Santa Monica caps food delivery app fees for restaurants

Santa Monica will join several cities across the country in limiting the fees that food delivery apps can charge restaurants. Restaurants have been serving takeout and delivery exclusively for the last two months with the help of third-party delivery apps, which charge a sizable commission on each order. Many restaurants that grudgingly accepted a 20% […]

Silicon Valley Invents “The Free Lunch” – The Doordash-Pizza Arbitrage

Authored by Ranjan Roy via The Margins substack, If capitalism is driven by a search for profit, the food delivery business confuses the hell out of me. Every platform loses money. Restaurants feel like they’re getting screwed. Delivery drivers are poster children for gig economy problems. Customers get annoyed about delivery fees. Isn’t business supposed to […]

Food delivery with third-party apps like Grubhub and Uber Eats is booming, but no one’s making money. Here’s why their business is broken.

New York just passed a temporary 15% cap on third-party delivery commissions and a limit of 5% on marketing contributions and other related fees. And Uber Eats, which just made a bid to buy Grubhub, is locked in a bitter feud with Jersey City Mayor Steve Fulop. Food delivery is booming during the pandemic, and […]

Grubhub Reports 24% Jump in ‘Active Diners,’ but $33 Million Net Loss

Food delivery service Grubhub (NYSE:GRUB) is recovering slightly today after being down more than 12.5% in trading yesterday following its first-quarter 2020 results. Though the pandemic made home delivery soar across the industry, Grubhub posted a net loss of $33.4 million for the quarter, a sharp drop from the $6.9 million in net income it reported in Q1 2019. The […]

4 third-party food delivery services come out against Jersey City directive limiting fees

DoorDash, Grubhub, Postmates, and Uber Eats have come out against a Jersey City order that would not allow third-party food delivery services to earn more than 10 percent in fees, calling the measure “misguided and potentially disastrous.” “The extreme executive order issued today in Jersey City to limit the amount that restaurants pay to offer […]

The Grubhub conundrum: Restaurants wrestle with the high costs of third-party delivery services

Pierogi Mountain cited the cost of doing business with third-party delivery services in its recent decision to temporarily close up shop, and other restaurants have expressed similar frustrations with the financial model as delivery orders continue to dominate amid COVID-19 shutdownsIn late April, Pierogi Mountain announced it would temporarily close, citing the frequency of shopping […]

Boston, D.C., and Baltimore Join the List of Cities That Want Caps on Third-party Delivery Fees

Baltimore, Boston, and Washington, D.C. all recently joined the growing list of cities imposing mandatory caps on the commission fees third-party delivery services charge restaurants. San Francisco, Chicago, NYC, and Los Angeles have already passed similar measures or are considering them. The D.C. Council passed emergency COVID-19 legislation on Tuesday that, among other things, capped commission fees at […]

PIZZA BUSINESS OWNER SHARES HARSH REALITY BEHIND FOOD DELIVERY APPS

uring the COVID-19 pandemic, many stores without an internal delivery service have turned to apps including Grubhub, DoorDash, Postmates or UberEats, providing them access to an online store and a vast network of drivers, but at what cost? Giuseppe Badalamenti, a consultant and owner of small business Chicago Pizza Boss, published a picture he claimed […]

GrubHub, Doordash Accused in Suit of Pushing Prices Higher

As millions of Americans are confined in their homes amid a pandemic, hard-hit restaurants are being forced to charge higher prices to meet the demands of food delivery services, according to a lawsuit. A group of New Yorkers sued GrubHub Inc., DoorDash Inc., Postmates Inc. and Uber Eats, accusing them of using their market power to […]

Grubhub comes under fire for high fees, bad drivers and some Chicago restaurants are dropping it

As you’ve probably heard a hundred times, now is not a good time for restaurants. To contain the spread of the coronavirus, dining rooms in Illinois are closed, which means that restaurants must now rely on pickup or delivery. For many establishments, that means that their customers are spending even more time engaging with food […]