I stopped ordering delivery at least a year ago. If I'm not willing to go pick it up then I don't want it that badly. Saved me a ton of money on delivery fees and tips, as well as just making it more convenient to cook whatever I have at home.
Here in Indonesia, our food delivery never costs more than $5 (most are under $3), including delivery, tax, service & fees. Restaurants are not allowed to raise menu prices for apps, and tipping is not the cultural tumor that it is in the USA.
Median income in Indonesia is 50 to 75 percent less than in America though. Food delivery is a luxury and should be used sparingly no matter where you live.
I seriously didn't think this many people used these services. The only delivery service we use is still pizza, and the store is less than 5 mins away so it's cheaper to pick up usually.
@@LogicallyAnswered I worked for 15 years delivering pizza and Chinese food for individual restaurants. The economics of these delivery companies make no sense. I knew that the first time I heard of the concept. There is just no way they can be profitable without being very very expensive.
A lot of people became addicted to ordering after the pandemic. It's so expensive too, but apparently lots of millennials and gen z would rather have it delivered to sit at home instead of saving 15-40 bucks by getting it themselves
@@Jordan-Ramses Yeah. There are sooooooooooo many companies and startups that are essentially subsidising uneconomical products and services using investor money for the consumer. Eventually this will fall apart since the low price is literally the only thing keeping them relevant but for the time being, people can enjoy this ridiculous market and the fruits it provides.
As an Uber/UberEats driver in Edmonton, Canada for 7.5+ years now, I can tell you with certainty that gig work drivers have been getting paid less and less and less over the years. By a long shot. The difference in pay from today to 7 years ago is substantial. And costs to buy food on the apps is actually getting insane. I used to order a lot of UberEats to my place; like 3 to 4 times a week. But now I only order it like 4 to 6 times a month; and this is with 30% off every order (because I am a Diamond UberEats driver)! So even with 30% off, it's STILL too expensive to order delivery. It's insane!
I started when it first came to the US. You could actually make real money. Now I just grab a few runs when i need $20 and don't have anything else to do.
@@jerbear7952 I hear you there. Now-a-days, acceptance rate has plummeted, where-as back in the day, I could literally accept every single order that came in. Now, I accept LESS than half that come in. But, today I decided to go out this afternoon for 2 hours and managed to bring in $58.61, so just shy of $30/hr; can't complain about that. But then you see a lot of order for $3, but you will never make $30/hr accepting these craptastic orders, lol. I tend to focus on $10+ when possible, or at least high single-digits like $8 minimum, unless it's taking me back home.
@@weird-guy you are absolutely correct, I will not deny that, lol. I haven't ordered myself UberEats in over 2 weeks, so I think I'm on the right track! 😊 Groceries are INSANELY cheaper; even despite the fact that groceries have been going up.
I manage a restaurant. We ditched delivery 2 years ago and haven’t looked back. It was a pain in the ass for everyone. The platforms take 30-40%. The people who put in the work getting the orders together boxed and bagged make nothing, the tips and delivery fees all go to the driver. We would get these delivery orders in the middle of the rush which would disrupt the entire flow of the kitchen. After we canceled all the platforms, Grubhub set up several dummy websites without our permission where the customer would place a delivery order with ridiculous mark ups, and then the driver would call the restaurant to place the order. And then the Grubhub credit card the driver had would decline which would take an hour to sort out, all the while $400 worth of food is are slowly dying in two bags at the host stand. And then the customer blames us for cold food and the long wait when we didn’t even want this to begin with. I had to submit a request in writing for them to take down the dummy sites. I absolutely hate hate hate delivery services.
Starting acting unethically to me is typical of bad business models.The issue is that the BM is hardly sustainable from the very delivery app standpoint. The economics simply don't work to me (happy to be convinced of the contrary with good arguments, of course) or are linked to impossible to obtain scale, for which they're burning VC money like crazy, until either strong consolidation or a necessary BM shift occurs
All the delivery fees absolutely don't go to the driver. I think we get like $2 from the delivery fees, and everything else is pocketed by the doordash. We don't make shit.
My favorite video you've ever done. I'm a business minded person and how these apps/services have survived baffles me. I'm not an environmentalist by any stretch and how these apps/services have survived government scrutiny baffles me. It's all just a house of cards waiting to crash. The pandemic probably artificially lengthened these services life spans
I think a lot of the revenue comes from people simply using the app. Like drivers have it running for hours on end and the app knows exactly where they are at all times. It's all about control and monitoring people. As a driver it's probably my most used app
Almost certainly the pandemic was a huge factor in their survival. That's why they have been so widely adopted. They really are a waste of money though.
I find it pretty hard to believe that 86% of Americans have used a delivery app in the last month. Given a lot of the country is pretty rural still with no options and that many in cities can’t afford the expense. I’m a middle income millennial in the suburbs of a big city and it’s probably been 6-8 months since I’ve used one of those apps
Credit card debt is very real also the majority of people are in cities or urban areas So while your small farm town in the mid west might not have access to delivery that don't mean much when very town like it accounts for about 10% tops of the nations population
I also find this hard to believe as well, I suspect this number is for people living in one of the major cities, or are only for people who have smart phones. Even in that case I find it hard to believe. The average American makes nearly 55 food delivery orders annually, spending almost $1,850. The average cost of an order is $33, which implies its an order for more than one person, but let’s assume its for one person only. Delivery fees, service fees, and tips make up roughly 36% of food delivery costs (an average of $654 each year per customer). The average person has 1095 meals per day, three per day. This means a person may have 55 food deliveries per year, but they also have to obtain a meal 1040 using other sources per year as well. This means only 5% of meals use home delivery. If we assume a person spends $30 per day on meals, which they prepare at home, they would spend $10,950 per year. This means they spend 16% of their entire budget on home delivery, which means its expensive, but not over the top. I am not a fan of home delivery services which are not part of a restaurant, but they do provide a service which some people find useful. I personally feel the big losers here are the restaurants, as to compete they have to offer the service and this takes a big cut from their profits.
Post Pandemic I can definitely believe this number. A lot of people have gotten used to delivery. I haven’t picked up my own food in 4 months. Wait times are usually 20-40 mins, quite reasonable aswell.
I noticed the massive markups the first time I tried these services. Haven't touched them in half a decade because of that. I seriously don't understand why anyone would use them. Do people just hate money?
The inflated goods value varies by location. When a location with low mark up is paired with the insane specials(60% off+free delivery on $11+ for eg) these apps provide that don't exist in physical stores you can make a killing off of them. Outside of these perfect storm events it is a tremendous waste of money though.
Which is why it's so important to support your local merchants and grocery stores, as opposed to relying on food delivery companies like Uber and GrubHub, Postmates, DoorDash,, etc. 👍
My sister-in law and her husband supplement their retirement income by delivering food for Door Dash. It's not just college students who do food delivery.
I'm gonna be honest, I don't see any college students doing food delivery at all anymore. They tend to realise that it sucks pretty quickly and quit in the first month. If you keep delivering after the first month it tends to mean that you need the money and can't really get a job doing anything else.
I’m 47 and run a home business. I deliver on the apps for entertainment when I would otherwise need a break. It’s also changed my mood…. It gets me out on an adventure. But the miles on my car depreciates it, repairs and gas… no $$ in it. Yesterday I fell and skinned my knees and twisted my ankle… I could have done without that lol
When I stopped using restaurants and started only cooking my own food, I began to have so much extra money that I now have a virtually unlimited budget at the grocery store. I buy anything that I might like to eat. Haven't had anything delivered since at least 2016.
Thanks for finally pointing out the painfully obvious, Hari. While extrapolating these costs into the future is just a temporary, academic exercise, what really matters is that none of these food delivery services make ANY economic sense. I often eat at Veggiegrill and they contracted with Über Eats, Grubhub and DoorDash. Before the pandemic already I regularly ended up with the restaurant giving me loads of extra bags of food that they had prepared but which had not been picked up for delivery. It does not take an MBA to figure that practically all these services make no money, feigning huge losses because of combing their books and the restaurants also take sizable deductions while the customer pays 40-85% more than what they would have by going to the location. This is what happens when government rewards a loss enterprise by not charging them taxes. - Sounds familiar... oh yeah, the "We Work" model! 😂😂
Mindless silicon valley tech startups for some reason get crazy investments, even when the core business model is fundamentally flawed. The thinking being that maybe, eventually they will start making money (like Amazon).
