Food-Delivery Apps vs. Restaurants: The Covid Divide | WSJ

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  • čas přidán 26. 02. 2021
  • Demand for food delivery has soared amid the pandemic, but restaurants are struggling to survive. In a fiercely competitive industry, delivery services are fighting to gain market share while facing increased pressure to lower commission fees and provide more protection to their workers. Video/Photo: Jaden Urbi/WSJ
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Komentáře • 271

  • @Taransidhu21
    @Taransidhu21 Před 3 lety +146

    Seeing an equity research analyst doing actual work to deliver food instead of staring at just Excel numbers and company materials kind of amazed me

    • @jathebest2835
      @jathebest2835 Před 3 lety +4

      What a world..lol

    • @n0ret82
      @n0ret82 Před 3 lety +4

      Food delivery: "I am actual work"
      Number crunching and data analysis: "Am I a joke to you?"

  • @kinw5648
    @kinw5648 Před 3 lety +196

    I loved how convenient these food apps are until I realized how much they take from the business themselves. I've stopped using these delivery apps unless I have to. It's hurting the small restaurants when they take so many percent of the sale. I'll support the local restaurants by ordering and picking up myself. I also end up saving about $15-$20 each meal when I order and pick up directly from the restaurant.

    • @sakenu16
      @sakenu16 Před 3 lety +7

      Agree, don’t want to shame the apps because I mean they also have people working for them trying to make ends meet. But yeah enough people use them I prefer to do the same just order, wear a mask and pick it up myself. If I have to I’ll wear a face shield but trying to support these local businesses and their staff.

    • @hudheifaomar4650
      @hudheifaomar4650 Před 3 lety +20

      Most restaurants have higher prices on delivery apps so I'm pretty sure customers end up paying for the app fees and not restaurants

    • @jackjackthompson5771
      @jackjackthompson5771 Před 3 lety +3

      Clearly you don’t live in a society with a curfew where it’s the only alternative

    • @andij3124
      @andij3124 Před 3 lety +5

      there’s more to it than meets the eye. it’s actually saving restaurants money and helping riders earn. merchants reduce their expenses in labor and dont have to pay for their riders who have to wait for orders. Riders also get to keep taking orders thus earn extra/more cash. Same goes to customers, saves you from driving or paying for parking. If I was a restaurant owner, why not invest your money to these delivery platforms who are more incentivized to bring you customers through their in-app marketing.

    • @oldtwinsna8347
      @oldtwinsna8347 Před 3 lety +6

      But they bring business the food service provider would never otherwise receive. The apps are huge marketing tools that are dirt cheap when compared to other forms of advertising (commercials, direct mail, etc). They allow the food service provider to be a much cheaper location that isn't on the main drag ($$) since they don't need to have street level presence to bring customers in. Retail and services sector are all about marketing else you are going no where, no matter what your product or service is. The holy grail is achieving incredible positive word of mouth but that can take many years, decades, even when you do it all properly and correct. Businesses that achieve this status don't need to do anything more and can and do decline to take on more customers because they have more than enough to service. 99.99% of the food services you see on these platforms has not achieved that status.

  • @amutah8063
    @amutah8063 Před 3 lety +92

    Most restaurants have higher prices on delivery apps so I'm pretty sure customers end up paying for the app fees and not restaurants.

    • @dannnyyang
      @dannnyyang Před 3 lety

      technically true but uber policy say they have to be the same but most restaurants don’t care lol

    • @saretgnasoh7351
      @saretgnasoh7351 Před 3 lety +1

      Yeah, the customer lose, not the restaurant owner.
      It's part of the cost that customer paid, why bother

    • @NhiNguyen-tj4co
      @NhiNguyen-tj4co Před 3 lety

      yeah, 35% commission fee + any VAT from the total order value. Because Deliveroo, as the middle man is not the "final" producer of the product. So yeah, do your math, and that's why restaurants don't like delivery apps. They can't just increase the price by 1.5 times to cover the delivery costs. The only one who doesn't have anything to lose here is the delivery platform, as they receive money from both ends of the chain, the restaurants and the customers, without paying a dime in VAT (which is usually a very big chunk of the deal), especially in the UK, where prices must be VAT included (if you see the prices on the menu, it usually means the final price excl. delivery fee)

    • @NhiNguyen-tj4co
      @NhiNguyen-tj4co Před 3 lety +2

      So no, the customers don't pay for the whole delivery fee, usually medium to small restaurants have to pay 50%-75% of the delivery fee to compete with the big chain (that is excluding inside deals where they could increase the big chain rating overnight).
      Also very conveniently, Deliveroo usually offers a much lower commission fee deal for the big chain (10%) and a higher commission fee (35%) for medium and small businesses. So if you want to support your local business, purchase from them directly

  • @Keolalaulani
    @Keolalaulani Před 3 lety +70

    A lot of delivery services charge an extra $10 on average in service fees. You can literally save $15-$20 off your order by ordering pick up/takeout. Doordash is trash, Post Mates is trash, and so is Uber Eats. If you’re really into saving money, cooking your own food can save hundreds of dollars a month.

    • @CatchEmCouple
      @CatchEmCouple Před 3 lety +4

      I do see your point but you also got to consider of how within this world time to cook is no more. It is stated that around 50% of Americans in the USA has ordered food more than one time and will grow more over the years.

    • @ManOfSteel1
      @ManOfSteel1 Před 3 lety +5

      Home cooked food will always be healthy, money comes afterwards!!!

