Delivery Apps like Grubhub and DoorDash charge restaurants huge commission fees. Are delivery co-ops the solution?

The Grubhub model is here to stay. But community-based delivery services could be lifelines for small restaurants battling huge commission fees. During the pandemic, homebound Americans more than doubled their food delivery orders, largely through third-party apps like Seamless and UberEats. Covid-19 lockdowns may have hastened the apps’ growth, but economists have tracked a dramatic uptick in the use …

Delivery Apps Are Making Concessions to Restaurants. But Who Pays?

Nossa, a southern Brazilian restaurant in Los Angeles, opened in January when the city was still in lockdown. At that time, offering food to go was the only option, and director of operations Xandre Borghetti was happy to use big delivery companies to support the business’s launch. “During the pandemic, I was talking to every …

Chicago’s 15 Percent Delivery Fee Cap Extension Stalls

The effort to extend Chicago’s pandemic 15 percent cap on third-party delivery charges for restaurants stalled at Wednesday morning’s City Council meeting, but the measure could be approved next month. In November, city officials instituted a cap on fees that companies like DoorDash, Grubhub, and Uber Eats can require of restaurants as COVID-19 halted dining room service …

Grubhub launches commission-free platform for independent restaurants

Dive Brief: Grubhub on Wednesday unveiled Grubhub Direct, a platform that independent restaurants can use to create customizable ordering websites, manage customer relationships and access diner data including names, emails and order history, according to a press release. Additionally, the product suite consists of an ordering system where operators can receive, confirm and cancel orders through the …

Grubhub launches commission-free direct ordering platform for restaurants

Grubhub Direct will help restaurants launch their own ordering websites, loyalty program features, and give operators access to customer data Grubhub announced Wednesday the launch of Grubhub Direct: a commission-free direct ordering platform for operators that is designed to encourage restaurants to become more independent, particularly in the technology, delivery, and marketing spaces. The platform …

Why DoorDash and Uber Eats Delivery Is Costing You More

Diners and restaurants alike flocked to delivery apps in record numbers when the pandemic forced establishments to close their dining rooms. The surge in business has driven huge revenue growth for companies like DoorDash Inc., Grubhub Inc. and Uber Technologies Inc., which owns Uber Eats and Postmates. While the apps’ growth is expected to slow …

DoorDash Eliminates One-Plan-Fits-All Pricing Model

During a media event unveiling a reshaped commission structure for restaurants and other retailers, DoorDash COO Christopher Payne had a bold message for merchants on the company’s platform: “You’ll never have to pay 30 percent again if you don’t want to.” The company’s new three-tiered pricing model starts with the Basic plan that charges restaurants …

DoorDash Announces New Pricing Tiers for Restaurant Delivery

DoorDash, the food delivery app headquartered in San Francisco, announced today, April 27, that it’s changing its pricing for restaurants. Restaurants can now choose from three different plans, tiered at 15 percent, 25 percent, and 30 percent commission fees. DoorDash says it is making these changes in response to feedback from restaurants. But that 15 …

New fee structure at Doordash could cost customers more

Doordash is attempting to give restaurants more control over the fees it charges following widespread pushback by mom-and-pop restaurants over delivery-app economics. The food delivery company on Tuesday rolled out a new a la carte menu of services as it braces for more people to eschew takeout in exchange for sit-down dining. The new commissions …

DoorDash offers lower-priced delivery plans amid criticism

DoorDash is launching lower-priced delivery options for U.S. restaurants, responding to criticism that the commissions it charges are too high for the beleaguered industry. The San Francisco delivery company said Tuesday it will offer a new basic plan that will charge restaurants 15% per order for delivery, or around half the cost of previous plans. …