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No_Afternoon6743 t1_jacuncr wrote

Tipping delivery drivers is the only way they make a decent income. If you're ordering food, make sure to leave a good tip. Each company has its own model and are subject to local, provincial/regional, and federal laws, but by-and-large the breakdown is (numbers based on my local figures):

A service fee goes to the company. E.g., 1$ (Skip) to 10% of the order (UberEats). This does not pay much to the company, and exists mostly so that you think that they are only making a couple dollars per order.

A delivery fee goes to the driver. This is calculated vastly differently on different services. It's usually either distance-based or a flat fee. This is not meant to pay a living wage; if drivers were only paid this fee, they would actually lose money per order from gas and car degradation. This fee usually works out to 1-3$.

The order fee is where the delivery service makes most of their money. They charge usually 20-35% of the order fee as a commission from the restaurant. This is predatory as hell, but it keeps profits up and costs low for consumers. (Except that now restaurants are raising their prices so that they can make normal profits again, so the cost is invisibly passed on to consumers.) This is where the profits come from.

Finally, the tip. The tip is where the driver makes the vast majority of their money. On the standard tip on the standard order (15-18% on a 25-30$ order) this works out to around 4.5-5.5$.

So, on a 30$ order, a restaurant will make 23$, the company will make 8.5-10.5$, the driver will make 6-7.5$ from fee+tip before expenses, and the total amount cost to consumer is 43-44$.

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All that to say: In tip-based countries, you need to tip your delivery drivers or they are getting totally screwed over (instead of just a bit screwed over).

The alternative would be to pay drivers a fair fee. But companies don't want to do that because: 1) they're afraid that will make drivers look like employees and that would cut deeply into their profits, 2) consumers don't like seeing big numbers on the order.

I'm currently working on developing an alternative for my local community which would be organized as a driver-owned co-operative and would pay a flat fee and charge restaurants less. But the only reason this has a change to work is that we can operate with little-to-no profit and we're still going to need to charge more than our competitors.

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