---
title: "CNN Money: Why Uber Eats and GrubHub Partnerships Are Risky for Brands"
url: https://burnaze.com/article/e2cf7539-6574-4433-be8c-1ef43a94a1d8
source: "1851 Franchise"
original_url: https://1851franchise.com/cnn-money-why-uber-eats-and-grubhub-partnerships-are-risky-for-brands-2706173
category: "Restaurants"
industry: "Restaurants"
published: 2018-04-03T18:13:26.000Z
modified: 2026-11-01T04:10:16.860Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/4374b83445ce8d46bc0e1113ed59338e1782.jpg
---

# CNN Money: Why Uber Eats and GrubHub Partnerships Are Risky for Brands

**TL;DR:** Partnerships with third-party delivery companies like Uber Eats, DoorDash, and GrubHub can be risky for restaurants due to shrinking profit margins and shifting customer allegiances. Restaurants pay 15 to 30 percent in fees to these apps, making profit margins tighter.

*originally published in 1851 Franchise on 2018-04-03. [Read the original](https://1851franchise.com/cnn-money-why-uber-eats-and-grubhub-partnerships-are-risky-for-brands-2706173).*

## Story

In today’s digital-centric world that’s focused on speed and convenience, food delivery is big for business. However, a recent article in CNN Money highlights the reasons that partnerships with third party delivery companies can be risky for restaurants.

One of the biggest risks to restaurants who engage with companies like Uber Eats, DoorDash and GrubHub is shrinking profit margins and shifting customer allegiances. Restaurants are paying 15 to 30 percent in fees to third party apps, making profit margins tighter than before. Restaurants who partner with these apps also risk losing more profitable dine-in sales. It’s also possible for consumers to get a bad impression of a restaurant if their food is late or cold, which may be the fault of the delivery service.

Stephen Dutton, an analyst at Euromonitor International, told CNN Money, “It’s difficult for a restaurant to just flip on the switch. Navigating the best way to get involved in delivery is a big challenge.”

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- DoorDash (company)
- Uber Eats (company)
- Grubhub (company)
- third-party delivery (topic)
- profit margins (topic)
- restaurant partnerships (topic)
- customer allegiances (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/cnn-money-why-uber-eats-and-grubhub-partnerships-are-risky-for-brands-2706173). Summarized by Burnaze (https://burnaze.com/article/e2cf7539-6574-4433-be8c-1ef43a94a1d8).