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<ul class="summary-list"><li>Ordering <a target="_blank" class="" href="https://www.businessinsider.com/the-delivery-reckoning-is-here-doordash-uber-instacart-gig-work-2024-7">food for delivery</a> can cost twice as much as dining in.</li><li>Some diners say it's enough to make them go get food themselves and save money.</li></ul>The price gap between getting your food yourself at a restaurant and having <a target="_blank" class="" href="https://www.businessinsider.com/how-delivery-driver-gets-big-tips-declines-orders-wealthy-areas-2023-4">dinner delivered</a> has become huge. That's forcing some people to cut back.Others say it's worth the extra cost.Ravi Wadan, a personal finance content creator in Seattle, posted a video on TikTok in February showing the cost of ordering a porchetta sandwich from a local deli through <a target="_blank" class="" href="https://www.businessinsider.com/drive-for-uber-eats-after-layoff-would-not-recommend-2024-7">Uber Eats</a>.The sandwich alone cost $19 through the Uber Eats app, according to the video — a $3 premium compared to what the deli itself charges. But with a service fee, taxes, and a separate fee that Uber Eats added in response to <a target="_blank" class="" href="https://www.businessinsider.com/seattle-gig-worker-new-law-advocate-instacart-job-deactivation-2024-2">Seattle's law on gig worker pay</a>, the cost of the sandwich comes to just over $34. A tip would raise the price even more, he told Business Insider in an interview. Instead of paying twice as much for delivery, Wadan said he now walks the four blocks to the deli to get the sandwich himself. "What's the cost-benefit analysis here? Is it worth me spending 10 minutes walking down the street and saving 20 bucks?" he said. "For me, it is."An Uber spokesperson said that the company operates "a dynamic marketplace" and that the fees on Wadan's order are "not representative of the national average."Uber tries to provide "selection, reliability, and value," the spokesperson said. "Everyone wants to know that when they open the Uber Eats app, they'll find what they're looking for and trust it will be delivered in a timely fashion at a price that works for them."There have been plenty of signs lately suggesting that many low- and middle-income diners are pulling back on spending. Fast-food chains like <a target="_blank" class="" href="https://www.businessinsider.com/restaurants-are-competing-to-offer-the-cheapest-meals-2024-5">McDonald's and Taco Bell</a> are offering revamped value options, hoping to lure in diners on a budget.Many diners are even driving themselves to <a target="_blank" class="" href="https://www.businessinsider.com/dominos-customers-increasingly-picking-up-pizzas-amid-high-delivery-costs-2024-7">Domino's to pick up their own pizzas</a> to save money on delivery costs, the company's CEO told BI in July.The premium that diners pay to have their food delivered can be hefty. A study from FinanceBuzz in January found that orders from <a target="_blank" class="" href="https://www.businessinsider.com/doordash-postmates-food-delivery-costs-twice-as-much-as-pickup-2024-1">McDonald's and Chick-fil-A can cost twice as much</a> through delivery services like DoorDash and Postmates as they would at the restaurant, for instance.That might make delivery seem like an obvious place for consumers to cut back their spending these days.But the delivery companies say that's not actually happening.Both DoorDash and Uber reported earnings this summer that surpassed analysts' expectations — and showed that lots of <a target="_blank" class="" href="https://www.businessinsider.com/why-doordash-instacart-still-delivering-lots-as-consumers-pull-back-2024-8">people are still willing to pay for delivery</a>, even if they're being more thrifty in other areas."We're seeing really strong demand on the consumer side," DoorDash CEO Tony Xu said on the company's earnings call in August. "We're not actually seeing some of the challenges that you may be hearing about or reading about in other headlines."DoorDash customers have continued ordering food — and, increasingly, groceries and other products — from the service, Xu said. Both DoorDash and Uber Eats have also seen growth in their subscription programs, which come with a monthly fee but offer discounts on individual orders, among <a target="_blank" class="" href="https://ir.doordash.com/news/news-details/2024/DoorDash-Partners-with-Max-to-Introduce-First-Ever-Streaming-Benefit-for-DashPass-Members-in-the-U.S/default.aspx">other benefits</a>."By any objective measure, we have not seen a consumer pullback, either broadly or in our own results," a DoorDash spokesperson told BI. "Consumers across very different economic environments are willing to pay for what they value, and we've improved our platform to serve more use cases, to get those things to you at a lower cost, and to make sure you get what you want when you want it."Uber, meanwhile, hasn't seen its customers stop using the platform for delivery or rideshare, CEO Dara Khosrowshahi said during the company's earnings call last month. Uber's clientele skews more affluent, he said, though the company hasn't even seen a drop-off with lower-income customers."It's clear that delivery is much more habitual than many assumed," Khosrowshahi said.Even Wadan, the content creator who posted on TikTok, said he still uses delivery sometimes. He and his wife still have Thai food delivered, for instance, when they have friends over in the evenings and don't want to interrupt socializing with a trip to pick up dinner."There are certain instances where we just order the food because it's convenient and it just makes sense," he said.Do you work for a gig delivery service and have a story idea to share? Reach out to this reporter at <a target="_blank" href="mailto:abitter@businessinsider.com">abitter@businessinsider.com</a>

