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by Gaessaki 1388 days ago
That’s an incredible margin. Is this gross before paying out drivers or after?

The suggestion for a local payment processor is a good one. We have another processing entity here in Canada called Interac whose fees are considerably cheaper, though consumers don’t reap the benefits of credit since it’s debit.

I’ve also read about Uber’s efforts accepting cash payments which I found to be very interesting: https://www.uber.com/en-EE/blog/india-growth-cash-payments/
1 comments
Ayesh 1387 days ago
In Sri Lanka (where I currently live and run a bakery business), Uber and the local competitor both charge 30% from the shop. This is in addition to a (mostly) flat fee charged to the customer for delivery, and 100% of it goes to the driver. They take cash payments as well. The amount of cash payments the driver collected is deducted from his weekly payout.

To be fair amount the margin, the drivers are paid for completing 20, 50, 100, ... deliveries, which is the bigger portion of their income.

In Indonesia, Grab and Gojek both charge 20-30%, if I'm not mistaken. In Vietnam, Grab, Gojek, and Baemin all charge about the same too. I have lived in Indonesia and Vietnam, and have seen the very same shop marking up the delivery fee into the food. I imagine this is a common practice in Asia at least.

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wzwy 1387 days ago
> I see. One similar food delivery business I consulted at had a healthy (for the startup) margins at 30% from each order, so I suppose it's beefy enough to absorb some fraud.

Alright, cool, a consultant. And then…

> Sri Lanka (where I currently live and run a bakery business),

And suddenly a bakery business.

I wish my life one day would be as interesting as yours. HNers are quite interesting.

On topic, FoodPanda is another popular one I’ve seen in Asia. And yeah, the markup for all of them seems to be close to your stated range. Though, it seems that Grab’s delivery fee changes depending on the number of available drivers (motorcyclists?) unlike their competitors like FoodPanda which is static from my experience.

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Ayesh 1387 days ago
The bakery is mostly for the excitement, although it is turning profit so I'm not complaining. I'm only investing and and involved in a small level, with a chef and a manager I hired. But it was a wonderful experience arranging stuff from ovens and mixers to signboards and corrugated boxes, with all minor details in between.

Things tend to be cheap in Sri Lanka, and rent isn't really that expensive, so it was not that difficult to start the business.

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Ayesh 1387 days ago
@wzwy (because I can't reply to deeply nested comments I suppose).

The bakery is mostly for the excitement, although it is turning profit so I'm not complaining. I'm only investing and and involved in a small level, with a chef and a manager I hired. But it was a wonderful experience arranging stuff from ovens and mixers to signboards and corrugated boxes, with all minor details in between.

Things tend to be cheap in Sri Lanka, and rent isn't really that expensive, so it was not that difficult to start the business.

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