I use food delivery apps a few times a year for the fun of it. The reason being was how I noticed the disparity in prices on the apps vs. the places I knew. I would eventually call the restaurant and go and pick up the food myself
Never once used these apps or had the desire too, they've always seemed stupid to me. During COVID I just drove to restaurants and they just brought food to my car. Very straightforward, and I don't have to sign up, give all my personal information to and download some stupid app - make a phone call and pick it up.
I actually tried the pick up option a few months ago. It was stupid, you can't apply any of the discounts, so the end cost was actually 20% more expensive and I have to walk around finding a ghost kitchen that I can't find directly on Google Maps.
Well damn. That defeats the purpose. Some restaurants in my area will actually encourage you to order through their websites and pick up your food so I just do that.
Over a year ago now, I use to order and deliver from DoorDash. The pay is just so inconsistent and it’s so expensive I stopped using the service on either side and have no regrets.
I was going to use a delivery app like eight months ago, but the prices shocked me so much I haven't even thought of it again. It was literally more than double the usual price, which makes sense based on what you say in the video. I hope in the future they manage to use robots to deliver foods somehow so that the process actually gets efficient
This points to a fundamental problem with how our cities and suburbs are designed: without a car, it becomes impractical (or sometimes impossible) to get around and pick up your own food.
@@InventorZahran right now the only store that is in walking distance from my home is Family Dollar if more stores were in walking distance I would be able to cook more as well as get fresh fruit and vegetables more often because I love to cook and eat foods like that because that’s how I was raised but I can’t because fresh fruit and vegetables are so expensive
Exactly. And even for someone with a car, I still use delivery a lot. I hate prep work, I hate to cook. When I get home from work and think, cook myself or use delivery, delivery often wins. The car expense is both sides, not just the delivery side. If a store is 4 miles away, that’s about $5 cost for me to drive both ways, not to mention time lost picking it up rather than relaxing after work. Delivery is expensive but cooking and picking food up oneself also has costs. Sure, delivery is more expensive but not as dramatic as portrayed in this video. And lastly, I live alone. I can’t tell you how many times I’ve had to toss out foods that went bad before I could use them. Make a salad, half of all the ingredients sit there and go to waste unless I make another big salad soon. Same for cold cuts, bread, and other fresh foods. Shopping for one is logistically very difficult to not end up with food waste.
I use to do UberEATS delivery. The pay they pay drivers sucks and the tips people leave are based off the amount the food was if they left a tip at all. So, if someone orders $5 worth of food from McDonald's, a 20% tip is $1 and sometimes the delivery is 10 minutes away. From my experience, if it weren't for tips, then I would've broken even after the mileage deduction. During the shutdowns in 2020, it was good for delivering as a driver.
It was easy money during the pandemic but as soon as it became saturated with too many deliver drivers/riders, the pay got horrible. The paradox of this; if you brag that you've made a lot of money then you will attract more people to do it thus saturating the market and making less. Not to mention, you will get taxed up the a-hole come tax season
One minor correction. The government allows $0.52/mile in depreciation type expenses, so the self-employment taxes don’t hit as hard because your “income” is greatly reduced. The real hit comes in you depreciating your car by 20-40% or more per year, so a cheap car is a must.
I used to drive for Uber Eats. I don't know how it is with other apps, but I haven't heard much better things. When I started out, I was working as a cashier for minimum wage during the day. If my shifts didn't end too late, I'd hop online and do the dinner rush. Decent nights earned me about $100, occasionally up to $140. The average job would pay $10-15 for 30-45 minutes of work, so it wasn't too bad. Then the cuts started coming in. First $8, then $5, then $3 or less for the same amount of work. Nobody ever raised their tips because nobody knew this was happening. I was able to quit, though, which is more than I can say for some of my fellow drivers. Imagine becoming dependent on the only semi-decent-paying job in your area that let you work whatever hours you wanted, only for them to brazenly cut your paycheck in half. It got a lot of people trapped. As for the thing where drivers cancel at long lines, it's because it doesn't make financial sense to wait an hour in line for food only to make $5 for your patience, especially when the customer will get angry and revoke your tip when their food arrives way late. I just stopped going to certain restaurants because I would have emptied my pockets if I didn't. One thing that started becoming a trend around when I quit was "tip-baiting". See, when drivers stopped accepting low-ball jobs, customers responded by putting big tips on their orders. Then, once the food was delivered, they'd revoke the tip, leaving the deliverer with maybe $3 for an hour of work. (You can cancel your tip for up to an hour after your food is delivered.) So in short, if you're gonna order from these apps, tip your drivers well. You don't know how badly they're struggling to make ends meet.
That's a good example of why people shouldn't depend on these apps for anything more than side income. They constantly change and it's usually not in your favor.
I’ve never once used a food delivery app. Heck, I don’t even get pizza delivered unless I’m hosting a party and can’t go get it myself. The price increases, delivery fees, and tips are a big percentage on top of already rising food prices. I’d rather go eat out instead. Or just cook from home, which is healthier and cheaper. 🤷🏼♂️
Great video. I work as Shift Manager in a fast food restaurant but not US, in Poland. While I don't know the exact numbers in my country I talked a few times with my higher-ups, every time I heard that having delivery is barely worth any money for us since they (delivery apps) charge a lot of. And givent the fact that just COS (Cost of Sales - the cost of all the ingredients of a given product,) for a burger is around 35%, charging additional 20-30% is massive. And as you said running the restaurant is really expensive and rarely super profitable, not only you pay for all the ingedients but you also cover cost of labour, all the bills, rent, not to mention every time something gets broken it costs arm and a leg to get repaired (sometimes repair services charge the equivalent of 100 dollars JUST for arrival, even if they can't fix it). At this point I'm convinced the only reason every restaurant and fast food is on these delivery apps is for the sake of consumer recognition and having bigger "sale numbers" in Excel since it does not generate any meaningfull income for the restaurant. Also, one more thing about scamming the restaurants - when we sing a deal with delivery app they take for themselves all the complaint and refund management. Basically, if anything is not right with the order, EVEN if it's the restaurants fault - the only official way for a customer is to file a complaint with the delivery app. But they made the process so convoluted and in some cases almost completely inaccessible that all of the blame falls on the restaurant. I get at least 1 call a day from an unsatisfied customer and only thing I am able to do is apologize and direct them to the delivery app customer service. And as a bonus I get to listen how shit I am and that I simply don't want to help them and it's all my fault and they (the customers) want to have their case resolved now, by phone, not by some shitty Uber customer service (which is reasonable, if I was in their position I would expect the same, quick refund and have it off my mind). So having the delivery in your restaurant comes with inherrent risk of having customer backlash in the "opinions and rating" section where all can write how shit you are because they waited 1 hour for food that none driver came to collect and deliver, it was cold and so on. And you sit there, shouting at a screet "It's not even my f**king fault, I do not hire these drivers, delivery app is"...
Yeah, you're right. I feel bad for restaurants. They really have no choice. I stopped using the apps when I heard how they were screwing restaurants and with the rise in prices. None of it really makes any sense when you stop to think about it.
You forgot about the Ghost kitchens like Denys “the meltdown” or Chuck E Cheese’s “pachually pizza”. They take additional business away from smaller restaurants. I almost ordered a moon over my mihami from the meltdown lol
Thanks for making this video! In India, this became a big issue for the country's Restaurant Owners Association that they are appealing people to call the restaurants directly rather than ordering over food delivery apps. A tiny minority of restaurants who are popular in their locality have also ditched listing on the apps as well. Lastly, Domino's Pizza here still retains the delivery model you were referring to even if the order was made over a third party app
I don't understand this obsession that americans have with retirement. Like "if you never hang out with friends you would get X more amount of money in retirement", "if you would never buy dessert you would get X money for retirement" etc. I mean what's the point of being alive at that point? Just go to a monastery do nothing and you'll save a lot of money.😂 I understand retirement is important, but I mean it's just one part of your life, why make it the center of everything. It's not even guaranteed. I order delivery simply because it's part of the pleasures of life, I don't think it's a scam in itself, it's just like spending money on movies or a theme park.
