Toast and Uber Expand Partnership, Helping Restaurants Reduce Costs and Reach More Diners with Commission-Free Delivery

Rhea-AI Summary

Toast (NYSE: TOST) and Uber (NYSE: UBER) have expanded their partnership to help restaurants reduce costs and reach more diners with commission-free delivery. This new integration between Toast Delivery Services and Uber Direct will enable restaurants across the U.S. to save on delivery fees, expand their delivery radius, and use Uber's extensive delivery network for local deliveries of orders made by phone and through Toast's digital ordering channels, including Online Ordering, Branded Mobile App, and Local by Toast (formerly Toast TakeOut) app.

Since 2021, Toast and Uber have partnered to deliver orders made through the Uber Eats app. With this expanded partnership, restaurants can now offer local delivery for sales made from their Toast digital ordering channels and by phone, while accessing commission-free delivery for a low flat fee per order. Uber Direct is used by various businesses including restaurants, grocers, and retailers. The expanded integration aims to provide restaurants with more choice and help them maximize their margins.

Positive

• Expanded partnership with Uber Direct enables commission-free deliveries, reducing costs for restaurants.
• Increased delivery radius and access to Uber's extensive delivery network.
• Integration helps restaurants maximize margins and reach more guests.

Negative

• No significant negative aspects reported.

Insights

Market Research Analyst

This strategic partnership expansion between Toast and Uber represents a significant development in the restaurant technology sector. The integration of Toast Delivery Services with Uber Direct creates a powerful value proposition by offering commission-free deliveries with just a flat fee per order. This could materially impact Toast's revenue streams and market penetration, as restaurants can now leverage Uber's extensive delivery network while maintaining better margins compared to traditional third-party delivery services. The dual-channel approach - maintaining both Uber Eats integration and adding Uber Direct for Toast's own channels - positions Toast to capture a larger share of the digital ordering and delivery market. Early adoption by multi-location businesses like Over Easy suggests strong potential for scaling this solution across Toast's customer base.

Financial Analyst

This partnership expansion could significantly boost Toast's financial performance by creating new revenue streams and improving customer retention. The commission-free delivery model with a flat fee structure should attract more restaurants to Toast's platform, potentially increasing transaction volume and recurring revenue. For restaurants, the cost savings on delivery commissions directly impact their bottom line, making Toast's platform more valuable and sticky. The integration also addresses a critical pain point in the industry - delivery costs - while expanding Toast's serviceable market. This could accelerate Toast's market share growth and strengthen its competitive position against other restaurant technology providers.

Tech Expert

The technical integration between Toast and Uber's delivery infrastructure represents a significant advancement in restaurant technology solutions. By enabling seamless delivery fulfillment across multiple ordering channels (phone, online ordering, branded apps and Local by Toast), this integration creates a more unified and efficient operational system for restaurants. The ability to maintain direct customer relationships through Toast's channels while leveraging Uber's delivery network is technically sophisticated and operationally advantageous. This could reduce technical complexity for restaurants while improving delivery reliability and expanding service areas.

BOSTON & SAN FRANCISCO--(BUSINESS WIRE)-- Toast (NYSE: TOST), the all-in-one technology platform built for restaurants, and Uber Technologies, Inc. (NYSE: UBER) are excited to announce an expanded partnership, giving restaurants increased choice, and their guests more ways to get their favorite foods delivered to their door while helping restaurants reduce costs and expand their reach.

The new integration between Toast Delivery Services and Uber Direct will allow restaurants across the U.S. to save on delivery fees, expand their delivery radius, and leverage Uber's extensive delivery network to offer local delivery of orders made by phone and through Toast digital ordering channels, including Online Ordering, Branded Mobile App, and the Local by Toast (formerly Toast TakeOut) app. Since 2021, Toast and Uber have partnered to seamlessly deliver orders made through the Uber Eats app.

​​“We are thrilled to expand our partnership with Uber, and delighted to offer restaurants Uber Direct via Toast Delivery Services with fast and reliable local delivery support through our customers’ Toast-powered online ordering channels,” said Kelly Esten, Chief Marketing Officer at Toast. “Partnering with Uber Direct will help restaurants maximize their margins with commission-free deliveries and reach more guests. We are excited to offer these new benefits to restaurants across the United States.”