    • @CatchEmCouple
      @CatchEmCouple Před 3 lety +2

      @@ManOfSteel1 I do agree with you on Home cooked food is always healthy but as I mention before more and more Americans are ordering out because they do not have time to sit down and cook. Data has shown that more than 50% of Americans alone order more than 2 times within a week. Food delivery itself is estimated to be worth 1T in Market Value within 2030.

    • @CatchEmCouple
      @CatchEmCouple Před 3 lety +2

      @@julm7744 Again that just depends on the person and where he wants to put his or her time in. You can't get upset with that. And if you are getting upset with that then that's kinda sad to do so.

    • @katv3116
      @katv3116 Před 3 lety +4

      I stopped using delivery apps when a delivery driver couldn't follow instructions and what sucks is that you have to put in a tip beforehand and I gave him a 20% tip. My instruction was to not ring the doorbell or knock. What does this guy do? Bang at my door then hands me my food then puts out his hand for the tip... 🙃🤨 ugh I wish I could take my money back for that

  • @yass123
    @yass123 Před 3 lety +79

    Do not use these apps. They're slowly killing small business.
    I had a small fast food business they used these apps for a couple of years.
    You gotta pay commission, processing and phone fees.
    We had a $10 minimum on orders, but they included tax, and tip. So, we're already in the minus before these apps take a cut.
    Calculate all that and include everything else that comes with running a small business and you see where I'm going.

    • @TomsDone
      @TomsDone Před 3 lety +14

      Simple solution: if the customer wants delivery they pay the whole fee, so the amount the restaurant gets is unchanged. Also, if the customer sees and pays the whole delivery fee then these companies will find they have to compete by lowering their take - so they compete on price rather then marketing.

    • @w1ndache
      @w1ndache Před 3 lety +13

      If you are in the minus for every order your restaurant is doing something wrong whether it's pricing or cost. They are not forcing your restaurant to use these services, you can just leave the platform and see how you go in a pandemic without delivery.

    • @sanansa4567
      @sanansa4567 Před 3 lety +5

      @yass123 I have NO mercy for restaurants that fail, if they are too cheap to hire food delivery drivers and leave it up to the customer to deal with the headache and extra expense of using the APPS. I live in the surburbs there is no way any restaurant owner is going to convince me they can find people willing to work as drivers. And most customers are within 3 miles. they could buy a cheap used car to do local deliveries, but many of the restaurant owners are just very stubborn.

    • @zzm2405
      @zzm2405 Před 3 lety +4

      @@w1ndache the problem is the market, if all yours competitors are on the platform, you have to be there, even if the fees are 35%+taxes, otherwise you’re gonna lose many potential customers

    • @w1ndache
      @w1ndache Před 3 lety +5

      @@zzm2405 my original point was that it's not the app's fault that restaurants are in terrible condition. In fact the delivery apps helped countless restaurants survived the pandemic. And of course if it wasn't for the pandemic we would all better off.

  • @tilltheend17
    @tilltheend17 Před 3 lety +24

    Specifically dine in services are at risk since the pandemic. I’m a lead in the kitchen at a Chick-fil-A and have seen a rapid growth in sales that more than surpassed our expectations due to covid. All while surrounding restaurants struggled to keep their doors open. I would say Chick-fil-A has a unique advantage due to its strong focus on the efficiency of the drive thru

    • @OlJackBurton
      @OlJackBurton Před 3 lety +3

      That's because a fast food restaurant can survive on mostly drive through and carry out, if there are enough customers, because they already have the design in place for it. A sit down restaurant or a fine dining restaurant can't just add a drive through, or an assembly line type system for high volume. Disposables are also much more expensive and wasteful at fine dining restaurants. Also drink/alcohol sales are usually lost as well as desserts, appetizers/sides and all tip revenues for a large number of workers when dine in services are curtailed. So, the restaurant will have to find other sources of revenue (PPP can't go on forever) to pay many of their workers, who still have to work despite the lack of dine in customers.
      I also bet that most people in the drive through and picking up are doing it themselves and supporting Chick-fil-A and not using a delivery app. If a large percentage of those people used the apps and didn't pick the food up themselves, even with the growth in sales, Chick-fil-A would lose a ton in profits, since the delivery apps take 35% of all sales revenue. No matter how good Chick-fil-A is doing, i bet they are at nowhere near 35% profit margins. However, i do commend Chick-fil-A's minimum wage of $17 an hour, even years before the pandemic...

  • @Peachmanlove
    @Peachmanlove Před 3 lety +25

    Solution is simple. Pass the fees to the consumer. This has been the case in the Philippines and other South East Asian countries with Grab.
    If you dont want to pay the extra 30%, then consumers can drive to the restaurant. You use these delivery services for their convenience so it is just logical to pay for such.

    • @tomi1455
      @tomi1455 Před 3 lety +2

      true,same here in indonesia, you pay a bit more if you ordering food via delivery service like gojek and grab here.

    • @dagonxanith686
      @dagonxanith686 Před 3 lety

      In my area if I order food for 30 to 40 dollars I pay double that in fees. So my total bill is 60 to 80, plus I don't own cellphone just landline so last few times I used it they literally can't even seem to figure out how to call so I don't get the food. I am not going to spend more for cellphone just to order food. If I use grubhub for pick up, they cancel my payment and I had to go back and pay the restaurant.

