Ordering in: The rapid evolution of food delivery


Customers fueling the growth in food delivery are paying a sizeable premium



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Auction Catalogue Berger Paints-RDC-Devla-NOIDA Div auc dt.28th March 22 94350 1.10
Customers fueling the growth in food delivery are paying a sizeable premium
over the cost of their average order.
10
Ordering in: The rapid evolution of food delivery


Moving forward, consumers will likely see the cost of their restaurant meals increase (through additional listed fees or menu markups) in order to cover restaurants’ commission costs and driver pay.
These fees and markups may eventually decrease as restaurants and delivery platforms become more efficient at scale.
In one example of a market shift that could increase customer retention while also benefiting consumers, many delivery platforms have begun offering monthly subscription services, following similar models such as Amazon Prime. With
DoorDash’s DashPass, for example, or Uber
Eats’ Eats Pass, customers pay a monthly fee for unlimited free deliveries. These offers reduce the cost burden for customers who order frequently and make the cost of attracting customers more worthwhile for platforms, as customers become more loyal.

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