Apps like Uber Eats and DoorDash might’ve sold us on their convenience, but food delivery fees have made the entire process…
More of a problem than a solution.
Is food delivery even worth it with inflated fees?
How Food Delivery Fees Got Out Of Hand
In the old days, it used to be just a few dollars extra to get takeout or pizza delivered on a Saturday night. Now, after delivery apps exploded due to their wide range of options and convenience…
Food delivery fees boosted the price of orders to a ridiculous point.
Logging into one of these apps, consumers no longer just consider the food itself…
They have to think about the price of food…
PLUS taxes…
PLUS tips…
AND the delivery fee…
DON’T forget the mysterious “service fee”.
ALTOGETHER, THESE NUMBERS COULD END UP MORE THAN DOUBLING THE ORIGINAL PRICE OF YOUR MEAL.
As for these “service fees”, giant companies haven’t disclosed what these additional dollars on our check are supposed to cover. It can be anything from keeping servers running to keeping fuel in their driver’s engines.
One of the first rules of business is that usually… customers want to know where their money is going. So it’s not a good look when these brands keep their service fees hidden.
DoorDash charges a 15% service fee on all orders, starting at 3$. Uber Eats hasn’t disclosed how much of a service fee they charge; it depends on order size.
And this isn’t just a cost for hungry customers…
These apps are expensive for restaurants as well. The softwares take as much as 30% of an order’s subtotal.
Now the question isn’t what can the apps do about food delivery fees…
It’s why aren’t they doing anything to combat inflated fees?
Apps Claim It’s A Necessity
Most delivery apps, and ridesharing apps, have found themselves in a hotbed of controversy.
Investigations revealed that these brands have been paying their drivers subminimum wages…
Sometimes half the mandated minimum wage.
In response, cities all over the country have introduced new laws that would pay these drivers better.
IN TURN, APPS HAVE BLAMED THEIR HIGH FEES ON THESE NEW REGULATIONS.
However, even with the new legislation, the apps are keeping costs down in other ways…
Primarily by limiting how many hours drivers can work back to back.
This essentially proves that driver’s wages were never responsible for the higher food delivery fees. These companies have been cutting costs way before this new legislation.
Besides that, it’s not as if these companies are unprofitable. After all, Uber Eats made $1.5 billion in 2023…
However, these companies invest giant percentages of earnings back into marketing. After DoorDash made $8.6 billion in revenue in 2023, $2 billion went back into sales and marketing.
What’s Next?
So… after their cost-cutting on wages, record-breaking revenue, and investments into marketing…
WHY ARE CUSTOMERS STILL PAYING INSANELY HIGH FOOD DELIVERY FEES?
If these companies keep up the way they are now…
It wouldn’t be a surprise if customers go back to ordering their pizzas and Chinese takeout the old-fashioned way.
Be Great,
GCTV Staff
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