OnDemand WTP Pricing Research

Fast food is coming to your doorstep, but it can cost more | StarTribune.com


Many apps charge delivery fees, and the amount can differ widely depending on the city you live and app you’re using. Online ordering apps charged fees ranging from $1 to as much as $11, according to a report last month from analysts at investment bank Mizuho. Typically, the app will tell you what the fee amount is before paying.

Another thing to look out for: surge pricing. Uber Eats, which delivers for McDonald’s, and Postmates, which has partnered with burrito chain Chipotle, charge more during busy ordering times. Both companies notify users that they will be charged more for delivery before they pay. And both companies say they need surge pricing in order to give delivery people more incentive to deliver for them when more customers are placing orders.


Some apps may charge more for menu items than they cost if you walked into the restaurant. Uber Eats, Postmates and DoorDash all say the prices on their apps may vary from what is charged in-store. You can find out if the app you are using does the same by looking at its frequently asked questions section in the app or website, or in the “help” section.

Grubhub, which recently announced a deal to increase delivery at KFC and Taco Bell, says its prices are the same as those inside restaurants.

Read complete article here:

Fast food is coming to your doorstep, but it can cost more – StarTribune.com.