    • @kev7161
      @kev7161 Před 2 lety

      @@dagonxanith686 If you go out to a restaurant, there's a good chance you'll buy drinks, appetizers, desserts, or some other extra item. Most people will likely tip their server, bartender, or someone else working there. A typical tip these days is about 20%. If you dine at home and get a delivery, you probably will already have drinks on hand and some ice cream in the freezer so you've saved $$ there. There's good and bad to both scenarios. It's akin to paying for streaming services these days. You'll pay $10 a month (or thereabouts) to watch endless hours of shows instead of going to a theater and paying $10-$15 for each person. At home you'll probably have your own popcorn in the microwave and a 2-liter bottle of soda in the fridge. The heck with those out of control concession prices at the theater. Now, there is something for everyone at all different budget levels, whether you stay home or go out.

    • @Wow_wow1
      @Wow_wow1 Před 2 lety +1

      So… if the delivery companies pass the fees to the consumers, how will this generate profit for them since it would discourage the usage of their service?

    • @pete9364
      @pete9364 Před rokem

      and do you think the consumer will pay the extra 30%? Is convenient up to a point but when the restaurant is litterally few km away, there is no reason to pay extra 30%.

  • @FinancialShinanigan
    @FinancialShinanigan Před 3 lety +44

    Double edged sword, need delivery apps to survive but getting lower profits because of commission fees

  • @georgiawp
    @georgiawp Před 3 lety +9

    FYI: Too Good To Go is not a delivery app.

  • @clintongwanyama7188
    @clintongwanyama7188 Před 3 lety +19

    I have never used a delivery service to order my food

  • @diverseten8392
    @diverseten8392 Před 3 lety +85

    I came straight to this video after ordering my food on Uber Eats, lol.

  • @nemesisenforcer907
    @nemesisenforcer907 Před 3 lety +14

    This is the future of restaurants even after Covid. People want convenience. I have purchased two used toyota corollas and both have been rented out to food service delivery drivers. The demand for convenience is growing exponentially. Nothing will be what it used to be. Even 5 star restaurants are using delivery services. No one want to wait in a line or at the bar for their food. They prefer to wait and eat at home. The world has changed and it's not going back.

  • @SomethingSomewhereJustOnce

    Two years ago we had four options to order food in India i.e. Zomato, Swiggy, UberEats and Foodpanda. Now only Swiggy and Zomato exist with a few smaller ones still afloat. UberEats merged with Zomato last year and I don't know what happened with Foodpanda after it was acquired by Ola cabs, it's way too low profile now.

  • @w1ndache
    @w1ndache Před 3 lety +15

    Delivery apps are burning money fighting each other, now is the best time for consumers, get a bargin out of it while you can.
    It's pretty much the rideshare wars all over again.

  • @forgivensign
    @forgivensign Před 3 lety +16

    Hmm why do they charge the restaurants so much if as consumers we still have to pay a modest fee for delivery? Something doesn't add up

    • @airgunningyup
      @airgunningyup Před 3 lety +8

      yea, theyre double dipping and not passing that money along to the driver.

    • @Hofftimusprime1
      @Hofftimusprime1 Před 3 lety +7

      @@airgunningyup The restaurant worker gets screwed too cause they get zero of the tip for the carry out.

    • @14thegr8
      @14thegr8 Před 3 lety +2

      Because they ought to turn a profit. They are not non-profit organizations. Good morning.

    • @juanitacanon3120
      @juanitacanon3120 Před 3 lety +1

      The charge for the app usage

    • @carultch
      @carultch Před 2 lety

      @@14thegr8 But why double dip by charging both the restaurant and the customer?
      Why not set up the pricing so that the restaurant gets the full nominal cost of the food, regardless of how the customer orders it, and have the customer pay a separate delivery fee that fully reflects both the app's cost and the driver's cost?

  • @icekk007
    @icekk007 Před 2 lety +1

    Restaurants are paying 10-35% fees to food delivery companies, and yet food delivery companies are barely break even. Where does this extra revenue go to? Delivery workers, advertising industry?

  • @parthgutka3454
    @parthgutka3454 Před 3 lety +3

    One thing I would suggest here is that all small restaurants should come together and make their own app, and hire drivers on a contract basis, so all restaurants can collectively hire drivers and drivers can deliver for all of them, paying the drivers a monthly salary and pay a commission after a certain threshold and the cost is shared by all the owners, so they don't have to pay extra and at the same time can provide benefits, also there would be no parking fees involved for delivery drivers, and also restaurant owners can have the data that these companies refuse to share. In a way it solves almost all the problems.

  • @danielan962
    @danielan962 Před 3 lety +9

    also these delivery app lobbied to extend the lockdown, their market value and share price exploded last year

    • @markkennedy1743
      @markkennedy1743 Před 3 lety +2

      Any proof of this? Do you have a link? Would love to check

  • @kumar103505
    @kumar103505 Před 3 lety +2

    I'm one of the restaurateur who lost business due to pandemic. Another reason is delivery service providers. They charge 28% for each order. Plus, deductions for customer complaints and promotions. Most of the times customer complaints are false. With all these I get approximately 1K for sale value of 5K 😭.
    Finally not to mention the discounts. Restaurants has to provide upto 60% discount.

  • @girlinterrupted9792
    @girlinterrupted9792 Před 3 lety +12

    I refuse to use delivery apps. Even before I knew they charged restaurants so much, I didn't like the idea of a middle man. Plus, I want my tips going to servers.

  • @jaynesvijeo249
    @jaynesvijeo249 Před 2 lety +1

    Making food at home is so much better! I can make a cheeseburger and fries at home in 20 min and I'm a disabled person. But that does not mean I need to rely on these predatory apps with their outlandish random taxes and fees.

