Guide to third-party delivery services. Learn how restaurants can improve delivery efficiency.
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More people are choosing delivery over dining out. Third-party services like DoorDash and Uber Eats have made it easier for customers to enjoy restaurant meals at home, changing how restaurants operate and how they earn.
These platforms expand reach but carry steep costs. Owners must know the real price of third-party delivery. This guide breaks down fees, uncovers hidden charges, and shows cost-savvy options like Peppr to streamline operations and boost profits.
Third-party delivery services like DoorDash, Uber Eats, and Grubhub connect restaurants with customers for delivery and pickup. These platforms handle logistics from order placement to delivery, allowing restaurants to focus on food preparation without managing a delivery fleet or an online ordering system.
When a customer places an order, the third-party app sends it to the restaurant’s system. After preparation, a driver picks up the food and delivers it to the customer. The platform processes payments and sends weekly payouts. But reach comes with costs: per-order commissions, delivery and processing fees, and occasional surge fees, all of which add up and squeeze margins.
Restaurants partnering with DoorDash or Uber Eats incur costs, including commission fees, delivery charges, payment processing, and additional fees such as surge pricing. Here’s a breakdown of these fees.
DoorDash: Commission fees for DoorDash Marketplace delivery orders range from 15% (Basic) to 30% (Premier), including payment processing. The Pickup Fee is 6% across all Marketplace plans. Additional costs may include optional marketing fees and a $6/week tablet rental. DoorDash Online Ordering has 0% commission but a 2.9% + $0.30 payment processing fee.
Uber Eats: Commission fees for Uber Eats Marketplace range from 15% (Lite) to 30% (Premium), including payment processing. The Pickup Fee is 6%. Higher-tier plans offer Uber One benefits, Ad Spending Match (up to $100/mo in Premium), and a Growth Guarantee. Self-Delivery charges a 15% commission and a 6% pickup fee, with the option to use Uber drivers at a 25% fee. Uber Webshop has 0% commission but charges a 2.5% + $0.29 fee. Uber Direct starts at a flat fee of $7.99 per delivery.
These fees can significantly impact profit margins. While these platforms increase reach, it's essential to track all costs and their effect on revenue. Using tools that can calculate commission fees and help assess delivery costs is vital for understanding how much third-party platforms truly take from each order.
In addition to commissions and delivery fees, hidden costs can impact profitability, making it vital to track and manage them effectively.
These combined expenses determine the financial impact of third-party partnerships and are essential for cost management in daily operations.
By tracking everything from commissions to delivery charges, Peppr empowers owners to make informed decisions and protect their online reputation with reliable service and timely responses. Learn how to strengthen your restaurant’s reputation with our full guide on restaurant online reputation management.
Third-party delivery platforms like DoorDash and Uber Eats charge high commissions (15%-30%), turning sales into financial strain. While they drive traffic, they can lead to significant losses. For example, Delilah's Steaks saw GrubHub fees triple their rent, and Carrie Roeger of Semper Fi Bar & Grille found high commissions wiped out their margins, making delivery unprofitable.
Beyond commissions, hidden costs like food waste from no-shows and time spent auditing billing errors add to the burden. Gold, owner of Pizza Shuttle, estimates losing $50 of food nightly due to DoorDash drivers not showing up.
The lack of pricing transparency means restaurants lose control over customer data. Peppr’s transparent pricing eliminates surprise fees, allowing restaurants to reduce operational costs, evaluate delivery efficiency, and preserve profit margins. By switching to a predictable fee structure, restaurants ensure volume leads to profit instead of losses.
Despite the costs, there are ways for restaurant owners to maximize their profitability when using third-party delivery services. Here are some strategies:
Integrating Peppr’s POS system lets you track orders in real-time and streamline delivery operations. Peppr’s integration tools allow restaurants to track delivery performance, manage third-party orders efficiently, and minimize delivery-related expenses. Modernizing workflows multiplies these gains.
See our guide to restaurant digital transformation for practical next steps.
Integrating DoorDash and Uber Eats with Peppr’s POS system streamlines operations by automating order flow, reducing errors, and saving time. This integration ensures accurate orders, real-time updates, and faster service for both staff and customers.
Here’s a cost comparison for Peppr and other POS systems:
Peppr stands out with its clear pricing, ensuring restaurant owners avoid surprise fees and gain peace of mind. Our POS system allows restaurants to track delivery costs and manage integrations without worrying about hidden fees or unexpected charges.
With Peppr, you can be sure that you’re not paying more than necessary for delivery services. Our system provides insights into profit margins and allows restaurants to track delivery performance with ease. Clear pricing allows restaurant owners to make decisions that improve profitability.
The best choice depends on reliability, fees, and POS integration. DoorDash often has lower commissions and a broad reach; Uber Eats shines in support and speed. Both work with Peppr. Consider local services for lower costs and a personal touch.
Yes. Pick flat-rate pricing, audit contracts for add-ons (e.g., marketing), and use Peppr to monitor charges.
Third-party delivery platforms help restaurants expand their reach and boost sales, but understanding the associated fees is crucial, but it’s essential to be aware of the delivery charges and fees involved.