This week, Uber Eats is taking thousands of online-only brands off its app to address concerns about the platform being bogged down by duplicate menus from locations operating under different names, reports The Wall Street Journal.
Some restaurants list different brands with the same menus to try to improve their search results, while others experiment with different names to draw customers’ attention to their offerings
Diners are “effectively seeing 12 versions of the same menu” on the app, said John Mullenholz, who oversees the business at UberEats. “It’s fair to say that kind of erodes consumer confidence.”
Virtual brands, delivery businesses without physical storefronts, became an integral part of foodservice during the pandemic for businesses looking to recoup their losses by making the best use of their empty kitchens. The number of virtual brands grew from over 10,000 in 2021 to over 40,000 this year, accounting for roughly eight percent of the company’s listed storefronts in the U.S. and Canada but only two percent of bookings.
The company plans to remove 5,000 online storefronts, covering roughly 13 percent of virtual brands in North America. An example of one of the affected restaurants is a New York City deli that houses 14 brands serving the same sandwiches.
Some restaurants list different brands with the same menus to try to improve their search results, while others experiment with different names to draw customers’ attention to their offerings. Full Story (Subscription Required)
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