Surge charges introduced to Uber Eats: Why food delivery is set to get more expensive

Uber has introduced surge pricing to its food delivery business. Photo / Supplied

Uber Eats has introduced a surcharge for orders made during peak times.

In an email sent to users today, Uber said a busy area fee would be rolled out in Auckland during times of high demand such as during peak times in the evenings.

Along side the delivery fee charged, the Uber Eats app will display an arrow below the restaurant name which will indicate the higher delivery fee inclusive of the busy area fee. The arrow will also be displayed above the menu of that restaurant.

Busy area fees are live in many overseas cities including in Australia.

Uber says the fee is "designed to help ensure you have a wide selection of your favourite local resturants, even during times of high demand when selection may otherwise be limited".

The fee, which is said to maintain the speed of delivery and selection people have on the app, is similar to surge pricing on Uber rides where by during busy and peak times riders can often expect to pay double for the same distance travelled during an off-peak time.

"In more than 300 cities across the globe, people are using the Uber Eats app because it's a fast, reliable way to get their favourite food delivered by their favourite restaurants in minutes," the ridesharing company said in a statement.

"In order to maintain the speed, reliability, and selection people expect from the Uber Eats experience, restaurants need delivery partners to be available to deliver their orders, especially during peak times."

The busy area fee was rolled out in Wellington about 12 months ago.

Uber has also introduced a new delivery partner surge feature which will allow drivers to earn more in busy times, the company said.

"This feature is live in many overseas markets already and is an important step to help ensure that we maintain reliability and selection on the marketplace in times of high demand where selection may otherwise be limited."

Uber said it would be taking feedback and working on additional improvements to the user fee in the coming weeks.

Uber Eats operates in six cities in New Zealand including Auckland, Wellington and Christchurch. Around 1500 restaurants and eateries are signed on to the platform.

More to come.