Ordering delivery has gotten wildly expensive

<ul class="summary-list"><li>Amazon is reportedly developing <a target="_blank" class="" href="https://www.businessinsider.com/meta-ray-ban-smart-glasses-gen-z-friends-review-photos-2023-11">smart glasses</a> that its delivery workers could use.</li><li>The glasses could provide navigation and take pictures of packages upon delivery, Reuters reported.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/amazon-delivery-driver-pay-rise-union-pressure-2024-9">Amazon</a>'s next attempt to speed up package delivery may involve smart glasses.The online retailer is developing glasses for its delivery workers that could show them exactly where to go in a building, such as which way to turn in order to find a delivery location, and take pictures of packages once they're delivered, <a target="_blank" class="" href="https://www.reuters.com/technology/amazon-developing-driver-eyeglasses-shave-seconds-off-deliveries-sources-say-2024-11-11/">Reuters reported</a> on Monday, citing unnamed sources with knowledge of the project.Having that information on a small screen embedded in the glasses instead of a smartphone or other hand-held device would free up workers to carry more packages and save time on deliveries, Reuters reported.The project, known within Amazon by the code name "Amelia," is far from certain to launch, according to the report. Some challenges that Amazon has reportedly faced include creating a battery with enough capacity for a several-hour-long delivery shift and gathering enough location data for the glasses to guide workers."We are continuously innovating to create an even safer and better delivery experience for drivers," an Amazon spokesperson told Business Insider. "We otherwise don't comment on our product roadmap."Amazon, like Meta and Snap, has previously developed smart glasses that were consumer-facing.Amazon has offered <a target="_blank" class="" href="https://www.businessinsider.com/amazon-echo-frames-smart-glasses-hands-on-2019-9">Echo Frames</a>, its smart glasses for consumers with voice assistant Alexa integrated, since 2019. The Echo Frames don't include cameras or an integrated display but do feature microphones and built-in speakers. Amazon is using Echo Frames as the basis of its delivery-focused version, according to Reuters. Sales of the latest version of Echo Frames totaled fewer than 10,000 over the past year, according to the report.Glasses for delivery drivers would be another way that Amazon is using technology to try to make its delivery operations more efficient, especially during the final stretch, or "last mile," of delivery.Amazon is already planning to add <a target="_blank" class="" href="https://www.aboutamazon.com/news/transportation/amazon-vapr-delivery-van-packages">AI technology</a> that will show its delivery people which packages to deliver in the back of delivery vans at specific stops starting in early 2025.The company announced in July that it had delivered 5 billion items to Prime members globally on the same day or the following day so far this year, a 30% year-over-year increase. Over the years, some <a target="_blank" class="" href="https://www.businessinsider.com/amazon-delivery-drivers-dsps-working-conditions-legal-threat-2021-9">Amazon delivery workers</a> have said that Amazon has highly ambitious delivery targets and expects them to deliver more packages than they can during their shifts.In October, Amazon CFO Brian Olsavsky said that the company's quick delivery times are making it more attractive for customers to order <a target="_blank" class="" href="https://www.businessinsider.com/amazon-seeing-surge-sales-cheaper-items-2024-11">cheap, everyday items</a>, such as beauty products and shelf-stable groceries, from the retailer.Amazon is also opening more facilities designed to deliver customers' orders — including those placed through <a target="_blank" class="" href="https://www.businessinsider.com/amazon-prime-orders-deliveries-faster-than-ever-2024-4">Amazon Prime</a> — on the same day that they're placed.Are you an Amazon delivery or retail worker? Do you have information or a story idea to share? Reach out to this reporter at abitter@businessinsider.com

