Many of us are trying to support local businesses, but some food delivery services can cut from a business's bottom line.
Delivery services charge from 20%-30% in commission for delivery, forcing restaurants to raise prices to cover commission costs.
USING A DELIVERY APP.BUT IT TURNS OUT...THOSE APPS CAN CUT INTO THERESTARUANTS' BOTTOMLINE.DELIVERY SERVICES CHARGEBETWEEN 20 AND 30 PERCENTCOMMISSION ON ORDERS.SOME RESTARUANTS HAVE INCREASEDPRICES...TO HELP COVER THE ADDITIONALCOST.LIKE ALEXA ALFARO...CO-FOUNDER OF A FILIPINORESTARUANT AND FOOD TRUCK:"MEAT ON THE STREET." SHESAYS DELIVERY APP FEES AREFORCING HER TO RAISE PRICES TOCOVER DELIVERY COMMISSIONS...AND KEEP STAFF EMPLOYED.THEY'RE ANYWHERE FROM 20 TO 33PERCENT.WHICH IS CRAZY.IT'S STILL CHEAPER THAN I THINKHIRING IN HOUSE DELIVERYSERVICES IN TERMS OF INSURANCECOSTSIN A STATMENT...GRUB HUB INPART SAYS: DELIVERYSERVICE IS OPTIONAL FORRESTRAUNTS.BUT THE COSTS ASSOCIATED WITHDELIVERY ARE NOT OPTIONAL.POSTMATES SAYS...COMMISSIONS ARE THE MAIN SOURCEOF REVENUE FOR OUR COMPANY ANDTHEY ARE PRIVATELY NEGOTIATEDAGREEMENTS WITH RESTARUANTS.AND UBER EATS REITERATES THATTHEIR SERVICE GIVESRESTRAURANTS DELIVERY SERVICEWITHOUT HAVING TO HIRE ADRIVER.CO