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 from last year’s levels, the companies say they expect people to order in more frequently than they did pre-pandemic.
Wonder why delivery orders have become more expensive during the pandemic? Want to know what share of your money restaurants are getting? Here’s a breakdown of several identical orders from the same New York City restaurant.
Why your prices are rising
In many markets, the price of food ordered via delivery app has gone up since the pandemic began. Since apps’ service fees are partly determined by food prices, that means a higher bill overall.
Other costs also fall on customers. In California, for example, apps began charging customers a fee related to benefits that they promised drivers. In Philadelphia, where the city capped the amount apps can charge restaurants during the health crisis, DoorDash is charging a “regulatory response fee.”
To illustrate this, The Wall Street Journal compared otherwise identical pre-pandemic and 2021 orders from three Philadelphia-area restaurants using DoorDash, Grubhub and Postmates. In each case, this year’s orders were more expensive.
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