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DoorDash appears very inexpensive when you have their DashPass product, however ive notice that basically every food service business will raise their menu pric

DoorDash appears very inexpensive when you have their DashPass product, however ive notice that basically every food service business will raise their menu prices, and grocery stores will restrict which items that allow you to buy. This is really interesting because if you have autonmous drivers, DoorDash doesnt really have a lever to lower prices except removing tipping.

ripply 1y ago
It appears inexpensive because raising prices is the only visibility you have into what the restaurant is paying these services for their order flows (~10-30%).
- darth_aardvark 1y ago
  The restaurant doesn't choose the prices DoorDash displays, DoorDash does.
  - 5555624 1y ago
    Are you sure about that? I thought the restaurant does. On DoorDash's Help page (https://help.doordash.com/merchants/s/article/How-to-Maximize-Visibility-and-Order-Volume-on-DoorDash?language=en_US https://help.doordash.com/merchants/s/article/How-to-Maximiz...) There's a quote: "To provide a high-quality experience for all of our customers, we set prices on DoorDash the same as our in-store prices. DoorDash even enables operators to set different pricing for delivery and pickup, but a core part of us providing high-quality customer service is accomplished through our consistent menu pricing." - Manuel Bucio, Owner, Razpachos" That seems to indicate the restaurant sets the prices.
  - paxys 1y ago
    You really think Doordash sets individual prices for each dish for the half million restaurants that it lists on its service? It is a simple platform. The restaurant sets up and manages its own menu, and Doordash takes a cut of the final sale.
    - LunaSea 1y ago
      Based on the fact that other platforms like GrubHub hijacked Google Places registrations for restaurants and also presented menus of non-customer restaurants in the platform, yes, I would not be surprised at all if that type of shenanigans were going on at DoorDash as well.
parhamn 1y ago
I'm surprised that's not illegal, and I think states will pass laws to fix this. In my area, an &Pizza is $12 on their App, $19 on Doordash (delivery or pickup). A Chipotle burrito is $9.50 vs $12.35 on doordash delivery (plus every addon is a $1 more expensive). You can easily pay an extra $4/$5 (30%) per item you order on there.
- infecto 1y ago
  Why should it be illegal? Makes no sense to me. As long as the business is not discriminating based on class it should be ok.
  - jchw 1y ago
    What I personally dislike about this is that it hides the cost of Doordash. It's not intuitive that the prices of items is silently higher on Doordash: it's not like online retailers having different prices for the same SKU, it's the same restaurant. I'd prefer the overhead to show up as its own line item, rather than obscuring the actual cost of the service. I have a feeling less people would choose to Doordash as often if they realized just how much more things cost through it. (Not everyone, but, there are a lot people who really do just do it for convenience, and they could just drive and go pick up their own takeout.)
    - chronci739 1y ago
      > I'd prefer the overhead to show up as its own line item, rather than obscuring the actual cost of the service. While that’s what you prefer, the market (most other users, including whale spenders) doesn’t care to know the actual cost.
      - bitdivision 1y ago
        I don't think that's true, however doordash surely know that some users might think twice if they saw that number separated out.
      - 1y ago
AnotherGoodName 1y ago
Doordash itself appears to add at least $1 to all menu items. Which is horrible for certain restaurants that do à la carte. Eg. My local indian place ends up with doubled/tripled prices on Doordash. Eg. Papad = $0.49 each directly from my local Indian restaurants site (they sell by the single), Doordash gives a price of $1.50 per papad. Likewise with Naans, dips, etc. All have $1 added. Which can make a $10 lunch ~ $25. I believe it's Doordash doing this. What gets really weird is Uber Eats and Grubhub seem to match prices and charge exactly the same as Doordash. For anyone to repeat this. Look up your local indian places actual menu. You'll likely need to use Google images for the name of the restaurant to find an actual picture of a physical menu. Now look up any of the online services, they all seem to price match each other and they'll all have doubled prices for things like naan or roti.
- hypeatei 1y ago
  > I believe it's Doordash doing this Restaurants set the menu prices higher on delivery platforms to recoup the money lost in fees. They also pay fees to DoorDash, Uber, etc...
- walterbell 1y ago
  > Uber Eats and Grubhub seem to match prices and charge exactly the same as Doordash. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/dealings-competitors/price-fixing https://www.ftc.gov/advice-guidance/competition-guidance/gui... Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels. Generally, the antitrust laws require that each company establish prices and other competitive terms on its own, without agreeing with a competitor. When purchasers make choices about what products and services to buy, they expect that the price has been determined on the basis of supply and demand, not by an agreement among competitors. When competitors agree to restrict competition, the result is often higher prices.
  - potato3732842 1y ago
    Unfortunately, you're not gonna successfully nail a BigCo with a legal team using an "inferred from conduct" clause. That's the kind of thing your municipal or state enforcers use to threaten a peasant into settling.

