4 ms·
You assume these companies are just throwing random costs at things because they can. I assure you they've A/B tested the hell out of what will maximize usage.
by jarjoura 7y ago
You assume these companies are just throwing random costs at things because they can. I assure you they've A/B tested the hell out of what will maximize usage. Turns out, the population is cheap AF. Imagine, in a consumer pays the cost model, they see DoorDash charges $10 for this delivery, on a $15 meal, instead of today seeing $3.99 delivery fee, $1 service fee, and then on the back end charges the restaurant $5 from the $15 item.
That doesn't even account for the driver fee that brought you the food. So if you really want to be fair and charge the customer, you're looking at $15 on a $15 meal. Consumers would most definitely reject that.
The reality is these high end delivery services cost a ton to run and they've come up with clever ways to obfuscate the real cost to avoid being punished in the market. I 100% support what SF is trying to do here, but honestly, this is no different than what cell phone companies and cable operators have been doing for the last 20 years. It'll take an active investigation from the FTC to change their ways and I hope we see that followed up on at some point.