[ELI5] How do delivery services like Uber Eats make money when a rider get’s $5+ per delivery?
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I strongly don’t believe they lose billions, sounds like accounting trickery ie charging subsidiaries ‘license fees’, ‘high interest loans’
I also don’t believe they’re rolling in it.
Previously they forced restaurants to charge same price as their menu. There were a lot of leaks that they were charging restaurants 25-30%… meaning many places were probably not making a profit.
It looks like that changed 2-3 years ago. Now if you look at the menu, then jump online to see the restaurant menu, you’ll also see prices are around 25-30% higher. + the add on the delivery fee of $8-9 AUD in Australia
I strongly don’t believe they lose billions, sounds like accounting trickery ie charging subsidiaries ‘license fees’, ‘high interest loans’
I also don’t believe they’re rolling in it.
Previously they forced restaurants to charge same price as their menu. There were a lot of leaks that they were charging restaurants 25-30%… meaning many places were probably not making a profit.
It looks like that changed 2-3 years ago. Now if you look at the menu, then jump online to see the restaurant menu, you’ll also see prices are around 25-30% higher. + the add on the delivery fee of $8-9 AUD in Australia
They make some ££$$ from the takeaways as they charge them for the rental of the service ,listings and promotion..
They make some ££$$ from the takeaways as they charge them for the rental of the service ,listings and promotion..
Uber Eats base pay is 2.00. DoorDash base pay is 2.25.
Source: I used to do Uber Eats and currently do DoorDash
Uber Eats base pay is 2.00. DoorDash base pay is 2.25.
Source: I used to do Uber Eats and currently do DoorDash
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
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
I’m an UberEats driver. The fees actually come out of the price of my delivery. I don’t take low paying offers as indicated by OP. Tonight I delivered an order originally paying $12+. I ended up making $17 with an increased tip for 4 miles. The average order ranges between 6 to 9. I never take anything under 6.75 with a distance no more than 3 miles.
I’m an UberEats driver. The fees actually come out of the price of my delivery. I don’t take low paying offers as indicated by OP. Tonight I delivered an order originally paying $12+. I ended up making $17 with an increased tip for 4 miles. The average order ranges between 6 to 9. I never take anything under 6.75 with a distance no more than 3 miles.
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