Right from restaurants to dine-ins, everywhere is flocked with food delivery apps in record numbers. The pandemic has forced all of us to stay indoors while the food establishments closed the dining section. With this, dozens of food delivery options have cropped up and have become a go-to option for people wanting restaurant food from the comfort of their homes. The food delivery sector has spiked up to $365 billion by the end of 2020, thanks to the self-isolating consumers all across the globe.
And even when the lockdown has relaxed, we are too lazy to go out. And this brings us to an important aspect and we have to pay more than what we should while ordering food from regular food deliver apps like UberEats, GrubHub or DoorDash. Let’s delve deeper into understanding why is DoorDash so expensive?
Reasons Why Doordash Is So Expensive?
Are you wondering why food delivery apps have become so expensive in this digital era? Across a number of markets, the price of food delivery at home has surged up. Moreover, the price charged by these apps is mostly dependent on food prices, indicating a higher bill overall. Here are a few reasons that seem to justify it.
More Profitable Pickup Service
Most eateries and restaurants are looking for more profitable pickup orders which, in turn, is raising the prices of the delivery menu with apps. This April, it amounted to around 17 percent higher compared to store-bought food and in some cases, it even surges to 20 percent for improving margins.
This is also because restaurants believe that the customers looking for such conveniences will be ready to pay and this is one of the major reasons why is DoorDash so expensive.
Packaging Costs and Hiring People
The surplus pricing is applicable to all food delivery apps including DoorDash and to find an answer to your ‘why’, you need to understand the �how’. In the first place, DoorDash has to allocate more staff to accommodate the rising demand. The restaurants have to bear with the cost which they didn’t have to do before. In the pre-corona era, most people used to eat the food at the restaurants than ordering online.
And the packaging costs are also more since your food needs to be protected till it’s being delivered to you. If you were eating at the restaurants, they would just require reusable or disposable serving plates. DoorDash has to pay for the extra packaging cost as well.
Costs of the Vehicle and the Driver
These food delivery apps have employees who keep their app running and this is not only true in case of DoorDash but for other apps as well. It’s better to say that they are not really employed by these companies. Rather they are subcontracted for giving the service.
DoorDash pays each driver an amount that they can either accept or reject for delivering the food. Plus, there is a cost of the vehicle being used along with its fuel and depreciation cost. And if they change location or if the driver has to cover extra miles, then they also charge extra tips to make the delivery worth their effort.
Stiff Competition Amongst Delivery Personnel
It’s not just the food delivery apps competing to offer you the desired service, the rivalry is also among the delivery boys for procuring an order worth a hefty tip. On the flip side, when apps like DoorDash don’t charge you the extra money, you can hardly get anyone to accept and deliver your order.
Imagine a situation where you have placed an order without any added tip through DoorDash. Now, the app will be bidding drivers to deliver the food at your chosen location. Drivers can well check whether or not you have added a tip. And many will decline your delivery request since you have not added any extra tip.
Keep in mind that the restaurant has prepared and got your food ready and now it’s waiting for someone for being picked up. Time passes and your food gets cold on the counter. When no drivers accept the delivery, the app will only apologize for not being able to order it to you.
So they will refund you the amount and you will still be hungry after 2 hours. To reduce the chances of such incidents from occurring, DoorDash charge quite a hefty price but you can rest assured that the food will reach you within the stipulated time.
Does DoorDash Have Hidden Fees?
When you are thinking about why is DoorDash so expensive, you should know that they charge a delivery fee that ranges between 5.99 and 8 dollars depending on how much the delivery person has to travel for delivering the food. You can check the fees before checking out with a detailed breakdown of the fees, gratuity, and eligible taxes.
The total costs that you are supposed to pay contain the price of the food you have ordered, the levied tax, a tipping amount which is of course, optional, delivery charge s along with a service charge that’s decided by the restaurant you select.
According to DoorDash, they also add some additional amount for the order amount that sums up under the minimum subtotal or when there is surged demand for the particular restaurant or location.
How Much Does DoorDash Cost For Restaurants?
DoorDash has announced new price plans for eateries and restaurants using their platforms this April. Before this time, this renowned food delivery app never offered standardized pricing across restaurants.
But the question of how it is going to be exerted has prompted the company to share a long post on its fee structure. But it’s worth mentioning that they’re now charging only 6 percent commission for pickup and delivery orders.
And the commissions are now much reduced and curtailed to 15 percent. It’s obvious that restaurants can now increase their sales with an expansive delivery zone and enjoy the growth of their business with DoorDash.
How To Save Money On DoorDash?
DoorDash is really a great app if you want any meal served at your home or any location. Thankfully, it’s much affordable as you can utilize the DoorDash coupons to save money on your food orders. When you download the app for the first time and have someone to share your food with, you can get two months of free delivery in place of one.
There are many sites offering cashback and added discounts while placing orders through DoorDash. You may also purchase digital DoorDash Gift Cards and save 5 percent extra. If you have a Chase Visa card, you are liable to receive a free subscription between 3 months and 1 year based on the card type. Lastly, you should keep your eye on the social media pages of DoorDash to find out about the discounts and deals.
Frequently Asked Questions:
Is DoorDash More Expensive Than UberEats?
For both UberEats and DoorDash, the closeness of the restaurants along with the availability of the service personnel will impact the costing.
This means, if you are ordering from a place that’s far from the chosen location of delivery or during the surge hours, the delivery fee is going to be much higher than normal. Both the apps have similar base delivery fees.
But there is an extra advantage with UberEats. It lets you receive free delivery when you share a delivery driver with other people ordering from the same restaurant. But with DoorDash, this fee is typically around 10 percent of the order subtotal based on the location you are ordering from.
With UberEats, you will have to pay around 15 percent of the subtotal amount. Even though there is more scope for saving with UberEats, DoorDash is more affordable for standard delivery.
Which Is Cheaper, DoorDash or GrubHub?
GrubHub is definitely a cheaper alternative to DoorDash since you will only have to pay the amount determined by the restaurant. GrubHub will not charge you any amount for the order made.
On the other hand, you are liable to pay a handsome delivery fee to the service provider along with a service charge to the restaurant with DoorDash.
At present, DoorDash is only offering contactless delivery which indicates that you cannot get cash on delivery option with DoorDash now.
Is There a Minimum Order for DoorDash?
For making the order worth the restaurant you have selected as well as the time of the courier personnel, DoorDash has set up a minimum order total in every market which ranges between 8 and 10 dollars.
But if you cannot cross your local minimum, the app will charge you a fee of $2 as a small order fee.
The advantages proffered by the food delivery services need no introduction from the consumers’ perspective. They are not just fast but gives a lot of conveniences so that people can enjoy their meals from home or office without a fuss. And when they are offering so many things together, it’s obvious why is DoorDash so expensive.
About Dawson Kutch
Dawson Kutch is a born and raised Alaskan who loves the outdoors and everything it has to offer. Kutch has been an avid hunter and fisher his entire life, and takes great pride in providing for himself and his family. While he enjoys spending time in the great outdoors, Kutch also has a passion for fashion and loves to stay up-to-date on the latest trends. In his free time, Kutch enjoys spending time with his wife and one young daughter. He is always looking to learn more and better himself, both as a writer and as a person.