Amazon targets smart glasses that could guide delivery drivers to where to drop off packages, report says

<ul class="summary-list"><li>Grocery delivery services can save time and energy, and I used to rely on them. </li><li>But I've mostly stopped using them and now, I shop with my kids instead. </li></ul>When <a target="_blank" href="https://www.businessinsider.com/guides/kitchen/best-places-stores-buy-online-grocery-shopping-order">online grocery ordering</a> became a thing, I quickly became hooked. It was a novelty to be able to shop from the couch and buy back an hour or so of time each weekend. Ordering groceries online suddenly made the unavoidable task of grocery shopping efficient, and I loved it.After my kids were born, my love for online grocery ordering grew even more. Ordering online meant avoiding schlepping them and their gear into the store and made the process of getting groceries for the family much easier.My perspective has changed as time has gone by. While I used to use a <a target="_blank" href="https://www.businessinsider.com/amazon-grocery-delivery-compares-walmart-target-2024-4">grocery delivery service</a> nearly every week, I only use it in a pinch now.<h2 id="91a11083-f596-4d50-809e-cd39b99e58fa">Grocery shopping is an activity to do with my kids</h2>Now that my kids are out of the baby phase, I always need <a target="_blank" href="https://www.businessinsider.com/mom-says-planning-kid-activities-months-in-advance-is-hectic-2023-3">weekend activities</a>. Going to the grocery store can easily fill up 1-2 hours, and my girls really enjoy shopping. One store that we frequent offers free cookies to kids, one store has a train that circles the dairy section, and another has shopper-in-training carts that my oldest thinks are the coolest to push around as we shop.My girls like to help put things into the cart and love suggesting different items to buy. I enjoy talking to them about the various things left on our list while they are securely nestled in the cart. If I want to extend the activity, I'll have them help me scan our items at self-checkout.<div type="image" title="Elliott Harrell's daughter pushing the small cart at the grocery store." height="576" width="768" msid="111165224" hostid="261" sizebytes="43900"></div><h2 id="22c9d967-a6f0-4b8b-95ab-6f60cd3c93f9">The extra cost of online grocery ordering isn't worth it to me anymore</h2>Ordering groceries online often costs more than <a target="_blank" href="https://www.businessinsider.com/how-much-budget-groceries-family-four-couples-one-person-inflation-2024-4">shopping in the store</a>, sometimes as much as 15% more for online items than in-store items. On top of that, there can be things like pick-up fees, service fees, delivery charges, and tips if you use a grocery delivery service.Earlier in the pandemic, all these extra costs were worth it to me to avoid going to the store. The extra costs were also worth it when I had a newborn and didn't want to lug her into the store.But with <a target="_blank" href="https://www.businessinsider.com/why-youre-still-spending-much-of-your-budget-on-food-2024-2">grocery prices rising</a>, I had to rethink whether the additional costs were worth it. If I'm in a pinch, then I find they are. It's worth it to me to pay the extra cost for grocery delivery when I'm coming back from being out of town, for example, but otherwise, I can't justify the extra spend anymore. The fees can easily add $20-$30 (if not more) to our bill, and I'd rather use that money elsewhere.<h2 id="69f6dd3a-057d-42d6-929d-cb29f3e543e2">Occasional mistakes mean I sometimes have to go grocery shopping anyway</h2>On three occasions, I've shown up to collect my grocery order and found that someone else has claimed it. That's an extreme outcome, but other issues have popped up more frequently than they used to.I've seen an uptick in the wrong item being selected, like the shopper selecting skin-on chicken breast when I requested boneless skinless <a target="_blank" href="https://www.businessinsider.com/ina-garten-easy-3-ingredient-chicken-recipe-dinner-2024-4">chicken breast</a> or selecting severely bruised produce. Shopping online means you need to select a specific item for the shopper to get. If I were shopping in person, I'd just grab an alternative if I couldn't find the exact item, but this doesn't usually happen when someone is shopping for you.All of this means that I end up having to go to the grocery store anyway, usually stressed because I was counting on the grocery delivery service to save time. It's a wrinkle in my day that I'd rather avoid, which means I'm better off doing the shopping myself.Using a grocery delivery service can save time and energy, but it also comes with added costs and, oftentimes, frustration. I'll continue to use it sparingly when I'm in a pinch, but otherwise will stick to in-person shopping.

