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PhotoHokieNC

Joined: 12/28/2002 Posts: 143028
Likes: 33187


You're right. Here's an excerpt from a post on Quora:


Does DoorDash, GrubHub, Postmates, and Uber Eats charge more for food than the restaurant does?

They do not set or change the price of menu items. They make money on both sides of the transaction. You’ll see a service fee + delivery fee charged to the customer. In addition, they charge the restaurants a commission- usually a percentage of 20–32% of the subtotal of the sale.

Restaurants operate on very small profit margins (3–10%) so the commissions being paid out are extremely costly to them. To mitigate this, some restaurants will charge a higher price on apps than they do if you called it in or ordered on their website. It will be an evolving relationship between the two in the coming years.

(In response to this post by VTHokie2000)

Posted: 01/29/2022 at 07:29AM



+1

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