[ELI5] How do delivery services like Uber Eats make money when a rider get’s $5+ per delivery?

Question

[ELI5] How do delivery services like Uber Eats make money when a rider get’s $5+ per delivery?

In: 34

Answer 1

Cost money to make money.

1. The food prices are actually inflated. Last o checked it was about 10% higher than the original menu.
2. The company (Uber, GrubHub,etc.) Charges for shipping unless you have their premium status. Their premium status is often not utilized by people who have them cause it’s paid by their credit card benefit.
3. The salary to the driver is often subsidized by something else, like UberCar. Most business often goes at a lost to bring in customers, once customers are brought in they increase the price