Column: Our restaurants are failing. Why should food delivery apps thrive?
LA TimesIt was the invoice from hell. “You have to go along with it because everyone else is doing it, and you don’t want to inflate your prices,” said Giamela, who pays Uber Eats a 22% commission. Apps like Uber Eats will offer to let restaurants make up fees by increasing their prices, he said, “but you don’t do it because customers won’t come if you’re two or three dollars more than your competition.” “It eats away at the bottom line,” he said. “There was a time we would do $10,000 a week in Postmates and $10,000 a week with Uber,” he said, but he didn’t like Uber’s 30% fee structure. If they cut their rates 5%, maybe that could help us break even.” In an emailed statement, an Uber representative said that regulating fees “could ultimately hurt those that we’re trying to help the most: customers, small businesses and delivery people.” A Grubhub spokesman echoed that sentiment, saying, “This is exactly the wrong proposal.