  • @adityajadhav3045
    @adityajadhav3045 Před 3 lety +2

    Where I live you actually get it cheaper if you use a delivery app. I dont know their business model but it's great

  • @cheechuenlim3541
    @cheechuenlim3541 Před 3 lety +2

    To be honest, I go for whichever platform offering the most discounts

  • @donindiana8504
    @donindiana8504 Před 3 lety +14

    Audio is not mixed well. Narrator is too soft and interviewees are too loud.

    • @oama2009
      @oama2009 Před 3 lety

      It sounded like that and it was perfect. I want to hear loud interviewees and soft narrators.

  • @vintagegal7376
    @vintagegal7376 Před 3 lety +49

    Delivery apps are actually killing off restaurants. Stop using them!

    • @stephenwerner6399
      @stephenwerner6399 Před 3 lety

      Hello Cindy

    • @xtrey19x
      @xtrey19x Před 3 lety +3

      Most restaurants don’t offer their own delivery so what’s the solution. Customers should not order unless they are will to come to the restaurant themselves?

    • @karoberts2198
      @karoberts2198 Před 3 lety +2

      @@xtrey19x Even those that do offer delivery, who will work for them when the driver can work for an delivery app and can control their hours?

    • @xtrey19x
      @xtrey19x Před 3 lety +1

      @@karoberts2198 I see what you’re saying, but there are people who want that employer/employee relationship with a guaranteed paycheck. Not everyone is quitting there restaurant job to do gigs.

    • @karoberts2198
      @karoberts2198 Před 3 lety

      @@xtrey19x That is one example of what happens. Change is never easy.

  • @jakimson1994
    @jakimson1994 Před rokem

    Not mentioned is that the delivery folks in some cities like NYC absolutely ignore road etiquette. They run reds while going 20-30mph, ride on crowded sidewalks, ride on bike lanes not designed for these fast vehicles. The whole industry is for people who wants to throw away money, supporting business model that does not make money.

  • @jennlim2735
    @jennlim2735 Před 3 lety +4

    I usually place an order an hour before I get off of work, pick up the food and tip the restaurant instead of drive pass by the restaurant, get home and then order for food delivery which would cost me double the price.

  • @Luna-oo9ru
    @Luna-oo9ru Před 3 lety +1

    The restaurants charge about 30% more for the food anyway on top of a delivery fee.

  • @franklynmanuel
    @franklynmanuel Před 3 lety +19

    We need to understand that some of these restaurants have became popular only because they were listed in these delivery apps and if not these start up restaurants might have not got a chance to make them visible to the users.

  • @artraft5142
    @artraft5142 Před 3 lety

    Mexico is developing partnership between TV manufacturers and restaurants to enable flow when ordering using restaurant apps. For those TVs with AI technology it is possible to enable voice commands to order food and use the food delivery apps as part of the logistic execution. Once the Covid is finished people will go back to restaurants but the digital capability will remain as customers when paying at the restaurants will have an automatic log of the food they’ve eaten do they can create diaries or other augmented reality options

  • @poopsie117
    @poopsie117 Před 3 lety

    These delivery apps like UberEats also put on or force restaurants themselves to put on a HUGE overprice on items.

  • @ManOfSteel1
    @ManOfSteel1 Před 3 lety +13

    i order only when there is GOOD discount.

    • @deepanshugupta8918
      @deepanshugupta8918 Před 3 lety

      And where do you think that GOOD discount is from? UberEats or those other platforms? No.
      Those platforms ask (demand) the restaurants to give from their own pockets to get orders.

    • @SaSha-hb5rq
      @SaSha-hb5rq Před 3 lety

      I download all the delivery services available in the store, switch and choose which one has the best discount.

    • @Shadow__133
      @Shadow__133 Před 3 lety

      @@deepanshugupta8918 Nice, even better then!

  • @Steven-xf8mz
    @Steven-xf8mz Před 3 lety +1

    food over 3rd party app = 15-20% price difference + 20% processing fee + delivery fee(you still have to tip 15%+)... is it that hard to keep a menu in your drawer or google their menu?

  • @ZubairKhan-tt8ev
    @ZubairKhan-tt8ev Před 3 lety +1

    The easiest answer is to increase the price u sell ur food at on the delivery app & throw in a sticker saying it’s cheaper to pick up directly

  • @moira4784
    @moira4784 Před 3 lety

    I always look to see if the place has an independent ordering site. I hope ito help.

  • @nicolasfernandez222
    @nicolasfernandez222 Před 3 lety +7

    I don't know who needs to hear this, save to invest! You're saving a day off work.

  • @stmbds
    @stmbds Před 3 lety +3

    during the start of quarantine until now i never once ordered any food delivery, the fees are just too much :/

    • @Shadow__133
      @Shadow__133 Před 3 lety

      Fees suck, a $8 burger for $18+

    • @stmbds
      @stmbds Před 3 lety

      @@Shadow__133 okay thats straight up robbery :/

  • @jedumalagan6632
    @jedumalagan6632 Před 3 lety +1

    People no longer need restaurants. Its tiring to visit one. I always do orders.so convenient

  • @Pulpswo
    @Pulpswo Před 3 lety +1

    Should offer lower prices or something if you come and pick it up which I think most do offer this as I have checked the prices on the delivery apps vs the restaurant's actual price.

  • @thekid366
    @thekid366 Před 3 lety +2

    What the restaurants mean is they can’t afford drivers

  • @clintongwanyama7188
    @clintongwanyama7188 Před 3 lety +27

    Let’s support local restaurant by picking up our food from the location

    • @Jesus-kt5dc
      @Jesus-kt5dc Před 3 lety +2

      *What about the drivers? I always tip them, what then?*

    • @xPussySlayerx69420
      @xPussySlayerx69420 Před 3 lety +2

      I'm not going to pick up the food. You will get 0 orders from me if that's the case.

