I’m pretty sure DoorDash is the one who increases the price on their end, not the business. And what’s more, they don’t separate the addition out. It’s rolled in to the cost of the item.
I’d be very curious what the conversation is between them. I highly doubt DoorDash negotiates with every restaurant on their platform and wouldn’t be surprised to discover they just tack it on independently. I could see that raising some interesting questions.
All of this is predicated on “ifs” and assumptions, so feel free to throw it out. Just kind of musing here lol
> I’m pretty sure DoorDash is the one who increases the price on their end, not the business
That is not correct. Doordash takes a 20-30% commission on each sale, so businesses preemptively increase the prices to offset that. They're not forced to and doordash isn't doing it for them. But, you know, they're still effectively "forced" to if their in-store prices don't have great margins to begin with...
Most of that money goes towards the driver, last I checked in on unit economics. It costs quite a bit of money to pay a person to go to the restaurant, wait around, and then bring it to you — far more than the "delivery fee" that you see and that customers would pay.
Customers are cheap and they're (partly) to blame. My theory is that Amazon conditioned people to view delivery as a free commodity and pizza places who had delivery baked into their model cemented it.
So if Doordash listed a delivery fee that covered their true cost of delivery, customers would balk. So they instead have to find creative ways to get enough. Maybe it's changed and Doordash cracked the secret, but when I'd looked into it years ago these companies barely got by — many of them actually losing money.
With pizza delivery you typically (should) tip the driver $5+ ($10+ for larger orders) so idk if that really tracks specifically, but I do largely agree that part of is people being cheap for one reason or another.
I know people who drove for DD and they roughly earn minimum wage ~$15/hr. You can easily deliver 2 orders in an hour. So I don't really buy that either.
I’m not sure I’m understanding your comment exactly so if this response is off let me know: I’m talking about traditional calling pizza in, not app delivery. At least when I was growing up that’s what we typically tipped.
I’d be very curious what the conversation is between them. I highly doubt DoorDash negotiates with every restaurant on their platform and wouldn’t be surprised to discover they just tack it on independently. I could see that raising some interesting questions.
All of this is predicated on “ifs” and assumptions, so feel free to throw it out. Just kind of musing here lol