.DoubleLJSquared explains how new tiered-commission options from DoorDash and Uber Eats aren’t the gift to restaurants they seem to be WSJWhatsNow
between April and December last year amid the pandemic than they did during the same months in 2019.
Some of that has to do with restaurants’ pinched budgets. But it is also likely because the common practice of adding restaurants to platforms without explicit agreements has fallen out of favor. In California, platformswith restaurants to deliver their food. Delivery workers often showed up and crowded kitchens unexpectedly, while delivery platforms received orders for items restaurants no longer served.
The bet on tiered pricing has to be that options are more palatable for restaurants initially, opening the door for an upsell down the road. DoorDash’s new tiers start as low as 15% of the order—a far cry from the 30%-plus that some restaurants have reported paying for services in the past. But for a restaurant looking for a plan that includes comprehensive discovery and delivery services, not all options make sense.
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