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Comment by bko

One thing I don't understand is how the rise of food delivery has gone up so much and is terrible for everyone.

For context, I used to deliver pizzas in a the early 2000s. I made

$4-5 an hour

+ $1 per delivery

+ tips (~$3 average)

My typical night made me about $20/hour (3-4 deliveries per hour). Someone would order $20 pizza, pay $4 for delivery fee and tip (16% markup). Restaurant paid $1.5 per delivery (amortized $5/h). Everyone was happy.

If you look at it today, the typical take home for delivery people is still $20 (same from 20 years ago, not inflation adjusted).

Here is what typical order looks like today:

Pizza cost: $20

Delivery fee: $3-5

Service fee (10-15%): $2-3

Optional tip (15-20%): $3-4

Possible small order fee: $0-2

Total customer cost: $28-34 (40-70% markup)

Restaurant commission (15-30%): $3-6

Restaurant makes less, customer pays a lot more.

And these companies managing this workforce still manage to lose money! So where the hell is the money going??

I wrote more about it here

https://mleverything.substack.com/p/what-happened-to-food-de...

parent bko 2 days ago

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