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What's annoying is when you try to order from an existing restaurant and notice they marked up their menu across the board for Uber Eats, then there's delivery

by ikeboy 8y ago

What's annoying is when you try to order from an existing restaurant and notice they marked up their menu across the board for Uber Eats, then there's delivery on top of that.

draw_down 8y ago
We call that “market segmentation”
wenc 8y ago
That's because Ubereats (and most food delivery platforms) take a huge cut (up to ~30%). Many low-margin restaurants wouldn't be able to survive without making that up somehow. I sometimes wonder why restaurants bother to list on food-platforms at all. Maybe they figure it's loss-leader marketing? Or perhaps being that food markups are usually in the ~50%, and drinks are several hundred percent, they can afford to make less?
- sharkmerry 8y ago
  UBer eats $500/sign up + 35% of orders Grubhub 27.5% if order comes from grubhub, it from restaurants website its 10% Eat24 - 25%
- ikeboy 8y ago
  Restaurants are low margin because of fixed costs and a limited number of customers for their fixed space. Delivery doesn't add to their fixed costs, and their gross margin is high. FTA: >For restaurateurs, it can be a chance to spread their fixed costs over a higher volume of orders.
  - wenc 8y ago
    Makes sense. Thanks.
- dannyw 8y ago
  35% in Australia. https://mobile.abc.net.au/news/2018-04-22/uber-eats-criticised-over-conditions-on-restaurant-owners/9662814 https://mobile.abc.net.au/news/2018-04-22/uber-eats-criticis...
  - jboles 8y ago
    Everything’s way more expensive in Aus, and not always with a good explanation why. It’s gotten better the past few years but Aus as always gotten reamed with a surcharge on anything tech related. Adobe was most famous, charging about 2x for the full Creative Suite. Apple too. At one point I emailed the CEO of the company I worked for at the time asking why Australia was charged 60% more for the same OS dvd, not even specialized for the market in any way (since all locales are built-in), and got a reply from an assistant about “taxes, supply chain, local markets” blah blah and wasn’t super convinced by the response. 10% for GST is fair but there’s no way shipping a container load of DVDs there, divided by the number of DVDs in the container, could possibly account for that difference. If not on price, then availability was also inconsistent. Netflix and the local broadcasters had to learn this themselves when people setup US based proxy accounts, or just plain said ‘fuck it’ and went to the Pirate Bay.

by ikeboy 8y ago

What's annoying is when you try to order from an existing restaurant and notice they marked up their menu across the board for Uber Eats, then there's delivery on top of that.

draw_down 8y ago

We call that “market segmentation”

wenc 8y ago

That's because Ubereats (and most food delivery platforms) take a huge cut (up to ~30%). Many low-margin restaurants wouldn't be able to survive without making that up somehow. I sometimes wonder why restaurants bother to list on food-platforms at all. Maybe they figure it's loss-leader marketing? Or perhaps being that food markups are usually in the ~50%, and drinks are several hundred percent, they can afford to make less?

sharkmerry 8y ago
UBer eats $500/sign up + 35% of orders Grubhub 27.5% if order comes from grubhub, it from restaurants website its 10% Eat24 - 25%
ikeboy 8y ago
Restaurants are low margin because of fixed costs and a limited number of customers for their fixed space. Delivery doesn't add to their fixed costs, and their gross margin is high. FTA: >For restaurateurs, it can be a chance to spread their fixed costs over a higher volume of orders.
- wenc 8y ago
  Makes sense. Thanks.
dannyw 8y ago
35% in Australia. https://mobile.abc.net.au/news/2018-04-22/uber-eats-criticised-over-conditions-on-restaurant-owners/9662814 https://mobile.abc.net.au/news/2018-04-22/uber-eats-criticis...
- jboles 8y ago
  Everything’s way more expensive in Aus, and not always with a good explanation why. It’s gotten better the past few years but Aus as always gotten reamed with a surcharge on anything tech related. Adobe was most famous, charging about 2x for the full Creative Suite. Apple too. At one point I emailed the CEO of the company I worked for at the time asking why Australia was charged 60% more for the same OS dvd, not even specialized for the market in any way (since all locales are built-in), and got a reply from an assistant about “taxes, supply chain, local markets” blah blah and wasn’t super convinced by the response. 10% for GST is fair but there’s no way shipping a container load of DVDs there, divided by the number of DVDs in the container, could possibly account for that difference. If not on price, then availability was also inconsistent. Netflix and the local broadcasters had to learn this themselves when people setup US based proxy accounts, or just plain said ‘fuck it’ and went to the Pirate Bay.