Opinion: Customers and delivery drivers both receive the short end of the stick as the multi-billion dollar market continues to grow.
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The food delivery industry rapidly expanded in the past decade and the pandemic contributed to this, more than doubling the market in the United States. With a global market worth around $150 billion, much of the U.S. population has used DoorDash, Grubhub, Postmates or Uber Eats at least once. However, I can confidently say that delivery apps are flawed in countless ways.
In a survey by Circuit, nine out of ten customers have had a food delivery order go wrong. Some received their order past the expected delivery time, resulting in cold food. Others had their order canceled at the last minute. I’ve experienced the extreme where my driver stole my food — multiple times.
Besides how the inefficiency makes my blood boil, the cost of delivery is outrageous. Delivery platforms make their revenue through five methods: restaurant commission fees; customer delivery fees, ranging from $2 to $5 per order; customer-service fees; in-app advertising, and driver tips. All of these fees make a $10 order add up to $25 in the blink of an eye.
To add to the large cost, customers don’t realize delivery apps charge up menu items. You heard me right, prices are higher on delivery platforms than on the actual menu. For example, Grubhub lists a Big Mac Meal as $10.10, compared to the restaurant price of $8.75. That’s a 13% upcharge.
Unfortunately, the grass isn’t greener on the driver’s side of food delivery. I worked as a Doordash driver during the pandemic. As an 18-year-old, I quickly learned that the delivery service was corrupt.
Delivery platforms’ revenue is incomparable to the drivers’ pay. According to DoorDash, their base pay ranges from $2 to $10. In reality, most orders are $6. This forces drivers to rely heavily on tips. Yet most customers don’t tip dashers due to the already overwhelming fees. By the end of a workday, the gas mileage roughly breaks even with revenue, resulting in little-to-no profit.
Doordashing as a young woman also prompted many safety risks. Delivery services often lead their drivers to distant locations. There were numerous occasions when I ended up in sketchy areas in the dark with no phone service. There were other times when older men texted me after completing the order saying, “You’re so beautiful.” Ultimately, your age and gender are irrelevant — delivery jobs are dangerous.
My last issue with the delivery service is the blame game. In a survey, 59% of respondents admitted to confronting their drivers in the event of poor delivery. If a dasher acts irresponsibly, that’s on them. However, there are outside factors most of the time, such as the restaurant running late or a far delivery distance. Drivers are independent workers receiving below minimum wage; they deserve respect.
So the food delivery industry is insufficient… now what? Addressing the delivery platforms is the first step. DoorDash, Grubhub, Postmates and UberEats are all markets that have fallen to capitalism. They operate for themselves, rather than serving their employees and customers. Christopher Payne, then-DoorDash COO — now president — told the Wall Street Journal, “This is a cost-intensive business that is low-margin and scale driven.” Their main focus is to grow and improve profit margins.
Restaurants risk losing loyal customers from poor delivery experiences. In response, restaurants have begun adopting online menus and QR codes. To avoid overpriced food and driver exploitation, consider ordering directly from a restaurant. Call for take-out, or maybe eat there and throw in an extra tip for the server. Delivery platforms have a long journey before they earn customer loyalty.