In the age of convenience, food delivery apps like Uber Eats and Doordash have become a go-to for hungry customers. With just a few clicks on your phone, you can have your favorite meals delivered straight to your doorstep – no cooking or leaving the house required! However, this convenience comes at a cost that many are unaware of: the negative impact it has on black-owned restaurants. In this blog post, we will explore how these delivery services are hurting these businesses and what you can do to support them. Are you ready to learn more about the hidden cost of convenience? Let’s dive in!
Introduction to Uber Eats, Doordash and other delivery services
As recently as 2016, only 3 percent of Black-owned restaurants had formal relationships with third-party delivery services. However, by 2018, that number had jumped to 21 percent. Post-covid, those numbers have grown exponentially.
The increase in use of delivery apps can be attributed to the growing popularity of these convenience tools among consumers. What many diners don’t realize, however, is that using Uber Eats, Doordash and other delivery services comes at a hidden cost – one that is disproportionately borne by Black-owned businesses.
The fact is, local restaurants pay an extremely high commission — up to 30 percent — plus a marketing fee ranging from 4-10 percent of the total order. This is a lot of money to shell out when profits are already thin as it is.
The Impact of Delivery Services on Black-Owned Businesses
As the demand for food delivery services continue to grow, so does the negative impact it has on black-owned restaurants. Despite making up a large percentage of the industry, black-owned businesses are struggling to compete with the deep pockets and marketing power of companies like Uber Eats and Doordash.
On top of high fees that can eat into already slim margins, delivery apps often display restaurants in a way that benefits them, not the eater. For example, they may show popular restaurants first, or those that have paid to be featured prominently. This hurts small businesses who can’t afford to pay for promotions and are forced to rely on word-of-mouth marketing.
What’s more, these apps don’t always deliver what they promise. In many cases, diners have complained about long wait times, cold food, and incorrect orders. This reflects poorly on the restaurant, even if it’s not their fault. As a result, black-owned businesses are losing customers and struggling to survive.
There’s no easy solution to this problem, but supporting black-owned restaurants is important now more than ever. One way you can do this is by ordering directly from their website or calling them instead of using a delivery app. Every little bit helps!
The Cost Implication of Delivery Services on Independent Restaurants
As the popularity of delivery services like Uber Eats and Doordash continue to grow, so do the cost implications for independent restaurants, particularly those owned by black entrepreneurs.
While these services provide a convenient option for customers, they also take a significant cut of each order, which can eat into already slim profits. In addition, restaurant owners are responsible for paying all associated fees, including insurance, credit card processing, and driver tips.
This often leaves little room for error or unexpected expenses, and can put immense pressure on small businesses that are trying to compete in an increasingly competitive market. What’s more, these services have been known to change their terms and conditions without notice, leaving restaurateurs scrambling to keep up.
Ultimately, while delivery services may be convenient for consumers, they come at a high cost for small businesses – especially black-owned restaurants – that are already struggling to survive.
Benefits of Supporting Local Black-Owned Restaurants
As the popularity of food delivery apps like Uber Eats and Doordash continue to grow, many local black-owned restaurants are being left behind. These restaurants rely on customers coming in and dining at their establishment, but with people increasingly opting for the convenience of ordering delivery, these businesses are struggling to stay afloat.
Supporting local black-owned restaurants is important for a number of reasons. For one, it helps to keep money within the black community. When you order from a black-owned restaurant, you’re supporting a business that’s reinvesting in the community, as opposed to large corporations that often don’t have the best interests of minorities at heart.
Additionally, patronizing black-owned restaurants helps to promote diversity in the food industry. With so many chain restaurants dominating the landscape, it’s easy for small, independently-owned businesses to get lost in the shuffle. By supporting black-owned restaurants, you’re helping to ensure that there’s more than just one type of cuisine represented.
Eating at black-owned restaurants is a great way to experience some of the best food around. These chefs have perfected their craft and are serving up dishes that are truly unique and delicious. So next time you’re looking for something to eat, why not try something new and support a local black-owned restaurant?
