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Restaurants don't pay a large up-front cost to be on these food delivery services. All of the services make money by taking a percentage of the revenue (general
by gringoDan 9y ago
Restaurants don't pay a large up-front cost to be on these food delivery services. All of the services make money by taking a percentage of the revenue (generally 15-30%) from the orders they fulfill.
As long as the revenue from delivery exceeds the food cost (marginal cost of preparing an order) it is beneficial for restaurants to be on AS MANY of these delivery services as possible. This is why you'll walk into some places and see 5 iPads next to the register - they're working with not only UberEats, but DoorDash, Eat24, Postmates, GrubHub, etc.
I do have many issues with these food delivery services, but the restaurants aren't getting the short end of the stick here - the drivers are.
- thisisit 9y ago> but the restaurants aren't getting the short end of the stick here - the drivers are. Exactly. Drivers are getting the short end of the stick. Restaurants are affected but given the exposure they get, it might be worth it.