Uber commits $10M to support Black-owned businesses over next 2 years

Dive Brief:

Uber will commit to a $10 million investment over the next two years to support Black-owned small businesses by driving demand through promotions and other merchant support, according to a company announcement.
Uber previously extended its $0 delivery fee for Black-owned restaurants on Uber Eats through the rest of the year and is currently working on ways to identify and highlight diversity of restaurants on its platform, including Black-owned restaurants, permanently.
The company expanded its supplier diversity program and plans to double its spending with Black-owned businesses and contractors.

Dive Insight:

This type of support may be critical during the pandemic, which has disproportionately impacted Black-owned restaurants, according to The Washington Post. These merchants rely heavily on Black customers, who have also seen higher rates of unemployment. About 41% of Black-owned businesses have closed due to COVID-19 compared to 17% of White-owned businesses, National Geographic reports.

Food delivery aggregators have been particularly supportive of Black-owned businesses and creating more diverse platforms. DoorDash partnered with nonprofit Kiva in early July to match loans for U.S.-based Black-owned businesses while also adding an in-app feature to highlight independent Black-owned businesses. It also extended a $0 delivery fee for merchants within its Black-owned Business program on DoorDash and Caviar through the end of the year. Postmates waived delivery fees for Black-owned merchants and made it easier for customers to search for these businesses.

Uber's marketing and promotional support comes alongside an expansion of product features to help restaurants during the economic downturn. These additions include a map to view nearby eateries providing pickup within walking distance. It also added a restaurant loyalty program and priority delivery option. The company added an in-app feature in June to highlight Black-owned businesses as well.

With COVID-19 surging in areas like Texas, Florida, California and Arizona, reversing local reopening plans, Black-owned restaurants will need to continue to provide takeout and delivery. The tools Uber Eats and its competitors are providing could help these businesses survive turbulent times.