As far as I know most Americans don't have any government retirement programs so they have to save money for retirement themselves otherwise they'll never be able to afford to retire.
I was using food delivery apps once a week(for my roommate and i) , but 2 weeks ago i was comparing the price of our meal at the actual restaurant vs the delivery cost and i was freakin shook . The difference was enough for us to add basically an entire extra meal for 1 on to our order (there are 2 of us) . It was basically then that i decided to stop using these apps altogether , we live stupid close to a bunch of food places anyway !
7:43 As someone who is familiar with self-employment taxes I was sitting here like "That's the number before taxes! TALK ABOUT THE TAXES! TELL ALL THESE PEOPLE THE FRESH AND JUICY HELL THAT IS SELF-EMPLOYMENT TAXES!"
I very rarely use delivery. I prefer to go pick it up. It doesn’t take long, saves me money, and the small inconvenience isn’t too bad it encourages me to cook instead.
I'm unable to order food online. The meals I prepare in person are so tasty and delightful that I walk to the kitchen at the first sign of hunger. If the delivery food only had some taste or made you feel better after eating, that would be a dream. But no - it tastes like oily salted paper, so I eat my pizza or my parmigiana tonight. Thank you Harry for the video - not everyone is at risk tho... Greetings,
I'm 30 and from Czechia. By the time I reach retirement age, retirement won't exist anymore. They'll work us until death. And the sooner that happens, the better. So what's the point of constantly trying to save up on everything? Just live and enjoy your life while it lasts.
@@PeruvianPotato Maybe, but it's true. Our economy is getting worse every year, cost of living and renting is too high for most young people to be able to live on their own, owning a place or house is just a nice dream to have and it's going to get much worse. Our government is planning to take pensions away from people and raise the retirement age. If on top of all that + being permanently stressed about work and future you're trying to save up on everything, that lowers your enjoyment of life even further and creates depression and anxiety. I should add that I'm only able to live on my own in a tiny half empty rented apartment because I'm disabled and receive disability pension on top of my part time wage, which alone wouldn't even allow me to cover rent, electricity, internet and phone bills.
I remember working for door dash and man oh man, that was before they let you keep all your tips. I remember working hours, waiting at stores for late orders and a full days of work was at most 90$ but that didn’t count for all the times I had to fill up my tank
You still don't *really* keep all of your tips. The more the customer pretips, the less doordash offers in pay. Doordash can't get someone to pick up an order for $2 if there's no pre-tip so they have to offer higher. But if someone tips five bucks doordash is adding only two. I recently delivered three orders for doordash. They paid me $7 total. The tips made up the rest of course.
People enjoy the small amount of power they have at their fingertips, knowing some unknown Nepalese student is going to risk their life driving an uninsured scooter in the rain to get you your tacos at 3am so you can stave off a hangover, does make the average idiot who doesn't understand disposable income briefly feel like a king. And yes, that is basically the entire business model in a nutshell.
I was used to order food but since some time ago I began to go directly to eat to my local shopping mall since I found it more enjoyable. This whole situation seems to work "better" where I live, the prices increase for having the food for delivery isn't that much as the US as far as I know, and the apps here don't list any restaurants if they don't want to be there. I still remember that time where I submitted a restaurant that is really close to my house hoping it to be included, but even if you do that it won't be listed if they don't want that. Also now we have the Uber One subscription which makes any order above 8.74 to have free delivery including service fees and whatnot.
This begs a question: why can't the restaurants themselves invest in creating their own delivery service like the pizza chains do? Is it because going against corporations like Uber Eats or Doordash would be too costly?
When you look at it, its cheaper to get a 3rd party to do it since delivery people does not count as 'employees' within your own company and wouldn't need to spend more money on company benefits on them such as "holiday pay" or pensions.
Have a restaurant, did this exact thing and guess what people don't want an app for every restaurant they order from. It could be maybe 10 apps just for food, when instead you can just have uber eats. And also a giant pain in the ass to get apps on iOS too and on Android at the same time. A ton of work, for people to not download the APP
Getting a developer to create an app and site that can create a UI and manage all the api calls involved along with server and storage costs and the app store costs will cost six figures in one year
To be honest, if that restaurant doesn't deliver, we usually tell them that we'll pick up the food and have it to go, so this way we can eat it at home. We used to have Pizza delivery guys pick it up for us and bring it to our home. But, by the time the 2010s came around, we noticed many of them would often have pizza cold or room temperature, which was something my mom hated. So from 2015 onward, we would just tell the places that we'll pay and pick it up at their restaurant instead of having those people deliver it for us. Also, I hate tipping. it's like giving the employee more money than the food itself when the managers should be the one to pay the employees more money for the amount of work they do for serving and cooking food. So I rather pay them what the actual price is rather than tipping. I'm glad some countries like south korea and japan made tipping illegal because I get their viewpoint of not paying their employees very well or end up getting more money than the business itself.
Considering how everything is pretty much a scam these days. I don't own a vehicle, I figure since I don't have to pay for gas, insurance and upkeep why not order food sometimes and the apps are easy. I figure eventually they'll fall out of favour so might as well use them. It's not like i use them every damn day but once or twice every month is not that bad.
I have never used food delivery apps and never will. I'll just go get it myself if I want it that badly. If I don't want to go out then I'll eat what I have at home, not pay a stupidly high markup in the hopes that maybe someone will actually deliver something.
I don't know how it is now but it was awesome when I was in college. I could pull in $200-$400 a day and have the money in my bank account instantly after each delivery. I made $80,000 one year and didn't have to pay a single dollar in taxes and got free healthcare through the affordable care act. Maybe it's gotten worse since a few years ago but probably not by too much. The trick to making bank with these apps is to run multiple accounts with multiple different apps at the same time and strategically reject low tip offers and to put your expenses super high for taxes like the startup up cost of your business (value of car, rent for "home office"/bedroom to plan out delivery routes, business lunch meetings with potential doordash customers etc)
I only used DoorDash once or twice when I used to work in retail, because my friends did it for fun. I was curious to try food from a restaurant I never ate from before, so I figured why not? But every time I saw the price my jaw dropped... I was just working for barely above minimum wage, and so I decided I wasn't going to order food delivery anymore. It's so convenient for people especially in Gen Z (because we are becoming so lazy and/or don't like to leave our homes, etc.), that I can see it becoming a habit hard to break.
On a side note, Gen Z has issues with spending money all the time (especially for expensive items), which is so shameful especially as inflation continues and we will keep generating waste on our planet. I have learned to stop spending as much money to an extent, but once in a while I buy something nice for myself I know I will use.
Great research! ✅ I enjoy working as a delivery person and was only a consumer once. I think there are many flaws in these delivery apps, yet with the right guidance for delivery drivers, it can be useful for someone else's busy life. Also, I have a delivery blueprint coming soon. 😀
Thanks for raising awareness on the inflated menu prices on the delivery apps compared to the restaurants website. I wish there was a food delivery app that didn't play shell games with everyone. Don't charge the restaurants anything and don't inflate the menu prices. Just show what the delivery fee is up front. The customer should pay the full cost. If restaurants didn't pay anything for orders then there would be more variety on the apps.
It was wrong to exclude gas, depreciation and repair expenses which should come to about 1/3 of top line numbers on average. In reality, food delivery job is actually much worse than minimum wage job. And that makes sense. It requires even less skills than minimum wage jobs.
This sounds like a well-researched video. If I had to nitpick, may be consider some people are not able to cook for themselves or pick up food due to disability 😕😕😕
If there was a monopoly, it'd definitely be profitable... the reason it is not as profitable is because there are a lot of companies... i'd like to think it's like streaming services
“Paid time off, sick days, or other “perks” “ what a weird sentences as a European, it still baffles me that such things exist in such a rich country 😂😢
I quit using food delivery services when they sent me an email with a very large number in it, bragging to me about how much I "saved" and "took advantage of their specials". They should probably not send those out to people if they have "saved" over $1000.