  • @kittyt5452
    @kittyt5452 Před 3 lety +5

    We walk up to place an order. Then take a 15 minute walk to whatever. That's the only exercise we get anyway. So no apps.

  • @thetitotruthtotem8779
    @thetitotruthtotem8779 Před 3 lety +7

    Maybe one day the food delivery services will open their own ghost kitckens or hybrid restaurants.

    • @beyondtheclouds95
      @beyondtheclouds95 Před 3 lety +2

      They already have
      Tho on the app, the vendors are indistinguishable to the consumer

    • @thetitotruthtotem8779
      @thetitotruthtotem8779 Před 3 lety

      @@beyondtheclouds95 I guess it depends on how much the consumer is paying attention or not or the outlets available near them. I personally have had that seamlessness illusion popped by the restricted logistics of which stores were available. Order flow, I agree in that it's like one big digital restaurant to the consumer. I meant more as far as the remaining friction between the restaurants and order delivery apps as highlighted in this video. Namely high prices for delivery to compensate both the restaurant and the service and also the timing of food preparation and travel distance.

    • @FupaDoncic
      @FupaDoncic Před 3 lety +1

      Only a matter of time, Amazon has opened the floodgates to monopolization.

    • @thetitotruthtotem8779
      @thetitotruthtotem8779 Před 3 lety +1

      @@FupaDoncic to be fair I believe that Amazon merely built the core of the business using smart, modern principles first. What other businesses were adopting later on such as data and converting online, Amazon was built on from the get-go. Without taking sides as I've also seen many businesses sink because of all of this, Amazon happen to be in the ideal position to have it's entire infrastructure and core business built entirely on the most updated tools and models available which happened to be internet access and data applied to shopping.

    • @FupaDoncic
      @FupaDoncic Před 3 lety

      @@thetitotruthtotem8779 don’t get me wrong, Amazon has been a blessing and curse, brilliant concept. Becoming the middle man and the post man at the same time. While expanding to the digital media market and groceries. Same time destroying small businesses, but contracting for transportation. I’m just saying we’re gonna see more. Uber is doing what your OP said. Then it went to food, then liquor, now groceries. Next thing you know it’s gonna rent cars like Mercari/turo. Internet and App loopholes are allowing these business to do it. And they are definitely bending rules (taxes)

  • @Known-unknowns
    @Known-unknowns Před 3 lety +4

    There’s a lot of talk about habits changing. However when Covid-19 ends many people will go back to eating out. I don’t think the current eating habits are necessarily going to stick.

    • @juanitacanon3120
      @juanitacanon3120 Před 3 lety +1

      Honestly in my country we’ve had apps like this since before the pandemic, and it was really popular devenir back then

  • @shaider1982
    @shaider1982 Před 3 lety +1

    6:49 so it's not just in my country that apps short changing the delivery guys are a problem

  • @chansaicommerce1721
    @chansaicommerce1721 Před 3 lety

    GREAT WSJ !!!!!!!!!!!!!!!!

  • @waynelau7228
    @waynelau7228 Před 3 lety +3

    I used to work for just eat. Restaurants were particularly tilted when their own customers started using the app instead of their prior method of order. We raised commissions relentlessly... It was pretty predatory

    • @xPussySlayerx69420
      @xPussySlayerx69420 Před 3 lety +1

      Maybe the customers starting using the apps because of covid, if your business doesn't support delivery, you will get 0 business from me.

  • @ID_iKONIC_VIP
    @ID_iKONIC_VIP Před 3 lety +1

    So restaurants should give discount to customers who come pick up to incentivize but they don't.

    • @carultch
      @carultch Před 2 lety

      Or better yet, set up a pricing structure that actually reflects expenses, so the restaurant gets the same revenue regardless of how the customer orders, and the delivery fee pays for the app plus the driver's service.
      Same issue with payment by credit cards at stores in general. The credit card company takes a piece of the action called an interchange fee. But the merchant still charges the customer the same amount, regardless of how they pay. The merchant therefore has to cover the credit card interchange fee. In an abstract sense, the interchange fees are passed onto all customers, even the ones who don't use any credit card services, because the nominal prices therefore have to account for the interchange fees. Some credit card contracts even require the merchant not to directly pass these fees onto the customer. As a result, the consumer is kept in the dark about how much they are really paying for financial services.

  • @personne4985
    @personne4985 Před 3 lety +1

    I tried to order with such sticker from the bag that was saying 10 euro Off last week, but in fact the min order for this coupon was 30 euro which was not written anywhere. So, with Uber you at least know Uber will follow simple rules carrying about the brand

  • @Dakidpepe
    @Dakidpepe Před 3 lety +5

    It's the restaurants faults for not adjusting with the times. Same way malls/stores are closing because they didn't want to update their websites or have quicker shipping.

    • @sakenu16
      @sakenu16 Před 3 lety +2

      Think that is a bit unfair. Restaurants are not the same as the giant stores in the mall and most being national stores. Most of them are privately own like mom and pop stores. They don’t have that kind of cash for having a thriving delivery service to reduce costs etc. Restaurants as it is doesn’t generate that much revenue, like Mc Donalds or many of those chains which are fairing much better. My suggestion for people who want to support these local businesses and their staff, just wear a mask, order for pick, take a drive and pick up your own food. Help out these local business who are struggling.

