Special Report, News, Americas

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The delivery apps make money by charging restaurants a commission for each order placed through the app. The standard commission is 30 percent (though DoorDash also has introduced a tiered commission structure). The apps also charge a smaller service fee to the customer. According to an analysis by Deutsche Bank, the average DoorDash order was worth $36 during the pandemic. If DoorDash pocketed 30 percent, the company earned $10.80 plus another $2 or so for the service fee. That might sound like a lot per order - especially when it's multiplied by hundreds of millions of orders - but that $12.80 is gross revenue. You still have to subtract the costs of doing business. The biggest expense for apps like DoorDash. Uber Eats is paying the drivers. Next are advertising and marketing costs, including those "Free $25" promotional campaigns to attract new customers. And then there are returns and refunds, which really eat into the bottom line. When all those costs are taken into account, Deutsche Bank calculated that DoorDash was left with net earnings of 2.5 percent of the customer's overall bill or 90 cents for every $36 order.




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