Could you explain further? The restaurant gets the order at the same price, Uber adds delivery fees and a 25% markup on the cost of food. Why would these numbers not work out in the kitchen's favor? Maybe I'm missing something. Genuinely curious.
It’s more expensive volume or less cheaper volume they can make due to higher ingredient prices PLUS the fees they have to add to cover the delivery service cut. That’s how you get a $20 burger for delivery.
This all gets worse when the prices become sticky at the retail place itself (app prices enter the real world). These delivery service are a serious agitator, true disrupter.
If I were a restaurateur and caught a glimpse of a Doordash driver in my finest establishment, the first thing I would do is put together a simple online order form and start advertising it in every order. If you just disappear from the app one day, your customers trying to reorder would probably go somewhere else – but if they know they can order on your site instead, they probably will (if your food is good enough and your ordering experience is top-notch, or vice versa).
And the restaurant can say “no.”
If I were a restaurateur and caught a glimpse of a Doordash driver in my
finest establishment, the first thing I would do is put together a simple
online order form and start advertising it in every order.
e.g. https://boston.eater.com/2016/3/4/11160924/legal-sea-foods-s...
The claim isn't that your saying no to fulfilling orders,
it's that your saying no to giving them a discount.
Unless something has changed over the last couple years,
restaurants opt in to being available on those apps.
Everything is possible. And every choice has its own set of tradeoffs. But no, there’s no time machine to the pre-Doordash world now.
There's a lot of dynamic variables here (including of course the "the person doesn't order from the restaurant"), but the few times I've used those delivery apps I end up ordering very little food for a lot of money.
I try to just do takeout instead.
Of course delivery has a cost, was even typical for pizza delivery before the apps. If you're that price conscience, takeout always exists.
Remember, delivery apps take the costs and then their cut. That cut theoretically has some pressure from markets or whatever, but ... well.....
I'm splitting hairs here, granted
- https://www.eater.com/2020/1/29/21113416/grubhub-seamless-ki...
- https://www.knoxnews.com/story/entertainment/dining/2018/10/...
- https://lawstreetmedia.com/featured/restaurant-sues-doordash...
- https://www.golocalprov.com/news/legal-but-unethical-ri-rest...
- https://www.wctv.tv/2023/12/19/phony-restaurant-listing-door...
Doesn't excuse Doordash taking advantage of anyone.
There are other issues, but this setup looks a lot like paying the mafia due to the imbalance of power.
Price shouldn't be the only thing the restaurants care about.
Did I imply otherwise?
"Different concerns" means there is more than one concern...
Pitting restaurants against each other on who can cut corners the best. You often get worse meals at higher prices.
This business model essentially makes sure all the surviving ones are those who can get by on the lowest profits.
And what’s wrong with “lowest profit”?
If that equates to lower quality, you as a customer are free to select the more expensive restaurant on DoorDash.
Airlines have tiny profit (single digit $ per passenger) yet there’s no sympathy for them.
So “big greedy corporation” vs “mom and pop shop” is the core reason, yeah?
China has drone food delivery. Lower profits than American delivery.
China ain’t obese.
Try again.
> Obesity in China is a major health concern according to the WHO, with overall rates of obesity between 5% and 6% for the country,[2] but greater than 20% in some cities where fast food is popular.
> Rapid motorization has drastically reduced levels of cycling and walking in China. Reports in 2002 and 2012 have revealed a direct correlation between ownership of motorized transport by households in China and increasing obesity related problems in children and adults.
> A leading child-health researcher, Ji Chengye, has stated that, "China has entered the era of obesity. The speed of growth is shocking."
You're sooooo clever.
Edit: extra LOL at creating the account to criticize and then downvote facts in the reply.
Not me, I made this account 7 days ago. Check my history.
> And then you wonder about the obesity crisis.
And for the record:
I don’t give a shit about the obesity crisis.
Or any other drug, mental health, crime, or demographic problem facing any country.
I only care about the number on my bank statement.
Well, my private equity partner accounts, but you get my point.
> Well, my private equity partner accounts, but you get my point.
When they bury us, the money won't matter.
Soviet-style command economies aren’t a better alternative, but it’s an incentive problem with market economies without an obvious solution; market fundamentalists get around it by just insisting that if consumers really cared, they’d seek out alternatives, but this doesn’t solve the problem until after it happens.
This problem is mirrored by an incentive structure observed in government where a concerted interest group can expend more time and effort lobbying for a budget allocation than an individual can expend resisting it.
1. A lot of restaurants are passion businesses and they don't realize how much money they are losing.
2. Morale in the kitchen is important, orders coming in keeps morale up.
From myself I would also add that they get a FOMO, cause it's hard to sit and watch others get business, however unprofitable. The most stable and profitable businesses in towns where we operated only worked with us, cause we offered cooperative ownership and small commission. It made no financial sense for them to work with anybody else.
Doordashes filings as a public company have stated that the average revenue share with restaurants is 18% and maximum is 30%