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by prepend 1109 days ago
The article doesn’t say customers wouldn’t order directly from the restaurant.

I think that restaurants don’t want to hire their own delivery drivers and staff.

These Togo orders are basically “extra” that typically wouldn’t exist. And delivery companies know that. So it may be 30-50% of revenue but that’s in addition to what the restaurant would pull down as dine in only. Or just Togo where customers get it themselves.

I think there’s an opportunity for a more efficient Uber eats competitor that charges lower prices. But I think restaurants will just pay their fees.

In my area restaurants just keep jacking up their fees to cover commissions and people keep ordering. My favorite pizza place is $20 in person and $30 through Uber eats. They fired all their delivery people about two years ago.

People order McDonald’s for a $20 happy meal. So people just keep paying.

1 comments

I wonder if mixed electric vehicles will help. An e-bike is a totally different cost factor than a full fledged car. Just zip around on an electric scooter, bike, or moped for delivery and it is cheap.

I don't think delivery is necessarily "extra". It must be cannibalizing some people that come to the restaurant, and that means they don't order the most profitable items on the menu: drinks.

A delivery service that uses those modes of transport might actually be cheaper and superior to all involved than the current ones in sufficient density areas. A scooter, blade, or moped can quick-park on a sidewalk a lot more easily.

My wife is one of the people that sometimes orders $20 McDs when I'm on the road for my job. It drives me nuts. Twenty fucking dollars for some of the worst food in America.

That is basically the main source of transport for these food delivery people in Barcelona. They're everywhere. Easier to buy an ebike than a car and often faster in traffic and for parking etc.

Glovo is a very successful business here and not without controversy but they're rarely using cars.

Bigger pizza chains use mopeds which are also often electric. Less local pollution and less noise - all round just better.