I love these services. I don't use them often as I like cooking alot(it's fun) but the VC money that allows for these unrealistic, nonsensically cheap specials and deals is incredibly convenient especially when they align with periods where I have no time/ingredients at all to prepare anything. I just bought a pizza today that came with another, identical full sized pizza for free AND had free delivery and I have been to the actual store and the pizzas are like, 15-20% more expensive on the app meaning I saved like 70-75% on my order compared to buying physically. They are letting me rob them from the comfort of my home and couldn't be more happy to oblige. They are great(for the consumer) when you ONLY use them when they have stacked specials you can capitalise on.
@@bestariel._.yuh029 And thats when you exercise discipline and only use the services when they offer VC subsidised specials. It's like credit card rewards and the like, if you are disciplined and can show restraint, you can make great savings on them. Those who cannot do this are not your concern and you should thank them, their lack of impulse control keeps businesses like this going so you can exploit them longer/further.
I’ve always found the food delivery business very interesting. No idea how there can be so many actors on the market and still be profitable. The working conditions are bad, the wage is bad and it’s expensive for the consumer. I think it’s only a matter of time before the industry starts to fail
In Germany, many restaurants want to have their own ordering website or even just a phone number and have the customers benefit from cheaper prices since they don't have to pay commissions, but the big apps make deals that forbid them from offering their food at a better price elsewhere.
Dang I had no clue the statistics were that high on how much people use these food delivery service. I'm a millennial and I have never even used the services. $13 in fees and surcharges???? I try to keep my whole meals to $10 or less when I eat out. lol
Growing up my family never used food delivery apps even now. If we wanted food or a specific food we'd physically go to it's nearest store even if it's literally across the city. It's a habit we've always had and my family dislikes the idea someone could tamper with the food without looking. I've always wanted to try food delivery for its convenience but the idea of its delivery fee scares me.
Glad I wasn’t the only one who noticed the increased prices on apps vs restaurant. But I don’t really like using apps personally because the delivery fee and tip make it not worth it most of the time.
Food delivery does benefit some people, but restaurant delivery generally does not. There are people, like me, who are disabled and who don't have a car. I can't afford one. Delivery from a grocery store is very helpful because before that existed I had to either get a taxi or arrange with someone to get a ride to and from the store. There is no public transportation where I live. So you need to be more specific in your terms. I usually get deliveries from Walmart and try to just get one delivery a month of everything I need.
Not everyone lives in a Downtown where a bunch of food option is available or not everyone owns a Car to go pick food up by themselves. Also, sometimes you just don't wanna change and get out of your place.
I will say as someone who is doing this on top of a full time job it's a great way to make up for overtime pay im no longer getting but it's absolutely a raw deal as a main job.
That’s why my butter chicken 🍗 taste’s shit 😂 Jokes aside, food delivery service even for me a bad deal since it feels like a bad habit for some reason it a literally a black hole in the wallet heck delivers has the worst part of this segment dealing with karen customers, unfixed earnings and health problems. So not a good deal for those Taco Bells Amazing video ❤ By the way, love your new editing style 👍
I've done food delivery once and it cost me over $80, total cost. I prefer to make my own food or if I'm peckish for something in particular, I'll order ahead and leave a digital tip and pick it up myself. Save myself extra on fees and delivery. No point in spending nearly my grocery budget on food delivery
As a driver myself, the tax side of things is HUGELY more favourable here in Australia and health insurance is both unnecessary and much less expensive. Retirement saving (or what we call superannuation) is also partially matched dollar-for-dollar by the government, so it’s still an issue, but less so. The amount of tax breaks we get is pretty crazy too, so it means I pay a pretty insignificant amount of tax. Is it the ideal job from a security and career perspective? No. But as someone dealing with major health issues that keep me from working a more conventional job at the moment, it’s exactly what I need just now.
It's always cheaper to pick up rather than taking delivery apps' service to bring up as they are gonna be cutting a profit on fuel charges. And yes the organisation of this whole operation was barely viable for delivery apps. I never even once order a meal since all these apps have launched. Just installed the apps to get the idea of prices thats it.
I am blown away by the 86% statistic. I have never used a food app. I only know of one friend who does. I'm located really close to restaurants at work in the city, but live in a small town, and we onky have 2 chain places, and i doubt anyone here delivers via an app service. Town of 3000, so I'd pick up, but mostly if I'm going to eat out, I'm going out to eat. Sit in the restaurant, enjoy chit chatting with friends, or family. We make an event of going out. Wild, 86%.
I only order out food like a few times a year at this point (usually when I am sick and somehow have the extra cash). The fees alone make it not worth it and I often find that it's usually cheaper to use the restaurant's website to order pickup. The services often screwed up my orders in the past as well so it's less of a headache when I get my own food.
I stopped ordering delivery at least a year ago. If I'm not willing to go pick it up then I don't want it that badly. Saved me a ton of money on delivery fees and tips, as well as just making it more convenient to cook whatever I have at home.
Same. Homemade, you can't beat that!
same with me the only difference is I NEVER once used delivery services.
Here in Indonesia, our food delivery never costs more than $5 (most are under $3), including delivery, tax, service & fees. Restaurants are not allowed to raise menu prices for apps, and tipping is not the cultural tumor that it is in the USA.
I gotta visit one of these days!
Yeah, the Dutch would have that down to a tee. I thought that country was liberated years ago.
Median income in Indonesia is 50 to 75 percent less than in America though. Food delivery is a luxury and should be used sparingly no matter where you live.
Tipping is not a tumor genius. It's a gratuity, something I'm grateful for personally and millions like me
@@ericchandler9050? More like 87% less.
I seriously didn't think this many people used these services. The only delivery service we use is still pizza, and the store is less than 5 mins away so it's cheaper to pick up usually.
Yep, these apps have become beyond popular
@@LogicallyAnswered I worked for 15 years delivering pizza and Chinese food for individual restaurants. The economics of these delivery companies make no sense. I knew that the first time I heard of the concept.
There is just no way they can be profitable without being very very expensive.
It's the fucking millennial and Gen Zers. They don't get it.
A lot of people became addicted to ordering after the pandemic. It's so expensive too, but apparently lots of millennials and gen z would rather have it delivered to sit at home instead of saving 15-40 bucks by getting it themselves
@@Jordan-Ramses Yeah. There are sooooooooooo many companies and startups that are essentially subsidising uneconomical products and services using investor money for the consumer. Eventually this will fall apart since the low price is literally the only thing keeping them relevant but for the time being, people can enjoy this ridiculous market and the fruits it provides.
As an Uber/UberEats driver in Edmonton, Canada for 7.5+ years now, I can tell you with certainty that gig work drivers have been getting paid less and less and less over the years. By a long shot. The difference in pay from today to 7 years ago is substantial. And costs to buy food on the apps is actually getting insane. I used to order a lot of UberEats to my place; like 3 to 4 times a week. But now I only order it like 4 to 6 times a month; and this is with 30% off every order (because I am a Diamond UberEats driver)! So even with 30% off, it's STILL too expensive to order delivery. It's insane!
I started when it first came to the US. You could actually make real money. Now I just grab a few runs when i need $20 and don't have anything else to do.
You need to learn from drug dealers, never eat your own supply😂
@@jerbear7952 I hear you there. Now-a-days, acceptance rate has plummeted, where-as back in the day, I could literally accept every single order that came in. Now, I accept LESS than half that come in. But, today I decided to go out this afternoon for 2 hours and managed to bring in $58.61, so just shy of $30/hr; can't complain about that. But then you see a lot of order for $3, but you will never make $30/hr accepting these craptastic orders, lol. I tend to focus on $10+ when possible, or at least high single-digits like $8 minimum, unless it's taking me back home.
@@weird-guy you are absolutely correct, I will not deny that, lol. I haven't ordered myself UberEats in over 2 weeks, so I think I'm on the right track! 😊 Groceries are INSANELY cheaper; even despite the fact that groceries have been going up.