  • @johnl.7754
    @johnl.7754 Před 3 lety

    Not sure this model will work in labor expensive countries with politicians and some workers complaining about wages/benefits while the delivery companies are still not making any money.

  • @jonsmith7659
    @jonsmith7659 Před 3 lety

    You should order directly from the restaurants. Or go pick it up if possible. You don’t have to sit inside. Apps are a huge rip off. If you order a $20 meal, you pay for fees and taxes plus a tip and it’s closer to $30.

  • @MsK-xm7vw
    @MsK-xm7vw Před 2 lety +1

    Yes, and no. While these greed-produced (what business isn't?) and inequitable delivery services charge outrageous amounts (look who actually owns them), restaurants have doubled and even tripled their customer base through them. Some restaurants are showing customer increases of 70% or more since before the pandemic while crying foul. Further; while many chain restaurants and even Mom& Pop operations may be showing a larger customer and profit margin, many restaurants are increasing their prices thinking they're all that. Well, the next stage of both the pandemic and economic downturn has yet to raise its ugly head, and all of this greed against consumers mentality will very quickly backfire on those businesses who perpetrated it. Both delivery services and restaurants!

  • @wilber504
    @wilber504 Před 3 lety +1

    all these people getting used to eating cold food. Amazing!

    • @BGRUBBIN
      @BGRUBBIN Před 3 lety

      Hhahahahahahaahahahahahahaha

  • @majoroldladyakamom6948
    @majoroldladyakamom6948 Před 3 lety +2

    Ordered a pizza the other day. The dough was raw, and the food was cold. Uber + cost of the pizza and a small salad? Over $50 US, and an hour out. Actually, tipped the delivery person $5 cash, and sent it back. The dough was RAW in the middle, and I clearly stated that I would not accept the order, if this was the case, when I placed the order.
    Repeated myself THREE TIMES!
    Met the delivery driver at my front door... with a fork. Showed him the raw dough, and explained that it was not him (poor kid), my detailed convo with the order taker about NO RAW DOUGH, etc. UGH!!!
    Far easier, cheaper and healthier to make it myself, at home. Total cost?
    Pizza and salad, a few slices of fresh fruit, some milk, a cold one and/or water from the tap? Under $20 US, in total. Fed all 4 of us, and used the heat from the oven to heat my home, by leaving the oven door slightly ajar. Go figure.
    Oh, wait. Or not.
    That means bring out the cell phone calculater, right?
    Divided by 4 people? Over $12 US per serving to order out and get cold, soggy pizza, Jimmy John's, Subway, the local steak houses (one charges $8 for a small Caesar salad, not including delivery fees).
    Ditto another steakhouse chain called The Buzz Inn in Western Washington State.
    Easy to have a Mack n Jack, the largest steak (left overs for mixing in with eggs and hashbrowns in the morning), baked potato, ONE tiny/small slice of garlic bread for around $50 US per head. Dinner for 2? Around $100 US, plus tip.
    Under $5 per person/serving to make a pizza at home, with sides and beverages?
    Piece of cake.
    Easily 1/2 of the cost to make a great steak dinner on the grill, corn on the cob, a baked potato with all the trimmings, some coleslaw and a few slices of fresh fruit, garlic bread and a cold brew?
    Under $10-$13 US, per person.
    Just saying... lol.
    Love you all. Stay safe and well to you and yours from somewhere near Seattle and around the World...
    ⚘🙏❤🙏⚘

    • @MR-kt2zv
      @MR-kt2zv Před 3 lety

      You sound like a nightmare, lol

    • @thewonderingbuddhist6123
      @thewonderingbuddhist6123 Před rokem

      As an uber driver we make $2 from these companies plus maybe ur full tip amount

  • @dhruvholla9090
    @dhruvholla9090 Před 3 lety +3

    Meanwhile in India, Zomato has been a thing forever

  • @surajssd
    @surajssd Před 3 lety +4

    How this video is exclusively talking about the US and UK. While there is a revolution happening, mainly driven by the food delivery services in South (and South East) Asia.

    • @davidbilla8063
      @davidbilla8063 Před 3 lety

      Yes Zomato,Swiggy

    • @tomi1455
      @tomi1455 Před 3 lety +2

      yup, us and uk delivery service is way behind compare to those region.

  • @JCMaldonado13
    @JCMaldonado13 Před 3 lety +7

    Wouldn’t it make more sense to pay the delivery fee separately on top of the price for the food?

    • @dennisp8520
      @dennisp8520 Před 3 lety +6

      Consumers already do that these companies are double-dipping to drive profits, on top of that we are supposed to tip. I would be much happier if Uber would just have a delivery fee that covers the tip for the delivery persona and be done with it

    • @xtrey19x
      @xtrey19x Před 3 lety

      @@dennisp8520 I never used UberEat, but I assume they all work similarly. In my experience you don’t have to tip and the drivers also don’t have to agree to accept your order. Seems fair to me, don’t tip and possibly wait longer or have the company make up for the lack of tip.

  • @moneykingmm9298
    @moneykingmm9298 Před 3 lety

    Use a app is so easy to use and only take minutes and some people don’t like calling the restaurant

  • @alparslankorkmaz2964
    @alparslankorkmaz2964 Před 3 lety +2

    Nice video.

