Name: Are DoorDash, UberEats Good For Restaurants?
Uploaded: 2021-04-21T13:08:30.000Z
Duration: 16 min 28 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of degree

I was crying every day, I was crying, I'm not I'm not even going to I'm not even a front.

I was sitting there in the kitchen crying.

The pandemic has crippled many industries, but restaurants have had an especially challenging

Pre-pandemic, over half – 51 one percent of all food spending in America was allocated

During the pandemic second quarter that dropped down to the high 30 percent range.

But while dining has dropped way down, food delivery has grown considerably.

DoorDash and Uber Eats, the two largest delivery apps by market share, both saw their sales double

As of February 2021, DoorDash held the most market share in the U.S.

by far. But some cities have other favorites, like Uber Eats in Miami and Grubhub in New York

City. Restaurants are relying on these delivery apps more than ever before.

It was fifty-fifty before the dine-in and walk-in and our personal website, obviously it took the

It's 80 percent. It's definitely 80 percent.

DoorDash alone delivered 543 million orders between January and

The pandemic has been a huge challenge for all of  us, DoorDash, the industry

And I think it was both a challenge as well as an opportunity.

And in an economy with about 9.5 million fewer jobs in February of

2021 compared to February 2020, the flexibility of food delivery as a job

Of all the industries in America today, the restaurant industry has been the

industry that has been most impacted in terms of sales declines as well as employment

Kind of the height of the pandemic, we...

nearly 2 million new dashers joined the platform, which was incredible.

So I started full time for DoorDash in March of last year.

So yeah, that's how I got into – a at closing restaurant and then full time once the pandemic

hit. I don't know, I just really enjoyed it and the money was good as long as you're very driven.

And some of these guys have like three phones, you can see them.

It's crazy. They have three phones, one from Grubhub, one for DoorDash, one for Uber Eats.

It's fascinating. It's a whole other world.

Though the rise in delivery has provided new jobs for drivers, there have been some challenges for

restaurants. The delivery apps charge the restaurants fees in order to make money.

Uber Eats charges a one time $350 set-up an equipment fee, plus a

Grubhub charges a 20 percent marketing fee, a 10 percent delivery fee and a processing fee of

DoorDash told CNBC that the company doesn't disclose specific fee amounts given they vary since

the company offers a variety of services for vendors.

Delivery like for my business is 80 percent.

So I can understand before as a restaurant that was 30 percent delivery, taking a commission fee of

30 percent for my 30 percent of delivery wasn't a lot of money.

But when your delivery is now 80 percent, and  you're taking 30 percent of my 80 percent.

The average markup is 41 to 58 percent across platforms,Gene?

It does Melissa and that excludes typically a 15 percent tip that they put in,

all three major platforms put in, you got to back that tip out.

These fees result in higher food prices for consumers as well.

There's the price of the meal you'd get if you were going physically to a restaurant.

This handy guide from Loup Ventures sets that price at $18.58.

That price usually goes up when a restaurant lists items on these apps.

Then there's a delivery fee, which is sometimes covered by subscriptions like DashPass and Grubhub

There's also a regulation fee which companies, including DoorDash and Uber Eats added to their

tally after cities like New York capped delivery fees at 15% percent.

We're always using these apps as a consumer and not the other

way around where we're like, OK, we'll pay the extra five or six bucks convenience fee, but you

don't see what's happening on the other side.

We're both engineers by education and our careers were in engineering, and then we actually met our

previous company where we worked as sales engineers, and then a month before the pandemic, we

bought Uptown Poké and we became the new owners.

By the time we got a feel for the way things operated with the business and making those little

adjustments here and there, it was lockdown.

After cities and states banned indoor dining in March of 2020 restaurants around the country

had to figure out new ways to stay in business.

In the pandemic environment, one of the most important components of maintaining what sales

there are is dealing with what the industry calls the off-premises market, and that

includes, for example, takeout delivery, drive-through, curbside, food trucks

and catering. The one thing that the pandemic has done for the industry is basically

accelerate more usage of that off-premises market.

The majority of online orders are coming from third party apps like DoorDash, Grubhub and Uber Eats.

An analysis from Second Measure shows that nearly half of U.S.

consumers have used one of these food delivery apps in February of 2021.

Dana and Eric started using these apps as soon as they took over Uptown Poké, a month before the New

It was a move they felt they had to make to stay relevantand in business, especially in New York

City, which is home to over 20,000 restaurants.

We feel like we're very small fish in that area.

Third-party delivery companies have a base of customers.

Right? People are scrolling up and down trying to figure out where to order food from.

My restaurant is based on the working class people of New York.

Working class people like myself, we used their part delivery companies.

Now, maybe as we get familiar with the restaurant, we will start to order directly from them.

But there are some restaurants that are in our community that we don't know about.

So for us at Feildtrip, we use third party deliveries for new people to figure out who we are.

There's a saying in the restaurant industry, the demographics is destiny, and that's entirely true.

And the demographics continue to trend towards pickup and delivery.

Pre pandemic, over 60 percent of all restaurant traffic was off

premises. That 60 percent pre pandemic in the second quarter of 2020

Subtitles ListPlay Video

Are DoorDash, UberEats Good For Restaurants?

process

tough

figure

pandemic