Daily Newsletter

12 December 2023

Daily Newsletter

12 December 2023

DoorDash and Uber Eats to cease pre-delivery tip requests

Delivery services currently face difficulties including delivery fees and minimum pay regulations.

Upasana Mukherjee December 11 2023

Food delivery platforms DoorDash and Uber Eats have revealed plans to stop pre-delivery tip requests, reported WSYX ABC 6.

The platforms plan to delay tip prompts until deliveries are successfully fulfilled, removing the necessity for customers to offer tips for quicker service.

Delivery businesses currently face difficulties due to issues such as minimum wage requirements and delivery fees, which can affect tips.

In early December 2023, Uber Eats and DoorDash discontinued the tip-requesting prompt during the checkout process for customers in New York City, US.

An Uber Eats spokesperson told Business Insider that the platforms have added a new fee - an additional cost to pay couriers.

DoorDash and Uber Eats in the city are currently receiving $29.93 per "active" hour for each delivery.

Founded in 2013, DoorDash offers its services to businesses across more than 26 countries worldwide.

The Uber Eats app was launched in 2015, and offers services ranging from day-to-day essentials deliveries to dishes from restaurants.

In September 2023, food delivery platforms Uber Eats, Deliveroo and Just Eat signed a charter with the UK's Transport for London authority.

The charter aims to make motorcycle couriers and other road users safer in the English capital city.

Earlier in the same month, Uber Eats added chef Gordon Ramsay’s restaurants in London to its app.

Western Europe foodservice market dynamics

The total revenue of the Western European foodservice profit sector totaled $685.3 billion in 2022, having declined at a negative CAGR of 2.4% during 2017–22. In 2022, FSR was the largest foodservice channel, with a value share of 25.9%, followed by QSR. However, the region’s foodservice sector is poised to bounce back as it is forecasted to register a CAGR of 8.1% by 2027.

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