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> I don't see how delivering somebody else's food can be profitable DoorDash marks up menu prices 15-25% or so, charges $5-6 for delivery, and an implied tip t
by ac29 11y ago
> I don't see how delivering somebody else's food can be profitable
DoorDash marks up menu prices 15-25% or so, charges $5-6 for delivery, and an implied tip to the driver ensures they don't have to pay drivers much (the last point is speculation, but I suspect its true). A $25 pizza costs over $40 to get delivered from 5 miles away after all that. That is what is ultimately unsustainable about the business -- if they can't turn a profit with ~40% service fees, they are doomed.