That’s always how it’s been though. The difference is that in-house delivery is actually optimized for delivery volume, and restaurants which don’t have that volume or workflow just don’t have in-house delivery. When I drove pizza in college, I would take like 5 or 6 deliveries per hour, all within a 10 minute radius. Turnaround time from getting to the restaurant and back out the door would be a minute or two, and I’d leave with at least three different orders. That was good for $50/hr in tips during the dinner rush. Even a regular weeknight would be good for $100-150 in a 6 hour shift.
With the app ecosystem, it’s just impossible hit that kind of efficiency because you are almost always taking one order at a time, and you end up waiting on the restaurant most of the time.
Sorry I was blinded by my bias of living in a non-tipping country where delivery drivers are covered under an ‘award rate’ (a national agreed standard) of about $25/hour. Without the efficiencies of volume you’re talking about its been pretty clear from day one that these apps only work if they exploit ‘gig workers’.
But instead of recognising that, the tech companies have been pouring millions into trying to deregulate the industry and fighting to establish new award rates instead of being subject to the Fast Food or Transportation award rates.
Nah it’s worse than that. The economics of the model are bad. It essentially relies on delivery drivers having to survive on tips and nothing more.
That’s always how it’s been though. The difference is that in-house delivery is actually optimized for delivery volume, and restaurants which don’t have that volume or workflow just don’t have in-house delivery. When I drove pizza in college, I would take like 5 or 6 deliveries per hour, all within a 10 minute radius. Turnaround time from getting to the restaurant and back out the door would be a minute or two, and I’d leave with at least three different orders. That was good for $50/hr in tips during the dinner rush. Even a regular weeknight would be good for $100-150 in a 6 hour shift.
With the app ecosystem, it’s just impossible hit that kind of efficiency because you are almost always taking one order at a time, and you end up waiting on the restaurant most of the time.
Sorry I was blinded by my bias of living in a non-tipping country where delivery drivers are covered under an ‘award rate’ (a national agreed standard) of about $25/hour. Without the efficiencies of volume you’re talking about its been pretty clear from day one that these apps only work if they exploit ‘gig workers’.
But instead of recognising that, the tech companies have been pouring millions into trying to deregulate the industry and fighting to establish new award rates instead of being subject to the Fast Food or Transportation award rates.
Link: https://www.keypointlaw.com.au/keynotes/workplace-insights-fair-work-commission-considers-new-modern-award-for-on-demand-delivery-drivers/