Uber Eats will remove thousands of online-only brands from its app this week, citing concerns that the platform is becoming congested due to restaurants listing multiple delivery options with different names but identical menus.

 

Uber Eats will remove thousands of online-only brands from its app this week, citing concerns that the platform is becoming congested due to restaurants listing multiple delivery options with different names but identical menus.  Uber Eats will also introduce new requirements for virtual restaurants operating from the same location.  During the pandemic, so-called virtual brands, delivery businesses without physical storefronts, surged on delivery apps, providing a lifeline for eateries that used their empty kitchens and idle staff to experiment with new ideas and make up for lost sales. The number of virtual brands on Uber Eats has skyrocketed from over 10,000 in 2021 to more than 40,000 this year, representing 8% of Uber Eats' storefronts listed in the U.S. and Canada. Despite accounting for 8% of all storefronts, virtual brands only account for 2% of bookings.  The platform now requires virtual locations to have menu items that are at least 60% different from any other virtual restaurants operating from the exact physical location, including the parent restaurant or kitchen that houses the virtual brands.