The news: Uber Eats introduced a returns feature to simplify the process for shoppers on its platform. Users can send back eligible purchases and receive immediate refunds, all without leaving their home.

This returns capability is separate from its Uber Courier service, which since late 2023 has allowed users to have prepaid, prelabeled packages picked up from their homes and dropped off at their local post office, UPS, or FedEx store.

The caveats: On the face of it, the service adds convenience for customers. But some of the features could create more friction, limiting the appeal of both the returns service and Uber Eats’ platform more broadly.

It only applies to products purchased via Uber Eats, and those items must have a retail price of at least $20.

Return fees are variable. Instead of charging a flat rate, Uber Eats calculates return fees based on the courier’s time and distance—a cost it says is “a small price for never having to find parking at the mall again.” However, that may deter use: 36% of US consumers will not return an item if there’s a fee, according to a July Blue Yonder survey. Charging for returns also risks increasing fraud and alienating customers.

Some costs are nonrefundable. Approved refunds include the item price, taxes, and Uber Eats’ service fee—but they do not include the platform’s delivery fee or tips. That could make some shoppers wary of relying too heavily on Uber Eats for nonconsumables.

Implications for Uber: Uber Eats’ new returns functionality is likely to be more useful for retailers than shoppers because it allows merchants to offload some of the complexities of reverse logistics. While some less price-sensitive consumers may embrace a courier return option for unwanted items, the uncertain costs and limitations of the service could hinder Uber Eats’ efforts to expand into retail categories beyond food.