Uber Eats to Axe 5,000 ‘Ghost Kitchen’ Eating places

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In the event you’ve ever perused Uber Eats late on a lazy afternoon, you have almost certainly come throughout institutions that you’ve got by no means seen in actual life — and that is as a result of many do not really exist. These companies function out of “ghost kitchens.” (On the flip aspect, seeing a spot in actual life that you’ve got mysteriously ordered from on a meals supply app can really feel like watching a canine stroll on its hind legs.)

Ghost kitchens are digital eating places that do not even have a bodily storefront and may be run out of anyplace. Or, generally, it is a chain that you just’re already acquainted with working a supply service below a distinct identify and making a revenue by separate branding by meals supply providers. For instance, you is perhaps ordering dinner from “Joe’s Wing Store” on Uber Eats however in actuality, you are ordering from Applebee’s down the block.

Now, Uber Eats is attempting to crack down on these operations. The Wall Road Journal reported on Monday that the corporate is attempting to wash up overcrowded “digital” eating places from its database.

The supply service platform is ready to take away 5,000 “ghost kitchens,” which account for roughly 13% of the app’s companies in North America, per WSJ.

WSJ reported that Uber Eats at present has an estimated 40,000 ghost kitchens on its app (about 8% of whole Uber eats eating places within the U.S.). In 2021, earlier than the pandemic restricted in-person eating and ordering out turned the norm, roughly 10,000 have been registered.

Many have taken to social media to speak concerning the inflow of ghost kitchens which have crept up on the platform. One TikToker, for instance, identified how she found she had “catfished” by digital eating places by looking their places on a map.

@katiemarble Did anybody else not know this was a factor?? #ghostkitchens #grandrapids #eating places #catfish #ubereats #convictionchicken #michigan #falseadvertising #greenscreen ♬ authentic sound – Katie Marble

“In the event you’re craving a sandwich, there’s the Meltdown,” she says, pointing to the restaurant identify indicated by the Uber eats itemizing, earlier than switching the display screen to point out the tackle supplied on Apple Maps. “Which is definitely Denny’s.”

John Mullenholz, Head of Darkish Kitchens (aka digital eating places) at Uber Eats, informed WSJ that the panorama for ghost kitchens on meals supply apps has change into much like the “Wild West,” and it is tough to manage on-line storefronts and duplicate kitchens on the backend.

“It is honest to say that form of erodes client confidence,” he informed the outlet.

Uber Eats plans to tighten its pointers this week. Digital eating places working in the identical kitchen should have a menu a minimum of 50% completely different from others to remain on the app, together with displaying 5 images to customers.

Ghost kitchens that drop under 4.3 out of 5 stars, as rated by clients, may even be on the chopping block.

“Speaking — and starting to implement — these new high quality requirements for Digital Eating places on Uber Eats is a crucial step for our program, designed to learn each shoppers and retailers,” Mullenholz informed The Verge in a press release.

Uber, which owns Uber Eats, was down simply over 12.7% in a one-year interval as of Tuesday afternoon.