Same. I used them a lot during the pandemic but now there's no way to justify the cost and the frustration.
I manage a restaurant. We ditched delivery 2 years ago and haven’t looked back. It was a pain in the ass for everyone. The platforms take 30-40%. The people who put in the work getting the orders together boxed and bagged make nothing, the tips and delivery fees all go to the driver. We would get these delivery orders in the middle of the rush which would disrupt the entire flow of the kitchen. After we canceled all the platforms, Grubhub set up several dummy websites without our permission where the customer would place a delivery order with ridiculous mark ups, and then the driver would call the restaurant to place the order. And then the Grubhub credit card the driver had would decline which would take an hour to sort out, all the while $400 worth of food is are slowly dying in two bags at the host stand. And then the customer blames us for cold food and the long wait when we didn’t even want this to begin with. I had to submit a request in writing for them to take down the dummy sites. I absolutely hate hate hate delivery services.
Them calling and placing an order is insane. Shouldn't be legal tbh
@@zaidlacksalastname4905 it is illegal.
Starting acting unethically to me is typical of bad business models.The issue is that the BM is hardly sustainable from the very delivery app standpoint. The economics simply don't work to me (happy to be convinced of the contrary with good arguments, of course) or are linked to impossible to obtain scale, for which they're burning VC money like crazy, until either strong consolidation or a necessary BM shift occurs
All the delivery fees absolutely don't go to the driver. I think we get like $2 from the delivery fees, and everything else is pocketed by the doordash. We don't make shit.
@@myflipnotes So it’s even worse than I thought. They take the huge 30-40% commission AND the most or all of the delivery fees.
I love the way you say that $4.2million is your entire retirement. I have less than £20,000 for my retirement with only 10 years to go.
Yikes, you better get on that
I can top that. I'm over $20k in debt in being an essentially unpaid full-time caregiver for the past 16 years.
I'll add that I've got something more valuable than money out of it lol. Now, if only I can get around to sharing THAT elusive wealth.
Don't fall for this investment scam
My favorite video you've ever done. I'm a business minded person and how these apps/services have survived baffles me. I'm not an environmentalist by any stretch and how these apps/services have survived government scrutiny baffles me. It's all just a house of cards waiting to crash. The pandemic probably artificially lengthened these services life spans
Really appreciate that Danner!
Agreed
Come learn how to short this non sense
In that lengthened time if they do not get a viable solution and strategize the operation it would not sustain.
I think a lot of the revenue comes from people simply using the app. Like drivers have it running for hours on end and the app knows exactly where they are at all times. It's all about control and monitoring people. As a driver it's probably my most used app
Almost certainly the pandemic was a huge factor in their survival. That's why they have been so widely adopted. They really are a waste of money though.
This is why I always select "pick-up" since it saves me money and it gives me something to do
Yea this is the way to do it
Not when you're ordering from place that is 10km away
I find it pretty hard to believe that 86% of Americans have used a delivery app in the last month. Given a lot of the country is pretty rural still with no options and that many in cities can’t afford the expense. I’m a middle income millennial in the suburbs of a big city and it’s probably been 6-8 months since I’ve used one of those apps
Credit card debt is very real
also the majority of people are in cities or urban areas
So while your small farm town in the mid west might not have access to delivery that don't mean much when very town like it accounts for about 10% tops of the nations population
I also find this hard to believe as well, I suspect this number is for people living in one of the major cities, or are only for people who have smart phones. Even in that case I find it hard to believe.
The average American makes nearly 55 food delivery orders annually, spending almost $1,850. The average cost of an order is $33, which implies its an order for more than one person, but let’s assume its for one person only. Delivery fees, service fees, and tips make up roughly 36% of food delivery costs (an average of $654 each year per customer).
The average person has 1095 meals per day, three per day. This means a person may have 55 food deliveries per year, but they also have to obtain a meal 1040 using other sources per year as well. This means only 5% of meals use home delivery.
If we assume a person spends $30 per day on meals, which they prepare at home, they would spend $10,950 per year. This means they spend 16% of their entire budget on home delivery, which means its expensive, but not over the top.
I am not a fan of home delivery services which are not part of a restaurant, but they do provide a service which some people find useful. I personally feel the big losers here are the restaurants, as to compete they have to offer the service and this takes a big cut from their profits.
Post Pandemic I can definitely believe this number. A lot of people have gotten used to delivery. I haven’t picked up my own food in 4 months. Wait times are usually 20-40 mins, quite reasonable aswell.
Source: trust me bro
There are far more ppl living in big cities than rural bud
I noticed the massive markups the first time I tried these services. Haven't touched them in half a decade because of that. I seriously don't understand why anyone would use them. Do people just hate money?
Stupid/lazy people tax, with the extreme rare exception
Some people seem to value convenience more than money...
The inflated goods value varies by location. When a location with low mark up is paired with the insane specials(60% off+free delivery on $11+ for eg) these apps provide that don't exist in physical stores you can make a killing off of them. Outside of these perfect storm events it is a tremendous waste of money though.
I didnt notice that markup for several deliveries. When I noticed I stopped ordering too.
@@InventorZahran There are many cheaper things that can make your life more convenient.
Which is why it's so important to support your local merchants and grocery stores, as opposed to relying on food delivery companies like Uber and GrubHub, Postmates, DoorDash,, etc. 👍
My sister-in law and her husband supplement their retirement income by delivering food for Door Dash. It's not just college students who do food delivery.
I'm gonna be honest, I don't see any college students doing food delivery at all anymore. They tend to realise that it sucks pretty quickly and quit in the first month. If you keep delivering after the first month it tends to mean that you need the money and can't really get a job doing anything else.
The largest demographic doing delivery for UberEats in America are men, 55-72 yo!
I’m 47 and run a home business. I deliver on the apps for entertainment when I would otherwise need a break. It’s also changed my mood…. It gets me out on an adventure. But the miles on my car depreciates it, repairs and gas… no $$ in it. Yesterday I fell and skinned my knees and twisted my ankle… I could have done without that lol
When I stopped using restaurants and started only cooking my own food, I began to have so much extra money that I now have a virtually unlimited budget at the grocery store. I buy anything that I might like to eat. Haven't had anything delivered since at least 2016.
Thanks for finally pointing out the painfully obvious, Hari. While extrapolating these costs into the future is just a temporary, academic exercise, what really matters is that none of these food delivery services make ANY economic sense. I often eat at Veggiegrill and they contracted with Über Eats, Grubhub and DoorDash. Before the pandemic already I regularly ended up with the restaurant giving me loads of extra bags of food that they had prepared but which had not been picked up for delivery. It does not take an MBA to figure that practically all these services make no money, feigning huge losses because of combing their books and the restaurants also take sizable deductions while the customer pays 40-85% more than what they would have by going to the location.
This is what happens when government rewards a loss enterprise by not charging them taxes. - Sounds familiar...
oh yeah, the "We Work" model! 😂😂
Wow, I didn't see that coming. But my question is, why does this business even exist? When all of the apps are just loosing money, what's the point?
You don’t have to be profitable to boast a super high company valuation haha :)
Mindless silicon valley tech startups for some reason get crazy investments, even when the core business model is fundamentally flawed. The thinking being that maybe, eventually they will start making money (like Amazon).
The apps are losing money not the owners
Fluff up emplyment stats.
I never use them. Thank you for giving data to support what I intuitively knew already.
Glad you did a video on this love the work man keep it up
Glad you liked it man!
86% of people place an order once a month???? I’m 28 and have never used any delivery service, airbnb etc
Part of the minority haha
im part of the minority too, 51 and never used a food app...
I use food delivery apps a few times a year for the fun of it. The reason being was how I noticed the disparity in prices on the apps vs. the places I knew. I would eventually call the restaurant and go and pick up the food myself
It's basically double the price of the actual food you ordered. A burrito at Chipotle might be $14 and then delivery fees make it $25
Never once used these apps or had the desire too, they've always seemed stupid to me. During COVID I just drove to restaurants and they just brought food to my car. Very straightforward, and I don't have to sign up, give all my personal information to and download some stupid app - make a phone call and pick it up.