  • @xpto41
    @xpto41 Před 3 lety

    i understand some restaurants are against the uber eats, glovo, etc fees but at the same time, if it wasn´t that food apps, they won´t be able to sell so well and became so popular

  • @certifiedomlayoo
    @certifiedomlayoo Před 3 lety

    there is like 5 delivery service in malaysia ,

  • @LeviWritesBooks
    @LeviWritesBooks Před 3 lety +2

    Societies have always hated middle men because middle men do what they don't want to do and help them make money in the process. If those restaurants were so good at making food and delivering Uber eats and door dash would not be needed.

  • @philiplecator2341
    @philiplecator2341 Před 3 lety +1

    What about us gig workers. What Uber does for the people. Uber pays my bills and pays for my college. All while letting me make my own schedule. I understand the restaurant’s concerns but the apps help thousands of people better their life’s.

  • @Loftikaz
    @Loftikaz Před 3 lety +2

    I was in Paris it was 3am and I was really hungry after I just finished work and the only food I was able to get at that time or place is by uber eats and restaurants were closed so they have their advantages too

  • @sanansa4567
    @sanansa4567 Před 3 lety +3

    if I need delivery, I will only order from restaurants that offer their own delivery service (even when they charge for it, it is still WAY cheaper then any of the food delivery apps). and I have many other reasons that I don't want to order from a food delivery app, including I always pay for things in cash unless I have to use my card. If I can't find a restaurant to deliver the food I want, I just make something else at home.

  • @FoXyToWn
    @FoXyToWn Před 3 lety

    I don’t want to be that guy but... I did try to order directly from the restaurants but ended up with poorly delivered orders, with its contents spilling and most ingredients completely trashed over. When I called the restaurant about it .. no type of compensation or replace was offered... “Sorry but we can’t do anything. 🤷‍♂️”. Because of this I decided to always order via and app (Uber eats,rappi,etc) as if something happens they will offer a partial or total refunds. In the end restaurants know how to cook... but not how to deliver. They just pack the delivery guy with as much deliveries as he can take to “optimize” his reason to get paid for delivering, which in the end just turns into badly delivered things.

  • @N.A525
    @N.A525 Před 3 lety

    I don’t order thru app. Obviously I go directly to the restaurant.

  • @liamlee8422
    @liamlee8422 Před 3 lety +4

    various fees charged by uber eats are outrageous even for customers ordering food

  • @IvorMektin1701
    @IvorMektin1701 Před 3 lety +8

    Call in and please pick up at the restaurant. It kills businesses to pay the services.

    • @navigation4653
      @navigation4653 Před 3 lety +1

      No restaurants are making good money they should share it 😛

  • @Larryboy12345
    @Larryboy12345 Před 3 lety

    I still just order by keeping a bunch of menus in a drawer and call up whichever one I fancy. Not so much I have principles about supporting small businesses but I don't see how these apps are any more convenient than doing what people were doing for decades before, so if it's not broke, why fix it?

  • @tobyli52
    @tobyli52 Před 3 lety

    These delivery services are small compared to the ones in China, e.g. Ele and Meituan

  • @ok8745
    @ok8745 Před 3 lety

    so what happens when the pandemic declines and restrictions ease up, do things get better or worse for restaurant owners?

    • @dennisp8520
      @dennisp8520 Před 3 lety +1

      Better because then people will eat inside again

  • @TomNook.
    @TomNook. Před 3 lety

    Uber eats is in the UK too

  • @zEondota
    @zEondota Před 3 lety +3

    Uber eats gave out the best discounts, I brought best biryanis in the city for half the money!

  • @SweetasSugar42
    @SweetasSugar42 Před 3 lety +2

    I know a lot of students who tip drivers in cash when they deliver the food.

    • @WorshipDaKing
      @WorshipDaKing Před 3 lety

      somedrivers dont take orders if u dont tip enough online and the food gets cold

    • @Shadow__133
      @Shadow__133 Před 3 lety

      I never get tips 😔

    • @SweetasSugar42
      @SweetasSugar42 Před 3 lety

      @@Shadow__133 I think it's just a popular practice around my college

    • @SweetasSugar42
      @SweetasSugar42 Před 3 lety

      @@WorshipDaKing never experienced this!

  • @prinzvontomatenkopf6335
    @prinzvontomatenkopf6335 Před 3 lety +11

    I will always prefer the good old restaurant

  • @clairmac
    @clairmac Před 3 lety +1

    That increase is put back on the customer. Check the prices next time you order online it's marked up, why so sneaky?

    • @blumachine
      @blumachine Před 3 lety +1

      I work retail and it’s ridiculous how much more they charge and how much of the total is knocked after they take their cut

  • @SideHustleAddict
    @SideHustleAddict Před 2 lety +1

    Please tip your delivery driver

  • @dontknownothing8394
    @dontknownothing8394 Před 3 lety

    Alright but the owners should also evaluate how expensive it would be to hire an employee just to deliver food. Companies like Uber Eats are actually doing a favor to restaurant owners because are continuously offering drivers for 24 hours, 7 days a week allowing them to reach a greater amount of customers.

  • @nintexoo
    @nintexoo Před 3 lety

    Why do I pay a subscription fee on top of a delivery fee for postmates? They write thier own rules.

  • @heatherc4416
    @heatherc4416 Před 3 lety

    Spending down 5 percent in a pandemic year without indoor seating for the majority of it isn't bad. I was expecting 2 digit numbers.

  • @Bloodysweet1818
    @Bloodysweet1818 Před 3 lety

    Looking for decentralised food delivery app

  • @ryansmithc
    @ryansmithc Před 3 lety +1

    Majority of consumers will make their decisions purely based on price. Restaurants allowed for platforms to dominate and now want to guilt the consumer. All the pandemic did was expose businesses that failed to diversify .

