A Toronto restaurant has been complaining Uber Eats has unfairly set different delivery zones for businesses in the same food hall, and they're seeking to have the issue resolved.

Krazy Dog at Lockport Food Hall in Etobicoke deals in Brazilian hot dogs, but they can't get them out to as many people as they like due to what they say are unfair restrictions on their delivery radius.

"We were told that Uber delivers to Liberty Village from this location. For us, that has never been the case. People as close as three kilometres have been shown that delivery is not possible, while all kitchens beside us are available for delivery," Fauzer Rossi of Krazy Dog tells blogTO.

Krazy Dog showing as too far for delivery on Uber Eats. Screenshot from Krazy Dog.

They've tried to contact Uber to ask about the radius limitations and understand that it may be because they are new to the system, but they also have around 70 positive reviews and a 4.7 rating.

Another restaurant at the same location showing on Uber Eats as available for delivery. Screenshot from Krazy Dog.

"Whenever we contact Uber Eats they will always reply with a script in hand. They have said their algorithm factors in things such as type of food, distance, weather, traffic, etc. Our food is equivalent to a sandwich or burger and well packaged for travel," says Rossi.

"As for weather or traffic-related delays, this is understandable, and we have never complained during days when the weather has been bad. The days we have recorded being unavailable are when restaurants at the same location are available. So we know weather and traffic are not the cause of the delay here."

Though their restaurant routinely shows up on Uber Eats as unavailable to people who aren't immediately close by, they've still been able to deliver through Door Dash and Skip the Dishes, as well as a direct system.

Rossi says another restaurant in the food hall that opened in 2022 called Gully Boys told them they had trouble with Uber for their first three months as well, and that they were able to increase their radius only after repeated calls to Uber.

Screenshots from Krazy Dog showing responses from Uber Eats.

"We pay the same fees to Uber Eats as any other restaurant, and our reputation is fantastic. We are forced to move locations in an effort to be closer to more residential areas since Uber Eats is so limiting as a new restaurant," says Rossi.

"As a new restaurant located inside a food hall, sales through delivery apps represents over 70 per cent of our revenue. Even though we are open from 11:30 a.m. to 9 p.m., Uber Eats will regularly mark us as unavailable during lunch and the beginning of dinner. We're very much feeling the impact of this."

Uber spokesperson Keerthana Rang tells blogTO that they're looking into this specific merchant’s issue and follow up with them directly.

"When a merchant relies on independent third-party delivery people, the delivery radius is determined by a number of factors including region density and delivery person availability. In an effort to avoid unfulfilled deliveries, delivery radii may be adjusted from time to time to maintain the health of the overall marketplace," Rang tells blogTO.

"Uber does offer several flexible options to merchants, including pickup and using the merchant’s own delivery staff. Once restaurants join the platform, they can reach out to restaurants@uber.com and we will work with them if they are facing any issues."