Do you ever scroll Uber Eats, looking for a well-deserved end-of-week treat, and stumble upon fake-sounding restaurants you’ve never heard of? Well, they are fake… kind of.
What’s happening: Uber Eats rolled out new guidelines for virtual brands—restaurants that only exist on the app but operate out of actual restaurants’ kitchens—that aim to remove some 5,000 digital storefronts across North America as they swarm the platform like flies.
- The new rules are similar to those rolled out by DoorDash last year and require virtual brands to offer different dishes from their parent restaurant, include at least five photos of unique dishes, and maintain a minimum star rating of 4.3 out of five.
Why it’s happening: Virtual brands boomed in popularity during the pandemic as hard-hit eateries looked for new ways to boost business and attract younger consumers. Dozens of chains like Applebee’s and Denny’s use them for experimenting with new products.
- In fact, they’re so popular that Toronto Maple Leaf’s superstar Mitch Marner even has one (please, don’t ask us why).
The problem is that many virtual brands have identical menus, meaning they’re not distinct restaurants with unique offerings but the original restaurant dressed up in a clever disguise.
Why it matters: Virtual brands make up 8% of Uber Eats listings in the US and Canada but only account for 2% of bookings. Killing off these clones will free up space on the app and ensure users trying to order from new local spots aren’t duped into ordering from chains like Denny’s instead (no offence to the Grand Slam).—QH