Glad that I have never used any of these apps, and NEVER order out.
I actually tried the pick up option a few months ago. It was stupid, you can't apply any of the discounts, so the end cost was actually 20% more expensive and I have to walk around finding a ghost kitchen that I can't find directly on Google Maps.
Well damn. That defeats the purpose. Some restaurants in my area will actually encourage you to order through their websites and pick up your food so I just do that.
Over a year ago now, I use to order and deliver from DoorDash. The pay is just so inconsistent and it’s so expensive I stopped using the service on either side and have no regrets.
The resteraunt owners have to charge more for their food on delivery apps because the service takes a large % ... just passing it on
I was going to use a delivery app like eight months ago, but the prices shocked me so much I haven't even thought of it again. It was literally more than double the usual price, which makes sense based on what you say in the video. I hope in the future they manage to use robots to deliver foods somehow so that the process actually gets efficient
As someone without a car, food delivery services are definitely useful.
Agree
This points to a fundamental problem with how our cities and suburbs are designed: without a car, it becomes impractical (or sometimes impossible) to get around and pick up your own food.
@@InventorZahran exactly
@@InventorZahran right now the only store that is in walking distance from my home is Family Dollar if more stores were in walking distance I would be able to cook more as well as get fresh fruit and vegetables more often because I love to cook and eat foods like that because that’s how I was raised but I can’t because fresh fruit and vegetables are so expensive
Exactly. And even for someone with a car, I still use delivery a lot. I hate prep work, I hate to cook. When I get home from work and think, cook myself or use delivery, delivery often wins. The car expense is both sides, not just the delivery side. If a store is 4 miles away, that’s about $5 cost for me to drive both ways, not to mention time lost picking it up rather than relaxing after work. Delivery is expensive but cooking and picking food up oneself also has costs. Sure, delivery is more expensive but not as dramatic as portrayed in this video.
And lastly, I live alone. I can’t tell you how many times I’ve had to toss out foods that went bad before I could use them. Make a salad, half of all the ingredients sit there and go to waste unless I make another big salad soon. Same for cold cuts, bread, and other fresh foods. Shopping for one is logistically very difficult to not end up with food waste.
I use to do UberEATS delivery. The pay they pay drivers sucks and the tips people leave are based off the amount the food was if they left a tip at all. So, if someone orders $5 worth of food from McDonald's, a 20% tip is $1 and sometimes the delivery is 10 minutes away. From my experience, if it weren't for tips, then I would've broken even after the mileage deduction. During the shutdowns in 2020, it was good for delivering as a driver.
It was easy money during the pandemic but as soon as it became saturated with too many deliver drivers/riders, the pay got horrible. The paradox of this; if you brag that you've made a lot of money then you will attract more people to do it thus saturating the market and making less. Not to mention, you will get taxed up the a-hole come tax season
I noticed that once everything started opening back up and people were able to go about their normal lives, UberEATS started to slow down.
@@KingDayDayDay00 Does the milage deduction help take the bite out of taxes?
@@dannydaw59 yes.. its 15.x percnt of "profit".. so if you throw in all your exspenses and inflate it enough.. no taxes
One minor correction. The government allows $0.52/mile in depreciation type expenses, so the self-employment taxes don’t hit as hard because your “income” is greatly reduced. The real hit comes in you depreciating your car by 20-40% or more per year, so a cheap car is a must.
I used to drive for Uber Eats. I don't know how it is with other apps, but I haven't heard much better things.
When I started out, I was working as a cashier for minimum wage during the day. If my shifts didn't end too late, I'd hop online and do the dinner rush. Decent nights earned me about $100, occasionally up to $140. The average job would pay $10-15 for 30-45 minutes of work, so it wasn't too bad. Then the cuts started coming in. First $8, then $5, then $3 or less for the same amount of work. Nobody ever raised their tips because nobody knew this was happening. I was able to quit, though, which is more than I can say for some of my fellow drivers. Imagine becoming dependent on the only semi-decent-paying job in your area that let you work whatever hours you wanted, only for them to brazenly cut your paycheck in half. It got a lot of people trapped.
As for the thing where drivers cancel at long lines, it's because it doesn't make financial sense to wait an hour in line for food only to make $5 for your patience, especially when the customer will get angry and revoke your tip when their food arrives way late. I just stopped going to certain restaurants because I would have emptied my pockets if I didn't.
One thing that started becoming a trend around when I quit was "tip-baiting". See, when drivers stopped accepting low-ball jobs, customers responded by putting big tips on their orders. Then, once the food was delivered, they'd revoke the tip, leaving the deliverer with maybe $3 for an hour of work. (You can cancel your tip for up to an hour after your food is delivered.)
So in short, if you're gonna order from these apps, tip your drivers well. You don't know how badly they're struggling to make ends meet.
That's a good example of why people shouldn't depend on these apps for anything more than side income. They constantly change and it's usually not in your favor.
I’ve never once used a food delivery app. Heck, I don’t even get pizza delivered unless I’m hosting a party and can’t go get it myself. The price increases, delivery fees, and tips are a big percentage on top of already rising food prices. I’d rather go eat out instead. Or just cook from home, which is healthier and cheaper. 🤷🏼♂️
Great video. I work as Shift Manager in a fast food restaurant but not US, in Poland. While I don't know the exact numbers in my country I talked a few times with my higher-ups, every time I heard that having delivery is barely worth any money for us since they (delivery apps) charge a lot of. And givent the fact that just COS (Cost of Sales - the cost of all the ingredients of a given product,) for a burger is around 35%, charging additional 20-30% is massive. And as you said running the restaurant is really expensive and rarely super profitable, not only you pay for all the ingedients but you also cover cost of labour, all the bills, rent, not to mention every time something gets broken it costs arm and a leg to get repaired (sometimes repair services charge the equivalent of 100 dollars JUST for arrival, even if they can't fix it). At this point I'm convinced the only reason every restaurant and fast food is on these delivery apps is for the sake of consumer recognition and having bigger "sale numbers" in Excel since it does not generate any meaningfull income for the restaurant.
Also, one more thing about scamming the restaurants - when we sing a deal with delivery app they take for themselves all the complaint and refund management. Basically, if anything is not right with the order, EVEN if it's the restaurants fault - the only official way for a customer is to file a complaint with the delivery app. But they made the process so convoluted and in some cases almost completely inaccessible that all of the blame falls on the restaurant. I get at least 1 call a day from an unsatisfied customer and only thing I am able to do is apologize and direct them to the delivery app customer service. And as a bonus I get to listen how shit I am and that I simply don't want to help them and it's all my fault and they (the customers) want to have their case resolved now, by phone, not by some shitty Uber customer service (which is reasonable, if I was in their position I would expect the same, quick refund and have it off my mind). So having the delivery in your restaurant comes with inherrent risk of having customer backlash in the "opinions and rating" section where all can write how shit you are because they waited 1 hour for food that none driver came to collect and deliver, it was cold and so on. And you sit there, shouting at a screet "It's not even my f**king fault, I do not hire these drivers, delivery app is"...
Really quite a difficult situation
Yeah, you're right. I feel bad for restaurants. They really have no choice. I stopped using the apps when I heard how they were screwing restaurants and with the rise in prices. None of it really makes any sense when you stop to think about it.
You forgot about the Ghost kitchens like Denys “the meltdown” or Chuck E Cheese’s “pachually pizza”. They take additional business away from smaller restaurants. I almost ordered a moon over my mihami from the meltdown lol
Those ghost kitchens just clutter the apps without much uniqueness. It also triples the work in the kitchen.
Thanks for making this video! In India, this became a big issue for the country's Restaurant Owners Association that they are appealing people to call the restaurants directly rather than ordering over food delivery apps. A tiny minority of restaurants who are popular in their locality have also ditched listing on the apps as well. Lastly, Domino's Pizza here still retains the delivery model you were referring to even if the order was made over a third party app
I don't understand this obsession that americans have with retirement. Like "if you never hang out with friends you would get X more amount of money in retirement", "if you would never buy dessert you would get X money for retirement" etc.
