Wall Street Journal: Who’s Responsible for Higher Food Delivery Prices?

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A customer receiving a food delivery from a courier.
Image via iStock.
Higher food delivery prices are fueling an argument over who's responsible for the higher costs.

Magee Hospitality Group, owner of a chain of bars in Prospect Park, has found itself at odds with DoorDash over higher food delivery prices, writes Preetika Rana for The Wall Street Journal.

Food delivery services say some restaurants scare customers into not using the apps by raising prices on food they sell via the delivery apps.

Restaurant owners say they have to pass on app fees and the rising costs of food and labor to customers to make food delivery profitable.

Joe Magee, owner of Magee Hospitality Group, said he was notified by DoorDash that his delivery prices were 40 percent higher than food billed in his pubs.

DoorDash deactivated his locations after he disputed their delivery price claim. Magee has since stopped using DoorDash.

 “I basically fired them,” he said.

Restaurants have upped prices on platforms like DoorDash and Uber Eats as they face rising operations costs.

“In order to offer delivery, we have to increase our prices to break even,” said Juan Martinez, owner of Don Juan Mex Grill.

DoorDash encourages establishments to align delivery prices closely with in-store figures.

Get into the meat of the discussion over higher food delivery prices by reading the entire article in The Wall Street Journal.


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