3 ms·
> Why have all these restaurants signed up if 25% is so unfair? Here is my impression of the problem: Say the restaurant was taking $10 for each order, making
by raz32dust 6y ago
> Why have all these restaurants signed up if 25% is so unfair?
Here is my impression of the problem:
Say the restaurant was taking $10 for each order, making $3 in profit per order. i.e, cost is $7.
Before delivery apps:
100 orders/day. Total profit $300.
After delivery apps:
200 orders/day, cost $7, sale $7.5 (-25% fee), $0.5 profit per order. Total profit $150.
After delivery apps, if you don't sign up for the app and agree to their 25% fee:
50 orders (because people are mostly using the app now), total profit $150.
If true, it is a lose-lose for restaurants. Their profit margin is going down either way. On top of that their costs are likely going up, since they have to serve more orders.