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Wait. So delivery apps pay restaurants 25% less for their food. Don't they also charge customers more for the food, even before they add on service fees, delive
by onlyrealcuzzo 6y ago
Wait. So delivery apps pay restaurants 25% less for their food. Don't they also charge customers more for the food, even before they add on service fees, delivery fees, and a tip?
At least this is what I've seen recently. I look at a restaurants menu, and it will have a dish for $9. When I try to order it, Postmates & Uber Eats say the same thing is $14 (though they both agree on the price). This isn't just one restaurant. This is most restaurants I've checked in Pittsburgh.
In this example, I would probably never go to the restaurant for the $14 meal. I'd go once a week for the $9 meal. This seems bad for consumers because it's tricking you on how much the food costs and how much delivery costs.
- vorpalhex 6y ago> So delivery apps pay restaurants 25% less for their food. No, delivery apps charge you extra and pretend it's part of the restaurant cost. If you can buy your burrito at the restaurant for $8, the delivery service is going to show you a price of $10 on the order screen (and add in their $4 delivery fee, etc).
- jagger27 6y agoThis is only half true. Uber in particular has a loose rule that says any prices you display online have to match what's posted on Uber Eats. I say it's loose because restaurants just raise their prices on Uber Eats anyway and not post their full menu prices online. Citation: my family runs a restaurant that has slightly higher prices on Uber Eats despite the rule against it. It wasn't Uber that set those prices though, it was us. It still doesn't fully offset the 30% haircut we're taking though.