder to us all to understand our shoppers and realize that delivery or pickup in-store is not a premium add-on, but has become an integral must-have for retailers,” he said.

As CSNews Online previously reported, Lempert and EnsembleIQ forged an exclusive strategic alliance that allows Lempert to provide content and programming to multiple CPG retail media brands within the EnsembleIQ portfolio, including Convenience Store News and Progressive Grocer. 

Lempert is founder of The Lempert Report, a food trends publication, and SupermarketGuru.com, a leading online resource for food safety, products, trends and shopping tips that attracts more than nine million visitors annually.

Click above to watch the video.