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dmazzoni t1_j6l2okb wrote

Reply to comment by shaneknysh in ELI5 How Uber/Doordash show tips on the Deliverer's app - and can they redesign the app to "hide" the tips? by [deleted]

> The delivery service takes 18% or more from the restaurant so the restaurant is very close to making nothing on the low price orders.

This just isn't true, for several reasons.

The restaurant saves money not needing to pay someone to take the order and collect the money. They save money on their credit card merchant fees and chargebacks (DoorDash/UberEats assume all the risk).

And if it's still not worth it to them, the restaurant can charge different prices than in-store. Some restaurants near me charge 20% more if you order on DoorDash than if you call in.

It's just economics. If the restaurant isn't making enough money they can charge more. If they charge too much and people don't want to pay, then people can either pick up themselves or go elsewhere.

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shaneknysh t1_j6l5l5t wrote

I'm sure your restaurant is thriving. While working as a delivery driver, the restaurant owners and managers I talked to none liked the delivery apps. Some used it because they didn't have delivery otherwise but it dropped their margins to 2% or worse. Others used the delivery services because they saw a drop in orders to Skip and Uber Eats. They couldn't drop in house delivery or they would lose call in and direct orders that earned more. Now they had 3 competing delivery services and Skip and Uber out bid them for online advertising for their own restaurants.

But the next time I talk to them I'll pass on your advice. I'm certain raising prices or charging for delivery has never occurred to them.

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