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Even the subtitle of this article basically enforces that fact: > Why is my $8 burger $23 after fees - An average reddit user As you say, it's a private taxi

Even the subtitle of this article basically enforces that fact: > Why is my $8 burger $23 after fees - An average reddit user As you say, it's a private taxi for your burrito. When you factor in the labor costs, gas/car maint costs, and the amortized cost of providing the service, it's hard to see why anyone would think $15 for an on-demand delivery in a major urban area is abnormal.

kgdiem 1y ago
Here’s something WiLd and crazy — “in town” or “in range” delivery used to be free in major urban areas, and you’d tip the delivery driver $2-5.
- lysace 1y ago
  We had a variant of that for pizza in Sweden around 2000-2010: Free delivery from an online order and no tips expected. Literally the same price for the pizza for in store take away or home delivery. Always wondered if that was tax or immigration fraud (pay-to-work schemes). Or both.
  - nickff 1y ago
    Most pizza restaurants are built around the delivery cost-structure. They locate off main streets, they have a small front-of-house relative to kitchen size, and they have relatively low ingredients costs. They save money on both real estate and taxes, and use those savings to pay for drivers who deliver multiple orders per trip. Other restaurants just aren’t optimized for the delivery business, so it’s more expensive per serving for the customer (no matter who is doing the delivery).
otabdeveloper4 1y ago
Food delivery in a car seems to be a purely American aberration. Literally everyone else uses more efficient methods. (E-bikes or whatever.)
n4r9 1y ago
I still find it hard to see. Urban areas should have a high density of orders and a low number of miles per delivery trip. I asked Claude AI to run a marginal cost analysis of food delivery, taking driver salaries etc.. into account and separately considering third-party platform vs restaurant direct. The answer came out at around £2 per order (in the UK). The artefact is published here for anyone to view: https://claude.ai/public/artifacts/4827ebef-9208-4cdb-8e9c-74b86bb64991 https://claude.ai/public/artifacts/4827ebef-9208-4cdb-8e9c-7... I got it to rerun the analysis for the US and it's pretty much the same: https://claude.ai/public/artifacts/5b56e048-7af7-4b6c-8054-59e42c38741e https://claude.ai/public/artifacts/5b56e048-7af7-4b6c-8054-5... My suspicion is that apps like Deliveroo, Uber Eats etc.. are ramping up their prices now that they have moats and market share.

kgdiem 1y ago

Here’s something WiLd and crazy — “in town” or “in range” delivery used to be free in major urban areas, and you’d tip the delivery driver $2-5.

lysace 1y ago
We had a variant of that for pizza in Sweden around 2000-2010: Free delivery from an online order and no tips expected. Literally the same price for the pizza for in store take away or home delivery. Always wondered if that was tax or immigration fraud (pay-to-work schemes). Or both.
- nickff 1y ago
  Most pizza restaurants are built around the delivery cost-structure. They locate off main streets, they have a small front-of-house relative to kitchen size, and they have relatively low ingredients costs. They save money on both real estate and taxes, and use those savings to pay for drivers who deliver multiple orders per trip. Other restaurants just aren’t optimized for the delivery business, so it’s more expensive per serving for the customer (no matter who is doing the delivery).

otabdeveloper4 1y ago

Food delivery in a car seems to be a purely American aberration. Literally everyone else uses more efficient methods. (E-bikes or whatever.)

n4r9 1y ago

I still find it hard to see. Urban areas should have a high density of orders and a low number of miles per delivery trip. I asked Claude AI to run a marginal cost analysis of food delivery, taking driver salaries etc.. into account and separately considering third-party platform vs restaurant direct. The answer came out at around £2 per order (in the UK). The artefact is published here for anyone to view: https://claude.ai/public/artifacts/4827ebef-9208-4cdb-8e9c-74b86bb64991 https://claude.ai/public/artifacts/4827ebef-9208-4cdb-8e9c-7... I got it to rerun the analysis for the US and it's pretty much the same: https://claude.ai/public/artifacts/5b56e048-7af7-4b6c-8054-59e42c38741e https://claude.ai/public/artifacts/5b56e048-7af7-4b6c-8054-5... My suspicion is that apps like Deliveroo, Uber Eats etc.. are ramping up their prices now that they have moats and market share.