You¡¯ve probably noticed that your food delivery receipts are getting much longer.
Extra charges for small orders, the driver¡¯s fuel or delivery in a busy area, when combined with a tip (you should always tip!), can quickly turn your $6 coffee and bagel into a $14 order.
It¡¯s frustrating for sure, but also an annoyance consumers can¡¯t dodge in a delivery industry that has rapidly consolidated. The question is how long customers will take excessively high fees before ditching the apps. A run through this month¡¯s earnings updates from industry leader DoorDash and next-in-line Uber Eats, part of Uber Technologies, shows the answer is not anytime soon. DoorDash beat Wall Street¡¯s expectations for orders placed and value of orders, and Uber Chief Executive Officer Dara Khosrowshahi assured investors that elevated inflation was not impacting consumer spending. ¡°They¡¯re spending their money on experiences and food is a part of that,¡± he said.
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