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LTC 392-2021 Uber Eats Partnership ResultsMIAMI BEACH OFFICE OF THE CITY MANAGER NO. LTC # 392-2021 TO: FROM: Alina T. Hudak, City Man DA TE: September 15, 2021 SUBJECT: Uber Eats Partnership Results LETTER TO COMMISSION mbers of the City Commission The purpose of this Letter to Commission ("L TC") is to provide the Mayor and City Commission with information regarding the results of the recent partnership between the City of Miami Beach and Uber Eats. Background On February 10, 2021, the City Commission adopted Resolution No. 2021- 31573, accepting the recommendation of the Neighborhood and Quality of Life Committee and authorizing the City Manager to negotiate an agreement with Uber Eats to provide economic relief and marketing support to Miami Beach restaurants in relation to third-party delivery fees incurred by consumers. The Administration negotiated the agreement resulting in a partnership for a 6-week promotional campaign that ran from MIAMIBEACHJuly 1, 2021 through August 14, 2021. The promotional period was strategically scheduled to begin after the high season to provide restaurant businesses with sustained support during weeks with traditionally lower activity. By waiving certain consumer delivery fees, in addition to other promotions, the agreement benefited both Miami Beach restaurants and residents. The partnership also included a joint marketing campaign between Uber Eats and the City to promote the program via various digital media channels. Details of the partnership agreement are more fully described below: • Benefits to Miami Beach Uber Eats application users and Miami Beach (Independent/Small Business) Restaurants: o Uber Eats made available and funded a $0 Delivery Fee promotion for orders on the Uber Eats app from Miami Beach (independent/small business) restaurants to customers located in the City of Miami Beach . o Uber Eats offered users located in the Miami Beach area a complimentary one-month trial (valued at $9.99/month) of the Uber Eats Pass subscription program, which included $0 Delivery Fee and 5% discounts on all eligible orders. o Uber made available via promotional code and funded, a new user promotion of up to $10 off first order on the Uber Eats app when ordering from a Miami Beach restaurant. o Uber discounted the Marketplace Fee to $0 for all restaurant Pickup orders. This included credit card processing fees . o Uber discounted the Marketplace Fee to $0 on orders where the restaurants fulfilled the delivery using their own delivery person . o Uber discounted activation fees to 0% for new restaurants joining Uber Eats (and that were also eligible to participate in the promotion with City) o Uber discounted the restaurant fees associated with online ordering to $0 ( orders processed through a restaurant's website by Uber Eats). Update The partnership was a resounding success with Uber Eats providing a $91,000 in-kind contribution to cover waived delivery fees to customers, an additional $23,600 in waived fees for pickup orders, and about $5,800 in waived fees for restaurants fulfilling deliveries with their own delivery person . The data for the promotional period reflected an overall 11.55% increase in trips (including deliveries via pedestrian, bicycle, scooter, and car) month over month from June to July versus a 6% increase in the City of Miami, which did not have a similar campaign implemented at the time. Miami Beach restaurant sales increased by 15.82% month over month from June to July versus an 8 .31 % increase in the City of Miami. Miami Beach restaurants overall experienced up to a 56.91 % increase in trip growth as a result of these promotional efforts. The best performing restaurants in terms of trip increases month over month are as follows : • Chicken Kitchen 2 .01% • Pura Vida 6.05% • Sriracha House 6.44% • Lucali 7.96% • Thai House 11.11% • Bodega Taqueria y Tequila 16.20% • Hiro 's Sushi Express 20.74% • Iron Sushi 21.46% • Mister 01 34 .15% • Cheeseburger Baby 56.91% Any questions about the foregoing may be directed to Rickelle Williams, Economic Development Director, rickellewilliams@ miamibeachfl.gov.