Cost of food delivery is much higher than the food itself. Who is losing money in the process?
The Price Of Convenience
Food tech industry is responsible for creating the convenient form of food delivery for consumers. The purpose of food delivery is to get your food delivered to their doorstep or the location of your choosing. Despite the ease of the process, customers have complained of the high cost of the food delivery. For instance, the price of a pizza is $8.00 and the delivery charge is $4.00 and that makes the customer question whether the delivery service charge is worth the price of food.
Consumers are well aware that the cost of delivery is much higher than the cost of food. Since they’re are seeking the convenience of delivery, they begrudgingly shell out the extra payment. However, there is still a big untapped market out there that refuses to participate in the delivery convenience due to the extra cost of it.
Does convenience automatically become the cause of price increase? Food tech apps have made users reluctant to rely on delivery services because of price. There are numerous different platforms to use to combat the delivery prices. For instance, pick up may not be convenient, but the price would be considerably less. If people choose not to adapt to the overpriced convenience the platforms would be more inclined to lower their prices. At the end of the day, everyone participant of this process is trying save or make money.