Uber Eats has approximately 95 million users, according to Business of Apps.
The food delivery app generated $13.7 billion in revenue in 2024 and is the most popular food delivery service. There are also restaurants available on Uber Eats in around 11,500 cities, with more than one million restaurants total on the app.
Unfortunately, Uber Eats is also expensive. Business of Apps reports that it takes a cut of between 20% and 30% of all orders. Many people who use Uber Eats end up paying a significant markup on the food they are purchasing, on top of paying fees and tipping the driver.
While Uber Eats already costs a lot, it could soon cost more in one particular state. Here’s why.
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Uber Eats may soon cost more in this U.S. state
According to Illinois Policy, Uber Eats customers may soon face higher prices in the state of Illinois. And it’s not just Uber Eats, either. DoorDash could also become more expensive.
The cost of app-based food delivery could be going up because of a new tax. Illinois Policy says House Speaker for the state Chris Welch has not ruled out a “controversial” new tax on deliveries through these apps.
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A tax had initially been proposed that would add $1.50 to the price.
Welch has now said the new proposed delivery tax wouldn’t be that high. However, he has also made clear that he would not eliminate the idea of a delivery tax as a possible revenue source.
Why Illinois lawmakers are trying to tax Uber Eats and DoorDash
The new tax on delivery service is on the table because lawmakers are seeking a revenue source to support Chicago’s mass transit system.
RTA is facing substantial shortfalls in 2025. The mass transit system is short by an estimated $230 million in 2025. The shortfalls are expected to increase very substantially. By 2025, the amount could climb to $790 million, and by 2028, it could be short $890 million.
The shortfall exists and is getting worse because ridership levels are very low. The mass transit system is being used less than it was in its pre-Covid-pandemic days. Unfortunately, federal Covid aid is coming to an end, which will leave a major funding gap.
Who would be affected by the new tax on Uber Eats and DoorDash?
Illinois Policy makes clear that if the new tax were put in place, it would not affect only those in the Chicago region who actually use the public transportation system.
“It would hit every Illinoisan who shops online, including those who may never use CTA, Metra or Pace services. Whether the final amount is $1.50 cents or a quarter, it’s still a new statewide charge to prop up a Chicago-area transit system,” Illinois Policy wrote.
Will the new food delivery tax go into effect?
While the new tax is on the table, there’s no guarantee lawmakers will pass a bill to implement it. Eater reported on the efforts of lawmakers to impose the added cost on food deliveries in June 2025.
Lawmakers tried to put the $1.50 tax in place at that time, with the details of the proposal released hours before the legislative session for Illinois lawmakers was set to expire on June 1.
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While the bill passed through the Senate on May 31, it did not make it to the House to be voted on.
Its passage in the Senate shows strong support, however.
Lawmakers have made clear they are not giving up on delivery services as a potential revenue source, so the new tax may very well go into effect in the near future.
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