Why DoorDash and Uber Eats Delivery Is Costing You More
08 Maggio 2021 - 11:59AM
Dow Jones News
By Stephanie Stamm, Preetika Rana and Heather Haddon
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.
Why that delivery burrito is more expensive
Many restaurants -- including big chains -- are encouraging
more-profitable pickup orders and raising delivery menu prices on
apps.
Chipotle Mexican Grill Inc. said in April that its delivery
prices now average 17% higher than those in stores. Similarly, Del
Taco Restaurants Inc. raised delivery prices by around 20% last
year to improve margins and is testing further increases.
Restaurants believe that customers who want the convenience of
delivery will keep paying for it. Many are investing in pickup and
drive-through services to make those options more appealing.
Yasufumi Saito contributed to this article.
Write to Stephanie Stamm at Stephanie.Stamm@wsj.com, Preetika
Rana at preetika.rana@wsj.com and Heather Haddon at
heather.haddon@wsj.com
(END) Dow Jones Newswires
May 08, 2021 05:44 ET (09:44 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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