While listing on the Uber Eats app helps restaurants find new customers and drive demand, Uber Direct enables businesses to tap into Uber’s delivery technology and network to offer local delivery for sales made from their Toast digital ordering channels and by phone. Uber Direct is used by restaurants, grocers, convenience stores, retailers, and more. In addition to providing restaurants with more choice, this expanded integration with Toast will enable restaurants to access commission-free delivery for a low flat fee per order. Uber Direct is now available on Toast Delivery Services for customers to fulfill deliveries of orders made by phone and through Toast digital ordering channels.

“To stay competitive and provide consumers with a frictionless experience, restaurants are increasingly looking to meet customers where and when they want,” said Brandi Villarreal, Head of Online Food Delivery at Uber Direct. “We’re seeing restaurants who are listed on Uber Eats also partner with us on Uber Direct through a provider like Toast. They know from experience Uber Eats offers a reliable and speedy delivery experience, so why not utilize Uber Direct to also fulfill delivery requests from guests who order through their website, app, or other restaurant owned channels. At the same time they can continue to also maximize orders and their ability to acquire new customers ordering via Uber Eats.”

Toast and Uber Direct customers are already seeing benefits from this partnership. Over Easy, a growing breakfast concept with 16 locations across Arizona, has been leveraging the integration to improve the hospitality experience for both staff and guests.

“Uber Direct for Toast Delivery Services has been a great addition to our delivery platform. It allows customers to order through our website, keeps delivery prices down, and offers speedy convenient service. We love the seamless integration,” said Brian Terpay, COO of Over Easy.

About Toast:
Toast [NYSE: TOST] is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a comprehensive platform of software as a service (SaaS) products and financial technology solutions that give restaurants everything they need to run their business across point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management. We serve as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Toast helps restaurants streamline operations, increase revenue, and deliver amazing guest experiences. For more information, visit www.toasttab.com.

About Uber and Uber Direct:
Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 55 billion trips later, we're building products to get people closer to where they want to be. Launched in 2020, Uber Direct enables businesses to offer on-demand, local delivery to customers through their own sales channels. Businesses around the world use Uber Direct to tap into Uber’s delivery network and offer fast and reliable delivery to their customers.

Forward-Looking Statements

This press release contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Toast or its management is discussing its beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “may,” “will,” “expects,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance, but represent the beliefs of Toast and its management at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside Toast’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements regarding Toast’s business arrangement with its partner and the intended benefits and functionalities, and the benefits of such business relationships.

The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Toast’s filings with the Securities and Exchange Commission (“SEC”), including in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations'' in Toast’s Annual Report on Form 10-K for the year ended December 31, 2023, Toast’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024, and Toast’s subsequent SEC filings. Toast can give no assurance that the plans, intentions, expectations or strategies as reflected in or suggested by those forward-looking statements will be attained or achieved. The forward-looking statements in this release are based on information available to Toast as of the date hereof, and Toast disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing Toast’s views as of any date subsequent to the date of this press release.

TOST-CORP
Source: Toast, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241205970239/en/

Media: media@toasttab.com

Investors: IR@toasttab.com

Source: Toast, Inc.

FAQ

What is the new partnership between Toast and Uber about?

Toast and Uber have expanded their partnership to offer commission-free delivery through Uber Direct, helping restaurants reduce costs and reach more diners.

How will the expanded Toast and Uber partnership benefit restaurants?

The partnership allows restaurants to save on delivery fees, expand their delivery radius, and use Uber's delivery network for local deliveries, maximizing their margins.

What services are included in the Toast and Uber partnership?

The partnership includes integration between Toast Delivery Services and Uber Direct for commission-free local deliveries of orders made by phone and through Toast's digital ordering channels.

When did Toast and Uber initially partner for delivery services?

Toast and Uber have been partnering since 2021 to deliver orders made through the Uber Eats app.

What is the stock symbol for Toast?

The stock symbol for Toast is TOST.