Re:Portland approves 10% cap on fees that food delivery apps...
by RussianCow on Thursday July 09, 2020 @05:58PM
(#23785726)
I have actually seen quite a few restaurants do this, where they use a third-party ordering system but then delegate to DoorDash/GrubHub for delivery. Is it maybe because the delivery service gets a smaller cut in this case? I wonder if the total fees add up to a smaller number with the two middlemen than with only DoorDash/GrubHub. Presumably, the latter can charge more if they also handle the transaction as well as bring traffic, as opposed to only handling delivery.
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Re:Portland approves 10% cap on fees that food delivery apps...
by adfuioqenasdf on Thursday July 09, 2020 @06:10PM
(#23785836)
> Is it maybe because the delivery service gets a smaller cut in this case?
Yes, this is correct. If you order from DoorDash directly, the restaurant will pay anywhere from 15-40% of the total transaction.
Restaurants that have partnered with DoorDash for delivery logistics only will pay usually around $7 per order (this varies depending on geography and overall partner terms).
However, the key difference is that this delivery fee is almost always passed on to the customer. So from a restaurant's perspective, they are getting a great deal: Delivery logistics for customers who want delivery, but if they're using a low/no commission direct ordering service, they keep (most of) the full order margin.