The Surprising Popularity of Delivery Apps: Understanding the Costs

[3Bz_Mexican]

Hey everyone,

I've been quite amazed at the continued popularity of delivery apps since the onset of the Covid pandemic. It seems like more and more people are relying on these platforms for their meals. However, something interesting caught my attention when I recently dined in at a restaurant.

Several individuals who joined me for a meal remarked on the price disparity between ordering through a delivery app versus dining in. They noticed that the same food item cost more when ordered through the app. This got me thinking about the underlying reasons behind this difference.

Unlike e-commerce platforms like Lazada or Shopee, which usually apply a fixed delivery charge to each item, the food delivery apps (such as Lineman, Foodpanda, and Grab) employ a different pricing model. They charge a significant percentage based on the total value of your order.

Now, let's reflect on this for a moment. Isn't it reasonable to expect that a premium is associated with the convenience of having your food delivered? After all, delivery services involve additional expenses, including labor, transportation, and operational costs. These services employ drivers, maintain fleets of vehicles, and run systems to ensure timely delivery, all of which require financial resources.

While it's true that the prices might be slightly higher through these apps compared to dining in, it's crucial to recognize that we're essentially paying for the convenience and added value they offer. The ability to order from a wide range of restaurants, track our deliveries, and enjoy our meals in the comfort of our homes or offices is undoubtedly appealing.

In conclusion, it's understandable that delivery apps charge a premium for their services. As consumers, we have the choice to evaluate whether the convenience justifies the slightly higher costs. Ultimately, it's a personal decision based on individual preferences and circumstances.

So, the next time you decide to order food through a delivery app, consider the convenience it brings and weigh it against the costs involved. Happy ordering, everyone!

Note: The information presented here is based on my observations and should not be considered as an endorsement or criticism of any specific delivery app.

I'm really curious to know how others think and feel about this.

[Buddy Edgewood]

I own a restaurant in Bangkok and while we have a presence on all the delivery apps, I don't really like using them. The reason being is because of all the fees charged to the restaurant.  Most of the delivery service apps charge restaurants upwards of 32%, plus extra if we want our shop to show up in simple searches.  If we don't pay for placement advertising in the app, the delivery app buries our restaurant so deep, it's difficult for customers to find our shop in the app.  However, even if we pay for advertising, the cost of the placement advertising kills our profit margin, unless we triple the price of our food in the apps, which no doubt scares away many customers. Because of the high prices in the apps, many customers might believe we're some kind of HI-SO shop, but in reality, if they actually came to our shop, they'd find that the price of our food is extremely reasonable.

It's all highly frustrating, not only for us owners, but also for our customers. 😖

[3Bz_Mexican]

Absolutely, it's a very frustrating catch 22, I'm glad to hear from another owner on this issue! Thanks for the feedback

[Bruce Mangosteen]

I lived in Pattaya when the first of these delivery services started, and heard this same thing back then. 

An alternative is to have your own delivery drivers.  A friend of mine who owned a Chinese restaurant in Pattaya on Soi Buakhao near where Treetown is now told me the horror stories associated with that:  Customers not present to take deliveries, refusing deliveries, trying to send food back if they didn't like the looks of it, drivers disappearing during shifts, getting in accidents/fights during deliveries, customers balking at the premium, customers wanting delivery of one egg roll to Ban Chang, etc. etc. etc.

As always, TANSTAAFL.  Ya pays ya money, and ya takes ya chances.  {Insert other "buyer beware"-type cliches here.}

[Thomaz73]

Agreed! It should be clear what the restaurant and the app charges. In my country it certainly would. Potentially a customer might be reluctant to visit your place based on what is shown in the app. Can't expect everyone to understand the deeper aspects of this.