DOORDASH SAYS DELIVERY FEE CAPS ARE HURTING ORDER VOLUMES

DoorDash said Wednesday that limits on the fees it charges restaurants are hurting order volumes because it has forced the company to raise prices for consumers. In a blog post, the delivery provider reported that order volumes in March fell 7% in Philadelphia, 4% in St. Louis and 4% in Westchester County, N.Y., as a result of …

The Siren Call of Self Delivery

Self-delivery remains a tricky concept for the majority of restaurant operators. Many, especially independents, are reluctant to hire drivers, deal with the overhead and manage the technology layer necessary to give consumers what they’re used to from ecommerce. It was something we admittedly glossed over in our February exploration of the delivery balance sheet. For much …

DoorDash-Olo Lawsuit Draws Attention To Restaurant Delivery Economics

Restaurant aggregator and delivery service DoorDash is suing digital ordering solutions provider Olo for allegedly overcharging the company by millions of dollars over several years, the Financial Times reported on Wednesday (March 31). “Olo had been charging DoorDash fees that were greater than it was charging comparable delivery platform providers,” states a memorandum that DoorDash filed with New York’s Supreme Court on Tuesday (March 30). “For …

DoorDash pushes back against fee delivery commissions with new charges

OAKLAND, Calif.—For nearly a decade, Grand Lake Kitchen, across from picturesque Lake Merritt, where locals head for leisurely walks, had become a popular breakfast and brunch destination. So many visitors ordered the $14 avocado toast and the $11 vegetarian sandwich called the Kamala Llama — a nod to Oakland’s favorite daughter — that in 2018 it …

FOOD DELIVERY SERVICE SPREAD IS A RESTAURANT-FRIENDLY ALTERNATIVE TO SEAMLESS, GRUBHUB & DOORDASH

Food delivery apps were already taking off when the coronavirus pandemic began in early 2020 but cities full of people forced to stay home to avoid spreading COVID-19 pushed business for the likes of Seamless, DoorDash and Grubhub into the stratosphere. They—and apps like them—were, for some restaurants, the only way to stay even partially afloat without actual …

Colorado restaurant owners find creative ways around major delivery apps

Days before COVID-19 closed Colorado’s restaurants, Grammy’s Goodies hit the jackpot. The Wheat Ridge spot was featured on Food Network’s long-running “Diners, Drive-Ins and Dives,” a show which historically provides a boost to the restaurants it highlights. Host Guy Fieri called it “old school, American Italian, exactly the type of lasagna I’d expect to go …

Courier Collectives Are Combating Predatory Delivery App Practices

In the pandemic, delivery apps have been hugely popular, even as some of their practices drain profits from already-struggling restaurants. Courier collectives present a more worker-friendly option to get takeout. When Jon Poteet, owner of Shine Distillery & Grill in Portland, Oregon, first signed up for Grubhub last fall, he soon found his menu also …

DoorDash Takeout Price Markup

You can’t make this up. DoorDash just asked me to lower my takeout prices to assist in their attempts to improved their ‘elegant’ customer service experience. Here is our email exchange. I’m guessing they’ll start to come down on restaurants that have built price differentials into their DoorDash menus by burying us even deeper on …

Big Delivery Is Winning — Even If Everyone Hates It

On Super Bowl Sunday, 96 million people watched Big Bird and Daveed Diggs sing about the wonders of food delivery in a commercial for the delivery service DoorDash. The idea, per the ad’s song, is that it’s great to eat the food prepared by “the people in your neighborhood.” As part of the campaign, DoorDash also announced that …

Tired of exorbitant fees, Asheville restaurant takes delivery into its own hands

ASHEVILLE – Chai Pani Restaurant Group creative director Michael Files calls the big third party delivery apps “vultures.” The biggest, Uber Eats, aired a star-studded Super Bowl ad urging watchers to “eat local.” Dan Price, the Gravity Payments owner who took a paycut so his employees could start at $70,000, took the company to task on Twitter.  …