I have seen many similar posts regarding food delivery companies, such as doordash or Uber eats. I just wanted to share some data points on why the business model is not sustainable. I ordered a pizza and bbq wings from a local restaurant at Uber eats; the same pizza is listed as about 2 dollars more, the same price for the wings though, compared to the menu from the restaurant. Subtotal: $39 Tax: $3.37 Delivery fee: $0.99(unchangeable) Service fee: $5.5(unchangeable) Delivery person tip: $5(I volunteered to pay for it) ———————— Payments: $53.86 Why did I pay $54 for the $42 food I could order from the restaurant? Because I had a ”$20” promo code from an Uber email. I don’t mind picking up the food myself; paying 25% more to get the same food if I don’t have a promo code? Edit: what happens when a consumer orders $400 in food for a family event? H/she then pays an additional $100. I’m not a cheap person, but I believe most people spend dollars wisely. :)
They also make money from restaurant side of things
Also subscriptions to loyalty programs, advertising revenue, etc. Also many promotions you see are paid for by the restaurant.
Sign up for dash pass with Chase sapphire Reserve. No delivery fees and service fee. Also just FYI the prices on these platforms are decided by the Merchant.
Yeah, that's a good deal
I signed up for this a year ago using another Chase card (United) and I still see that they bump menu prices up. Is it just me? They still add some fees and tips and such and it does look like what OP described. I order a bunch though.
That $20 is a scam for the most part! However, I used it once and ordered food that worth only $20. I did saved few bucks with the tip as well
If people are willing to pay, seems sustainable to me.
Why does Uber eat promo codes?
There is a limit on how much you can save with the promo codes so you can’t order tons of food 😔
The restaurant sets the menu prices in the app. They may be higher than in-store due to them wanting to cover the marketplace fee. The higher cost is due to its convenience. What do you value your time and gas to pick up the food yourself?
Why are people so brain dead? “Why am I paying more? I don’t mind picking it up myself” Then go do that? Delivery on demand is literally the primary purpose of the product.
It’s the same logic as “why should I pay $15 for a panini at a restaurant if I can make the same sandwich at home for $3?!” If consumers were unwilling to pay massive premiums for convenience and intangible benefits like inhabiting a space with nice ambience for 45 minutes, or being in a fancy space while you get your grocery staples, etc. our economy would be radically different. I wonder if a lot of these posts are coming from recent immigrants from developing economies where paying for luxury was out of reach and frowned upon as frofligate. Not dissing my H1B homies, I’ve just observed very different (and pretty understable given their biographical histories) attitudes toward spending from newcomers and a poor understanding of typical US spending behavior
^ interesting point Uber - never thought of that.
Get UberOne its the only way to be economical w it and is what they are banking on for repeat users
Agree. I only do it if I’m super pressed for time. Like maybe once this year so far