Third-Party Delivery Apps Value Questioned (BBJ Story)
A growing number of local restaurants are dropping Grubhub and third-party delivery apps, including Uber Eats, DoorDash and Postmates, at a time when many in the dining industry are relying on deliveries to keep business flowing in.
The apps' detractors complain commissions and fees for food orders are too costly and allege that companies like Grubhub have been unwilling to negotiate on rates. Grubhub, for its part, says it is open to working with restaurants "to help them manage costs and grow their businesses." Bars and restaurants in Maryland have been limited to takeout and delivery orders since mid-March, when Gov. Larry Hogan shuttered dining rooms to help stem the spread of the novel coronavirus, though the governor announced this week that they can start to offer limited outdoor service beginning Friday at 5 p.m. Restaurants that do use the delivery apps, meanwhile, say they offer a significant line of business and provide services like marketing and delivery staff that they have not invested in themselves.