ripply 1y ago

It appears inexpensive because raising prices is the only visibility you have into what the restaurant is paying these services for their order flows (~10-30%).

darth_aardvark 1y ago
The restaurant doesn't choose the prices DoorDash displays, DoorDash does.
- 5555624 1y ago
  Are you sure about that? I thought the restaurant does. On DoorDash's Help page (https://help.doordash.com/merchants/s/article/How-to-Maximize-Visibility-and-Order-Volume-on-DoorDash?language=en_US https://help.doordash.com/merchants/s/article/How-to-Maximiz...) There's a quote: "To provide a high-quality experience for all of our customers, we set prices on DoorDash the same as our in-store prices. DoorDash even enables operators to set different pricing for delivery and pickup, but a core part of us providing high-quality customer service is accomplished through our consistent menu pricing." - Manuel Bucio, Owner, Razpachos" That seems to indicate the restaurant sets the prices.
- paxys 1y ago
  You really think Doordash sets individual prices for each dish for the half million restaurants that it lists on its service? It is a simple platform. The restaurant sets up and manages its own menu, and Doordash takes a cut of the final sale.
  - LunaSea 1y ago
    Based on the fact that other platforms like GrubHub hijacked Google Places registrations for restaurants and also presented menus of non-customer restaurants in the platform, yes, I would not be surprised at all if that type of shenanigans were going on at DoorDash as well.

parhamn 1y ago

I'm surprised that's not illegal, and I think states will pass laws to fix this. In my area, an &Pizza is $12 on their App, $19 on Doordash (delivery or pickup). A Chipotle burrito is $9.50 vs $12.35 on doordash delivery (plus every addon is a $1 more expensive). You can easily pay an extra $4/$5 (30%) per item you order on there.

infecto 1y ago
Why should it be illegal? Makes no sense to me. As long as the business is not discriminating based on class it should be ok.
- jchw 1y ago
  What I personally dislike about this is that it hides the cost of Doordash. It's not intuitive that the prices of items is silently higher on Doordash: it's not like online retailers having different prices for the same SKU, it's the same restaurant. I'd prefer the overhead to show up as its own line item, rather than obscuring the actual cost of the service. I have a feeling less people would choose to Doordash as often if they realized just how much more things cost through it. (Not everyone, but, there are a lot people who really do just do it for convenience, and they could just drive and go pick up their own takeout.)
  - chronci739 1y ago
    > I'd prefer the overhead to show up as its own line item, rather than obscuring the actual cost of the service. While that’s what you prefer, the market (most other users, including whale spenders) doesn’t care to know the actual cost.
    - bitdivision 1y ago
      I don't think that's true, however doordash surely know that some users might think twice if they saw that number separated out.
    - 1y ago

AnotherGoodName 1y ago

Doordash itself appears to add at least $1 to all menu items. Which is horrible for certain restaurants that do à la carte. Eg. My local indian place ends up with doubled/tripled prices on Doordash. Eg. Papad = $0.49 each directly from my local Indian restaurants site (they sell by the single), Doordash gives a price of $1.50 per papad. Likewise with Naans, dips, etc. All have $1 added. Which can make a $10 lunch ~ $25. I believe it's Doordash doing this. What gets really weird is Uber Eats and Grubhub seem to match prices and charge exactly the same as Doordash. For anyone to repeat this. Look up your local indian places actual menu. You'll likely need to use Google images for the name of the restaurant to find an actual picture of a physical menu. Now look up any of the online services, they all seem to price match each other and they'll all have doubled prices for things like naan or roti.

hypeatei 1y ago
> I believe it's Doordash doing this Restaurants set the menu prices higher on delivery platforms to recoup the money lost in fees. They also pay fees to DoorDash, Uber, etc...
walterbell 1y ago
> Uber Eats and Grubhub seem to match prices and charge exactly the same as Doordash. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/dealings-competitors/price-fixing https://www.ftc.gov/advice-guidance/competition-guidance/gui... Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels. Generally, the antitrust laws require that each company establish prices and other competitive terms on its own, without agreeing with a competitor. When purchasers make choices about what products and services to buy, they expect that the price has been determined on the basis of supply and demand, not by an agreement among competitors. When competitors agree to restrict competition, the result is often higher prices.
- potato3732842 1y ago
  Unfortunately, you're not gonna successfully nail a BigCo with a legal team using an "inferred from conduct" clause. That's the kind of thing your municipal or state enforcers use to threaten a peasant into settling.