I used to rely on grocery delivery services to save time. Now, I shop with my kids — they love it, and I save money.

<ul class="summary-list"><li>Delivery apps like Instacart and Walmart Spark often 'batch' orders together.</li><li>But gig workers say it cuts into their income since they get paid less for each order delivered.</li></ul>Last summer, some gig workers who delivered grocery orders for Walmart noticed a change: Instead of just delivering one order, they had to deliver two or three at once."Three grocery orders can also be delivered during each trip by using your front seat, back seat, and trunk space to keep these orders separate," Walmart told workers for its Spark service at the time in an email. The advice is now on the company's <a target="_blank" href="https://drive4spark-walmart.helpdocs.io/l/en/article/pmpzf3r7s7-understanding-offer-types">website for Spark drivers.</a>The practice of bundling orders isn't new. Other apps, including Instacart and DoorDash, have been doing it for years.But four independent contractors who make the deliveries told Business Insider the practice usually leaves them doing more work for less money, further eroding their earning potential on gig-work apps. The workers declined to have their names used, but BI verified their identities.Many <a target="_blank" href="https://www.businessinsider.com/golden-age-gig-work-instacart-doordash-delivery-jobs-over-2023-12">gig workers say that their earnings have fallen</a> over the past year because of lower pay and greater competition among drivers for orders.<h2>Drivers have a choice, companies say</h2>Batches have been part of Instacart's strategy for "several years," a company spokesperson told BI."Batches that include orders from multiple stores make up a very low percentage of batches on our platform," an Instacart spokesperson said. "As with any batch, shoppers are never required to select multi-order or multi-store batches."Batches with multiple orders are "compensated accordingly and reflect the effort it will take to fulfill those batches," the spokesperson added."Batching is a win for drivers and our customers," a Walmart spokesperson said. "Drivers often prefer offers for batched deliveries and receive higher average earnings per trip while spending less time per delivery. Batching is also a way to serve more customers more efficiently and accurately.""We're proud to offer multiple types of deliveries, and drivers can choose which offers to accept based on their preferences," the spokesperson said.A DoorDash spokesperson did not provide comment for this article.<h2>Drivers find angry customers, lower ratings, lost tips</h2>The experience can be frustrating for customers. Customers can track where their driver is using the Walmart app, but they have no clue when their driver has more than one order to deliver, one Spark driver in Alabama told BI."Some customers get angry wondering why it's taking so long," the Alabama driver said. "On their end, they just see a vehicle driving all over the city with their groceries in it." In reality, the driver is following a route created by Walmart to deliver the orders, and someone's order has to be delivered last.Customers give drivers low ratings and pull away tips as a result, the driver told Insider.Walmart also batches together orders of non-perishable goods, such as shampoo and electronics, often combining a dozen or more orders together for one driver to deliver. "They're trying to be like FedEx and UPS, but they'll put 10 orders in one whole trip, and you might get $24 to $30 for that," one Spark driver in North Carolina told BI.The pay can be reasonable if the delivery addresses are close together, the driver said. But if they're more spread out, the deliveries take more time, making it less profitable, he added.On Instacart, shoppers used to shop and deliver one order at a time. But over the last few years, <a target="_blank" href="https://www.businessinsider.com/instacarts-profitability-relies-on-batching-orders-its-shoppers-hate-it-2023-8">Instacart has bundled two or three deliveries together</a>. The bundling, known as a "batch" in Instacart lingo, is one of the ways it improved its profitability ahead of its IPO last September, it said in filings with the SEC.One Instacart shopper in New York City said that they make less per order when they deliver a batch of two or three at once instead of a single delivery.More complicated – and generally less profitable – are batches that involve shopping multiple orders at different stores, then delivering them to different addresses, the shopper said."Two-store orders are even worse because it's like one store in Queens, the other in Brooklyn," the shopper told Business Insider. "They really don't understand the distance."Orders also get bundled together on restaurant delivery apps such as DoorDash and Uber Eats. Earnings aside, those batches often present another challenge for gig workers: Getting food to customers before it gets cold — or hot.One DoorDash customer expressed frustration that they were the third stop for the Dasher delivering their order in <a target="_blank" href="https://www.reddit.com/r/doordash/comments/13kezqx/double_dashing_is_really_annoying_for_customers/">a Reddit post</a> last year."He picked my food up from the restaurant that is 7 minutes away, but he has two other stops in the opposite directions before he gets to me," the poster wrote of the delivery worker. "And I ordered ice cream too.""If your food is unacceptable when you receive it, (especially the ice cream), you should complain to DoorDash that your food is ruined because your Dasher was on a triple stacked order," one commenter wrote.Do you work for Instacart, Spark, or another delivery service and have a story idea to share? Reach out to this reporter at abitter@insider.com

