An in-store pricing promotion for Co-op stores on Uber Eats is putting Nisa retailers at a competitive disadvantage when selling the multiple’s own label.
Last month, the home delivery provider started a promotion offering in-store prices on deliveries from Co-op, Iceland, Morrisons Daily and McColl’s. In comparison, independent retailers using the service are charged a fee per transaction, meaning some are forced to increase the price of goods to remain profitable.
Analysis by betterRetailing on a basket of 50 Co-op own label lines from competing Nisa and Co-op stores on the same street using Uber Eats found that the multiple was cheaper by £26.91 due to the promotion. The basket for the Co-op store was £121.10, compared to £148.01 from the Nisa retailer. The basket included a range of fresh, ready meals, dairy and ambient products.
The promotion from UberEats faced criticism from Nisa retailers. One affected store owner told betterRetailing: “We’ve been supporting Uber Eats since the pandemic, but this is unfair. The promotion makes us look like we’re more expensive to customers.”
When asked about the deal, a Co-op spokesperson said they were unable to share details of commercial agreements in place with Uber Eats.
Meanwhile, a Morrisons Daily spokesperson confirmed to RN that Uber Eats services were exclusive to its centrally-owned stores, and not franchisees.
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