I mean what's the point of being alive at that point? Just go to a monastery do nothing and you'll save a lot of money.😂
I understand retirement is important, but I mean it's just one part of your life, why make it the center of everything. It's not even guaranteed. I order delivery simply because it's part of the pleasures of life, I don't think it's a scam in itself, it's just like spending money on movies or a theme park.
As far as I know most Americans don't have any government retirement programs so they have to save money for retirement themselves otherwise they'll never be able to afford to retire.
I was using food delivery apps once a week(for my roommate and i) , but 2 weeks ago i was comparing the price of our meal at the actual restaurant vs the delivery cost and i was freakin shook . The difference was enough for us to add basically an entire extra meal for 1 on to our order (there are 2 of us) . It was basically then that i decided to stop using these apps altogether , we live stupid close to a bunch of food places anyway !
You have to pay to drive to the restaurant
7:43 As someone who is familiar with self-employment taxes I was sitting here like "That's the number before taxes! TALK ABOUT THE TAXES! TELL ALL THESE PEOPLE THE FRESH AND JUICY HELL THAT IS SELF-EMPLOYMENT TAXES!"
I very rarely use delivery. I prefer to go pick it up. It doesn’t take long, saves me money, and the small inconvenience isn’t too bad it encourages me to cook instead.
Wow. Glad I cook. Thanks for this eye-opening exploration!
I'm unable to order food online.
The meals I prepare in person are so tasty and delightful that I walk to the kitchen at the first sign of hunger.
If the delivery food only had some taste or made you feel better after eating, that would be a dream.
But no - it tastes like oily salted paper, so I eat my pizza or my parmigiana tonight.
Thank you Harry for the video - not everyone is at risk tho...
Greetings,
What cook book you use 🤔
I'm 30 and from Czechia. By the time I reach retirement age, retirement won't exist anymore. They'll work us until death. And the sooner that happens, the better. So what's the point of constantly trying to save up on everything? Just live and enjoy your life while it lasts.
Literal Boomer mindset right here
Half glass full haha
@@LogicallyAnsweredlol😂😂😂😂😂
@@PeruvianPotato Maybe, but it's true. Our economy is getting worse every year, cost of living and renting is too high for most young people to be able to live on their own, owning a place or house is just a nice dream to have and it's going to get much worse. Our government is planning to take pensions away from people and raise the retirement age. If on top of all that + being permanently stressed about work and future you're trying to save up on everything, that lowers your enjoyment of life even further and creates depression and anxiety.
I should add that I'm only able to live on my own in a tiny half empty rented apartment because I'm disabled and receive disability pension on top of my part time wage, which alone wouldn't even allow me to cover rent, electricity, internet and phone bills.
@@PeruvianPotato Boomers are the ones that ARE getting the retirement and were easily able to purchase houses.
Great video brother!! Thanks!!
Thank you as always Daniel!
I'm stuck in a hotel with a broken ankle. Food delivery is a life saver at the moment
I remember working for door dash and man oh man, that was before they let you keep all your tips. I remember working hours, waiting at stores for late orders and a full days of work was at most 90$ but that didn’t count for all the times I had to fill up my tank
You still don't *really* keep all of your tips. The more the customer pretips, the less doordash offers in pay. Doordash can't get someone to pick up an order for $2 if there's no pre-tip so they have to offer higher. But if someone tips five bucks doordash is adding only two. I recently delivered three orders for doordash. They paid me $7 total. The tips made up the rest of course.
People enjoy the small amount of power they have at their fingertips, knowing some unknown Nepalese student is going to risk their life driving an uninsured scooter in the rain to get you your tacos at 3am so you can stave off a hangover, does make the average idiot who doesn't understand disposable income briefly feel like a king. And yes, that is basically the entire business model in a nutshell.
Never used an app. Never paid for pizza delivery either. Always felt like poor value when I could get it myself in 5 mins.
Filipino delivery fee isnt that bad (around 1-2 dollars from where I am). It's the price markup on the foods that's massive
I was used to order food but since some time ago I began to go directly to eat to my local shopping mall since I found it more enjoyable. This whole situation seems to work "better" where I live, the prices increase for having the food for delivery isn't that much as the US as far as I know, and the apps here don't list any restaurants if they don't want to be there.
I still remember that time where I submitted a restaurant that is really close to my house hoping it to be included, but even if you do that it won't be listed if they don't want that. Also now we have the Uber One subscription which makes any order above 8.74 to have free delivery including service fees and whatnot.
This begs a question: why can't the restaurants themselves invest in creating their own delivery service like the pizza chains do? Is it because going against corporations like Uber Eats or Doordash would be too costly?
It’s often just not worth the upfront investment
When you look at it, its cheaper to get a 3rd party to do it since delivery people does not count as 'employees' within your own company and wouldn't need to spend more money on company benefits on them such as "holiday pay" or pensions.
Have a restaurant, did this exact thing and guess what people don't want an app for every restaurant they order from. It could be maybe 10 apps just for food, when instead you can just have uber eats. And also a giant pain in the ass to get apps on iOS too and on Android at the same time. A ton of work, for people to not download the APP
Getting a developer to create an app and site that can create a UI and manage all the api calls involved along with server and storage costs and the app store costs will cost six figures in one year
@@wasabiflavoredcocaineever hear calling orders
To be honest, if that restaurant doesn't deliver, we usually tell them that we'll pick up the food and have it to go, so this way we can eat it at home. We used to have Pizza delivery guys pick it up for us and bring it to our home. But, by the time the 2010s came around, we noticed many of them would often have pizza cold or room temperature, which was something my mom hated. So from 2015 onward, we would just tell the places that we'll pay and pick it up at their restaurant instead of having those people deliver it for us.
Also, I hate tipping. it's like giving the employee more money than the food itself when the managers should be the one to pay the employees more money for the amount of work they do for serving and cooking food. So I rather pay them what the actual price is rather than tipping. I'm glad some countries like south korea and japan made tipping illegal because I get their viewpoint of not paying their employees very well or end up getting more money than the business itself.
Considering how everything is pretty much a scam these days. I don't own a vehicle, I figure since I don't have to pay for gas, insurance and upkeep why not order food sometimes and the apps are easy. I figure eventually they'll fall out of favour so might as well use them. It's not like i use them every damn day but once or twice every month is not that bad.
I always viewed food delivery apps as scams, but DAMN that part with the S&P is pretty eye opening.
I have never used food delivery apps and never will. I'll just go get it myself if I want it that badly. If I don't want to go out then I'll eat what I have at home, not pay a stupidly high markup in the hopes that maybe someone will actually deliver something.
Nice video comrade. That these companies were ever able to even exist shows what a sick environment non-existent interest rates have created.
I don't know how it is now but it was awesome when I was in college. I could pull in $200-$400 a day and have the money in my bank account instantly after each delivery. I made $80,000 one year and didn't have to pay a single dollar in taxes and got free healthcare through the affordable care act. Maybe it's gotten worse since a few years ago but probably not by too much. The trick to making bank with these apps is to run multiple accounts with multiple different apps at the same time and strategically reject low tip offers and to put your expenses super high for taxes like the startup up cost of your business (value of car, rent for "home office"/bedroom to plan out delivery routes, business lunch meetings with potential doordash customers etc)
Saying food deliver benefits no one is not logical, not an answer.
I only used DoorDash once or twice when I used to work in retail, because my friends did it for fun. I was curious to try food from a restaurant I never ate from before, so I figured why not? But every time I saw the price my jaw dropped... I was just working for barely above minimum wage, and so I decided I wasn't going to order food delivery anymore. It's so convenient for people especially in Gen Z (because we are becoming so lazy and/or don't like to leave our homes, etc.), that I can see it becoming a habit hard to break.
On a side note, Gen Z has issues with spending money all the time (especially for expensive items), which is so shameful especially as inflation continues and we will keep generating waste on our planet. I have learned to stop spending as much money to an extent, but once in a while I buy something nice for myself I know I will use.
It's used alot by travelers. Getting off a flight and in your hotel room last thing you want to do is go out again looking for food.