  • @MetalMilitia072583
    @MetalMilitia072583 Před 3 lety +12

    Imo it's unethical to take any % of the restaurant's revenue of an order, pass on the cost to the consumer, not the restaurant. And Delivery apps need to shrink their ego but with consumers preferring convenience, that's gonna be tough 😂

    • @bjmurray1842
      @bjmurray1842 Před 3 lety +2

      They do both, though. Paying up to $10 in addition to "delivery'" an then tipping well (it's not the delivery person's fault) can double a bill. I try to go directly through the restaurant. Unfortunately, many places don't have their own platform.

  • @sugandasu
    @sugandasu Před 3 lety +1

    These problem is only in us, because no other country has tips!

    • @vlp4469
      @vlp4469 Před 3 lety +1

      Tips is getting out of control here in US, people that provide service that suck expect a good tip! Or people that get paid well by their employer still want a tip!

  • @jawid2058
    @jawid2058 Před 3 lety

    Just wait 5 yrs till self driving cars show up then it will be all delivery

  • @clerickolter
    @clerickolter Před 3 lety

    Then get your own drivers, pay them cash under the table and don't say their employees if your so cheap. Or close.

  • @Csilva857
    @Csilva857 Před 3 lety

    This is no different then what happened with Uber and the Taxi business. Instead of fighting against the change what these small businesses should do is band together and create their own delivery service where they all pay a certain amount based on usage, all share drivers , all share cost burden and then all share a higher profit. They could even collectively start buying in bulk all types of food service things such as takeout containers, forks , bags, napkins...They should start investing upstream and downstream collectively. Imagine if all of the restaurants in your city used the same reusable takeout containers and even charged a deposit fee, they could even go back and collect the containers on the next delivery and wash them for reuse.

  • @chansaicommerce1721
    @chansaicommerce1721 Před 3 lety

    GO GO !!!!!!!!!!!

  • @user-qi9wz6iu9x
    @user-qi9wz6iu9x Před 3 lety

    Although it’s important to think the structure between the food delivery company and the restaurant, it’s also needed to tackle the bad behavior of delivery staff...
    In Japan, we see a lot of their bad manners, that have become social problem..

    • @yellowxpurple95
      @yellowxpurple95 Před 3 lety

      Here in Canada, I’ve noticed a lot of UberEats drivers never wear a mask when handling or dropping off the food

    • @zzm2405
      @zzm2405 Před 3 lety

      Same here in Italy

  • @cfynxci8645
    @cfynxci8645 Před 3 lety

    Uber should create delivery-only restaurants called "express kitchens" that offer simple, clean and healthy menu items that are prepared fresh-to-order by a BotChef and packaged for delivery by a BotRunner

  • @byakuya98
    @byakuya98 Před 3 lety

    Cap the fees to 15 to 20%.

  • @swimmer1103
    @swimmer1103 Před 3 lety +1

    I work in the food Industry! Please support all of your local restaurants, they need it now more then ever. Pick up your food instead of supporting food delivery.

    • @mariasaint-brice3406
      @mariasaint-brice3406 Před 3 lety +1

      We are in Lockdown. Delivery is the only option when taking a break from home cooking. If I could go out, I would, but I have been advised by the NHS to shield. I appreciate the opportunity to use a variety of Courier Platforms that meet my needs.
      Some restaurants have not upgraded to the new ways of working and do not even offer delivery.
      Good luck to all restaurants during these days with 'The Covid', I hope that your culinary creations are providing nutritious and visually appealing dishes for your communities.

  • @rjallenbach1
    @rjallenbach1 Před 3 lety +13

    Don’t be lazy. Either cook your own meals or make the trip to pick up your food curbside from local, independent restaurants

    • @ij9375
      @ij9375 Před 3 lety +2

      Obviously you are not the target market for these services but many people love what they do

  • @clank8989
    @clank8989 Před 3 lety +3

    I think these services help restaurants. If they really want to keep that revenue, they better hire some deleveryman.

  • @FMFF_
    @FMFF_ Před 3 lety

    I just don’t get why people want delivery unless it’s for a party. Just drive/walk to a place within 10-15mins distance. I don’t like to tip, pay for delivery, or deal with messed up food.
    Even before COVID, I didn’t trust people to be clean. At least if I go in person I can comfort myself with (possible)lie the workers are clean, and the equipment is too. I always feel sus of places I can’t see them cook.
    I get it if delivery is the only option because walking would be worth more than the delivery fee but otherwise, why bother? Just do pickup, no long waits (most places I learn their prep time range) and no extra fees. Get another meal with that money.

  • @ericcarabetta1161
    @ericcarabetta1161 Před 3 lety

    I hate delivery I never use it.

  • @elcanalderebeca
    @elcanalderebeca Před 3 lety

    Saludos chicos gente maravillosa y bella ❣️❣️❣️❣️❣️🧡🧡🧡🧡🧡🧡

  • @Hamsteak
    @Hamsteak Před 3 lety

    I never use delivery apps. It's better to call directly, you save money and so does the restaurants

    • @michaeljones6832
      @michaeljones6832 Před 3 lety +1

      And you get food thats not cold: )

    • @xPussySlayerx69420
      @xPussySlayerx69420 Před 3 lety

      That's fine if they offer delivery, if they don't offer delivery, they won't get my business. And my food never comes cold, it comes at the same temperature as when I ordered it in person.

    • @Hamsteak
      @Hamsteak Před 3 lety

      @@xPussySlayerx69420 that's alright. I'll just go and pick it up myself or pick a different place