DashPass is $10/mo which which turns every delivery into ~$1+tip. The idea that I can buy 30min-1hour of a real human's time and labor for $3-4 to deliver me food is silly.
My usual Indian take-out order is $16 if I spend 40 minutes for the round trip or $18 to get someone to deliver it to me.
Delivery fee + service fee + tip meant I still ended up paying $18 for the service. I can't imagine I'd ever be a buyer at the full price.
Also in my experience (in Chicago) the food in the app costed $1-2 more per item (this wasn't listed anywhere, but if you compare the cost with what the resturant charged it was a lot more).
Also there was at least one resturant that I visited that would give you less if you ordered through a delivery app to make up for the fact that they had to pay a fee. This is shady and shitty on the resturant's part and not really DD's fault (although frankly it's kind of predictable) but it was still a thing that happened when I used the app.
I haven't used it for about a year though (because of the above shady practices) so they might have changed.
I don't like that they inflate prices and will not order directly from them because of it. They should be transparent about how much their service costs rather than hiding the true cost of their service in the item prices. I feel like it's likely their fault and not the restaurants since it seems like every restaurant has inflated doordash prices. My only theory is that they may be charging the business service fees in addition to the service/delivery fees they charge the customer.
They do white label delivery for a fast food restaurant I order from. I've had it take 2 hours to deliver multiple times and even had one order get cancelled by doordash after they couldn't get anyone to pick up the order. Most of that delivery time is made up of it switching between multiple people who they expect to pick up my order. Once someone actually picks up my order it only takes about 5 minutes to get to me.
- $2.03 for the burrito (vs 1.29 in store)
- $2.99 for fees and taxes
- $3.99 for the delivery fee
- $2 for the dash tip??? Is 20% customary? It's the lowest dash suggests.
- $11.01 for your burrito
So, for your $1.29 burrito, the price of the item is jacked up by nearly 60% to start. And slam fees, taxes, tips, and you're talking about a total that's 800% higher than the actual item.It's ludicrous. They're catching you at every point to extract cash. Yes, a human delivered something to you, but for the cash conscious, this is an absurdly expensive tilt.
- $15+2 for say, pad thai + taxes - $4 for delivery - $3 for tip
I'm not saying that paying 40% extra for food is a reasonable decision for most people, but (a) I can afford to pay $7 to avoid traveling across town for a specific meal I want, and (b) these numbers get even better with a larger order. If you're the consumer that wants a single $2 bean burrito, the market answer is clearly that you should put a dozen in your freezer and microwave them yourself.
I also think the Doordash business model is not super valuable, but it clearly has some value. Restaurants make an increasing portion of their revenue from delivery (especially during COVID), and having to staff, manage, and route a delivery person themselves is not their core competency. Does signing up with Doordash marginally increase revenue? Yes.