Why is your grocery delivery taking so long? Your driver has 2 other deliveries.

7 Amazon retail stumbles, from grocery delivery to clothing stores

I spent $70 ordering groceries on Getir, the ultra-fast delivery app. The service was super speedy, but it wasn't perfect.

<ul class="summary-list"><li><a target="_blank" class="" href="https://www.businessinsider.com/consumer-spending-decline-how-retailers-respond-inflation-prices-walmart-costco-2024-6">Consumers have been pulling back spending</a> lately on a range of goods.</li><li>But they're still having lots of stuff delivered, <keyword id="20026068" type="General" weightage="20" keywordseo="DoorDash" source="keywords" meta.keywordsubtype="org" meta.entityname="DoorDash" meta.hostid="261" meta.entityid="DoorDash">DoorDash</keyword>, <keyword id="20579876" type="General" weightage="20" keywordseo="Instacart" source="keywords" meta.keywordsubtype="org" meta.entityname="Instacart" meta.hostid="261" meta.entityid="Instacart">Instacart</keyword>, and <keyword id="19895382" type="General" weightage="20" keywordseo="Uber" source="keywords" meta.keywordsubtype="org" meta.entityname="Uber" meta.hostid="261" meta.entityid="Uber">Uber</keyword> earnings show.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/shoppers-spending-less-retailers-brands-cutting-prices-economy-explained-why-2024-7">Shoppers are cutting back spending</a> on everything from snacks to washing machines. But when they do buy something, they're still willing to have it shipped right to their doorstep, earnings from the <a target="_blank" class="" href="https://www.businessinsider.com/golden-age-gig-work-instacart-doordash-delivery-jobs-over-2023-12#:~:text=The%20golden%20age%20of%20working%20for%20Instacart%2C%20DoorDash%2C%20and%20other,apps%20is%20over%2C%20workers%20say&amp;text=Delivering%20groceries%20and%20takeout%20as,said%20in%20dozens%20of%20interviews.">major delivery companies</a> suggest. During Uber's second quarter, "the number of first-time consumers on Uber Eats in the US was higher than at any point over the past 5 quarters," CEO Dara Khosrowshahi said during a call on Tuesday. Later in the day, Instacart reported a 10% jump in the value of transactions on its platform during the second quarter. Most of that increase came as customers placed more orders, CEO Fidji Simo said on a call with analysts. And Instacart's average order value during the quarter was $116 — the highest in about three years, Robert Mollins, a Gordon Haskett analyst, wrote in a research note on Wednesday. The two reports follow similar results from DoorDash last week. Total orders rose 19% during the company's second quarter, it said on August 1. Shoppers are also still dealing with historically high prices, especially for food, even though inflation has slowed over the last few months. And delivery, especially through third-party services, often costs customers extra compared to picking something up at a store. One <a target="_blank" class="" href="https://www.businessinsider.com/instacart-shoppers-forbidden-from-giving-customers-paper-receipts-2023-8">Instacart customer posted on TikTok after finding out that she paid nearly $100 more</a> in markups ordering groceries through the service than she would have if she had gone to the supermarket herself, for instance. Before