Great research! ✅
I enjoy working as a delivery person and was only a consumer once. I think there are many flaws in these delivery apps, yet with the right guidance for delivery drivers, it can be useful for someone else's busy life. Also, I have a delivery blueprint coming soon. 😀
In S.A, a full uncooked chicken costs R100. Food delivery of a quater chicken is R120. In hort I cook my food
Thanks for raising awareness on the inflated menu prices on the delivery apps compared to the restaurants website. I wish there was a food delivery app that didn't play shell games with everyone. Don't charge the restaurants anything and don't inflate the menu prices. Just show what the delivery fee is up front. The customer should pay the full cost. If restaurants didn't pay anything for orders then there would be more variety on the apps.
It was wrong to exclude gas, depreciation and repair expenses which should come to about 1/3 of top line numbers on average. In reality, food delivery job is actually much worse than minimum wage job. And that makes sense. It requires even less skills than minimum wage jobs.
This sounds like a well-researched video. If I had to nitpick, may be consider some people are not able to cook for themselves or pick up food due to disability 😕😕😕
after all is said and done...Everyone gets scammed including themselves🤣
Yep haha
@@LogicallyAnswered Madness!
As someone who lives in the boonies I would 1. Not trust the locals w/ anything let alone my food and 2. Just make my own food.
I don't use any of the delivery apps or even the online pickup from grocery stores. I go to the store like a normal person.
If there was a monopoly, it'd definitely be profitable... the reason it is not as profitable is because there are a lot of companies... i'd like to think it's like streaming services
“Paid time off, sick days, or other “perks” “ what a weird sentences as a European, it still baffles me that such things exist in such a rich country 😂😢
I never used a food delivery service in my life. And I intend to stay it that way.
I quit using food delivery services when they sent me an email with a very large number in it, bragging to me about how much I "saved" and "took advantage of their specials". They should probably not send those out to people if they have "saved" over $1000.
Beautiful analysis! Perfectly explained! The same is the case in India too! Keep up this great work!
I love these services. I don't use them often as I like cooking alot(it's fun) but the VC money that allows for these unrealistic, nonsensically cheap specials and deals is incredibly convenient especially when they align with periods where I have no time/ingredients at all to prepare anything. I just bought a pizza today that came with another, identical full sized pizza for free AND had free delivery and I have been to the actual store and the pizzas are like, 15-20% more expensive on the app meaning I saved like 70-75% on my order compared to buying physically. They are letting me rob them from the comfort of my home and couldn't be more happy to oblige. They are great(for the consumer) when you ONLY use them when they have stacked specials you can capitalise on.
That’s exactly how they lure you in 😊
@@bestariel._.yuh029 And thats when you exercise discipline and only use the services when they offer VC subsidised specials. It's like credit card rewards and the like, if you are disciplined and can show restraint, you can make great savings on them. Those who cannot do this are not your concern and you should thank them, their lack of impulse control keeps businesses like this going so you can exploit them longer/further.
i only used a delivery app once, and that was because there was a really good offer that made the price almost worth it :)
I’ve always found the food delivery business very interesting. No idea how there can be so many actors on the market and still be profitable. The working conditions are bad, the wage is bad and it’s expensive for the consumer. I think it’s only a matter of time before the industry starts to fail
I order food ones in a while, but always from the restaurant itself. I have never used one of these apps and have no intention to do so in the future.
that is a a very very very cool video, subject logically answered and elaborated. Thank you sir.
I'm glad that I haven't used any of these apps at all. I always pick up my food by myself.
In Germany, many restaurants want to have their own ordering website or even just a phone number and have the customers benefit from cheaper prices since they don't have to pay commissions, but the big apps make deals that forbid them from offering their food at a better price elsewhere.
Dang I had no clue the statistics were that high on how much people use these food delivery service. I'm a millennial and I have never even used the services. $13 in fees and surcharges???? I try to keep my whole meals to $10 or less when I eat out. lol
Growing up my family never used food delivery apps even now. If we wanted food or a specific food we'd physically go to it's nearest store even if it's literally across the city. It's a habit we've always had and my family dislikes the idea someone could tamper with the food without looking. I've always wanted to try food delivery for its convenience but the idea of its delivery fee scares me.
If this is true that food delivery does this then it's not gonna be alot of people using food delivery anymore and great video man :]
Glad I wasn’t the only one who noticed the increased prices on apps vs restaurant. But I don’t really like using apps personally because the delivery fee and tip make it not worth it most of the time.
Food delivery does benefit some people, but restaurant delivery generally does not. There are people, like me, who are disabled and who don't have a car. I can't afford one. Delivery from a grocery store is very helpful because before that existed I had to either get a taxi or arrange with someone to get a ride to and from the store. There is no public transportation where I live. So you need to be more specific in your terms. I usually get deliveries from Walmart and try to just get one delivery a month of everything I need.
Never used any of these apps and I never will, I'm from the early 80s I'm not lazy I just get my ass up and go fucking get it
I love the people that drive for these companies and think they are getting ahead when really they are falling behind
Not everyone lives in a Downtown where a bunch of food option is available or not everyone owns a Car to go pick food up by themselves. Also, sometimes you just don't wanna change and get out of your place.
I will say as someone who is doing this on top of a full time job it's a great way to make up for overtime pay im no longer getting but it's absolutely a raw deal as a main job.
100% correct. The drivers, restaurant, customer all get screwed AND the apps operate at a loss. The ultimate losers are the investors.
That’s why my butter chicken 🍗 taste’s shit 😂
Jokes aside, food delivery service even for me a bad deal since it feels like a bad habit for some reason it a literally a black hole in the wallet heck delivers has the worst part of this segment dealing with karen customers, unfixed earnings and health problems. So not a good deal for those Taco Bells
Amazing video ❤
By the way, love your new editing style 👍
Yes, truly a wallet drain haha
@@LogicallyAnswered straight to the drain
I've done food delivery once and it cost me over $80, total cost. I prefer to make my own food or if I'm peckish for something in particular, I'll order ahead and leave a digital tip and pick it up myself. Save myself extra on fees and delivery. No point in spending nearly my grocery budget on food delivery
We use them about a few times or more a month, and seeing this scares me how unsatanable it is, bloody nuts great video!
Loving the new editing quality
Really appreciate the positive feedback man!
Your videos are amazing! I'm hooked. You switch from Canadian oil to GrubHub and provide an great amount of real world information.
As a driver myself, the tax side of things is HUGELY more favourable here in Australia and health insurance is both unnecessary and much less expensive. Retirement saving (or what we call superannuation) is also partially matched dollar-for-dollar by the government, so it’s still an issue, but less so. The amount of tax breaks we get is pretty crazy too, so it means I pay a pretty insignificant amount of tax. Is it the ideal job from a security and career perspective? No. But as someone dealing with major health issues that keep me from working a more conventional job at the moment, it’s exactly what I need just now.
It's always cheaper to pick up rather than taking delivery apps' service to bring up as they are gonna be cutting a profit on fuel charges. And yes the organisation of this whole operation was barely viable for delivery apps. I never even once order a meal since all these apps have launched. Just installed the apps to get the idea of prices thats it.
I am blown away by the 86% statistic. I have never used a food app. I only know of one friend who does. I'm located really close to restaurants at work in the city, but live in a small town, and we onky have 2 chain places, and i doubt anyone here delivers via an app service. Town of 3000, so I'd pick up, but mostly if I'm going to eat out, I'm going out to eat. Sit in the restaurant, enjoy chit chatting with friends, or family. We make an event of going out. Wild, 86%.
I spend about $150 a week on doordash a week, but to be fair I make about $400 a day
I only order out food like a few times a year at this point (usually when I am sick and somehow have the extra cash). The fees alone make it not worth it and I often find that it's usually cheaper to use the restaurant's website to order pickup. The services often screwed up my orders in the past as well so it's less of a headache when I get my own food.
Grub hub now has a pick up feature, imagine that 😂
I refuse to order this way, most of the drivers I see are rude, sketchy aholes & I wouldn't want them touching my stuff. 😖