Food Delivery Apps: Last Week Tonight with John Oliver (HBO)

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Impact on Restaurants

Food delivery apps charge high commissions to restaurants, taking up to 58% of an order's total cost.
Some restaurants have increased their prices on the apps to offset these fees, leading to higher costs for customers.
Delivery apps have been accused of listing restaurants without their permission or knowledge, leading to unexpected orders and customer disappointment.
GrubHub was caught sending undercover employees to pick up orders and deliver them without the restaurants' knowledge, compromising food safety.

The industry practice of using third-party delivery services without proper packaging or safety measures raises concerns about food quality and handling.
GrubHub has been accused of engaging in questionable tactics, such as listing non-partnered restaurants as closed or unavailable, which harms businesses.
Restaurant owners have expressed dissatisfaction with delivery apps, comparing them to hostage situations and criticizing their exploitative practices.

Delivery workers face significant challenges, including high expenses for equipment and maintenance, opaque algorithms that control their wages and working conditions, and a lack of labor protections and health insurance.
The gig economy model often presents delivery driving as a flexible side job, but for many workers, it is their primary source of income, making them vulnerable to exploitation.
Delivery workers often rely on tips, which can make up a significant portion of their earnings, but these tips are not guaranteed and can vary greatly.

Uber Eats, DoorDash, and Grubhub are losing money despite being valued at billions of dollars.
The old model of delivery involved one restaurant directly hiring a delivery worker, but the new apps introduce additional costs such as marketing, lobbying, and website maintenance.
The companies are using Wall Street money to grow at all costs, corner the market, undercut competitors, and then monopolize the sector to raise prices.