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I have actually seen quite a few restaurants do this, where they use a third-party ordering system but then delegate to DoorDash/GrubHub for delivery. Is it may

I have actually seen quite a few restaurants do this, where they use a third-party ordering system but then delegate to DoorDash/GrubHub for delivery. Is it maybe because the delivery service gets a smaller cut in this case? I wonder if the total fees add up to a smaller number with the two middlemen than with only DoorDash/GrubHub. Presumably, the latter can charge more if they also handle the transaction as well as bring traffic, as opposed to only handling delivery.

adfuioqenasdf 6y ago
> Is it maybe because the delivery service gets a smaller cut in this case? Yes, this is correct. If you order from DoorDash directly, the restaurant will pay anywhere from 15-40% of the total transaction. Restaurants that have partnered with DoorDash for delivery logistics only will pay usually around $7 per order (this varies depending on geography and overall partner terms). However, the key difference is that this delivery fee is almost always passed on to the customer. So from a restaurant's perspective, they are getting a great deal: Delivery logistics for customers who want delivery, but if they're using a low/no commission direct ordering service, they keep (most of) the full order margin.
- tgel0 6y ago
  > Restaurants that have partnered with DoorDash for delivery logistics only will pay usually around $7 per order Did you mean 7 percent of the order perhaps?