Delivery Platforms Need to Give Restaurants a Break

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Delivery Platforms Need to Give Restaurants a Break
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Apps like Grubhub and Uber Eats are still taking 30 percent commission fees per order. FWPro

But as restaurants are desperately figuring out how to survive the pandemic, major delivery platforms, like Grubhub , DoorDash , Postmates, and Uber Eats, are refusing to throw the restaurants a lifeline and instead remain engaged in what many chefs are calling “predatory” behaviors.

A 30 percent commission average is hard for owners to swallow, even during normal circumstances. “A lot of times these companies take 30 percent from restaurants that often only can afford 10 percent,” says Mogannam. But given the extraordinary situation the restaurant industry is finding itself in, the percentages are painful.

He breaks down the math on how much he might make per order in the current system. “Say I charge $13 for a schwarma sandwich and $1.99 to the customers to offset my delivery costs," he says. "I will maybe make $2 to $3 in profit at the end.” The company has also said it is going to launch “dedicated marketing campaigns—both in-app and via email—to promote delivery from local restaurants, especially those that are new to app.” DoorDash and Caviar announced on Tuesday that they are waiving the sign-up fee for new restaurants and will also waive commissions for 30 days. But the latter is for restaurants that are signing up for the platform for the first time.

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