the latest round of earnings, "investors were concerned about softening <keyword id="20139791" type="General" weightage="20" keywordseo="consumer-spending" source="keywords">consumer spending</keyword> at restaurants," Mollins wrote in a note last week. That could impact delivery companies. Those fears were eased once DoorDash reported another strong quarter of order growth, he added. "We're not actually seeing some of the challenges that you may be hearing about or reading about in other headlines," DoorDashCEO Tony Xu said during an investor call. To be sure, part of Doordash's growth has been due to expansion beyond its traditional restaurant delivery realm. This year, for example, the company <a target="_blank" class="" href="https://www.businessinsider.com/doordash-instacart-challenging-ups-fedex-for-retail-deliveries-2024-7">started delivering orders for Lowe's</a> and added to its partnership with beauty retailer Ulta. "Increasingly, we're seeing customers coming to us for the first time actually for non-restaurant use cases," Xu said. Customers who have their purchases delivered aren't a perfect proxy for the broader economy, too. Uber's Khosrowshahi said that his company is "not seeing any softness or trading down across any income cohort." However, he acknowledged that the company's consumers "tend to be higher income" than the general population. Still, the delivery companies are offering deals for customers who want to get the best bang for their buck. "The cost of groceries continues to be top of mind for consumers," Instacart's Simo wrote in a letter announcing the quarterly results. She pointed to several Instacart efforts to keep prices low for customers, such as creating digital versions of circulars traditionally found in newspapers as well as offering free delivery windows meant to attract new customers. Do you work for DoorDash, Instacart, Uber Eats, or another gig delivery service and have a story to share? Reach out to this reporter at abitter@businessinsider.com Correction: August 9, 2024 — An earlier version of this story misstated Instacart’s average order value in the second quarter. It was $116, not $106.

Americans are still having a lot of stuff delivered from DoorDash and Uber, and it shows how much we'll pay for convenience

<ul class="summary-list"><li>DoorDash has partnered with two companies to use hourly employees with benefits.</li><li>That's a change for a delivery service that built its business on contractors who are paid per gig.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/most-doordash-workers-spend-surprisingly-short-time-doing-job-2024-9">DoorDash</a> is experimenting with using employees with benefits — not just independent contractors — to make deliveries.The delivery service is working with at least two local delivery providers, one in Austin, Texas, and another in Fresno, California, through its <a target="_blank" class="" href="https://about.doordash.com/en-us/local-commerce-service-partner?_gl=1*ng6v7y*_gcl_aw*R0NMLjE3MjIyNjYzMjcuQ2owS0NRanctNXkxQmhDLUFSSXNBQU1fb0tubGp5QjdiOHNzU05OdDR6dE1Bcl9kZmd3YlJTQkpGUTBORE5RaVM3YVdUVkRoTVRYMHlNZ2FBbDJERUFMd193Y0I.*_gcl_dc*R0NMLjE3MjIyNjYzMjcuQ2owS0NRanctNXkxQmhDLUFSSXNBQU1fb0tubGp5QjdiOHNzU05OdDR6dE1Bcl9kZmd3YlJTQkpGUTBORE5RaVM3YVdUVkRoTVRYMHlNZ2FBbDJERUFMd193Y0I.*_gcl_au*MTg2ODQwNTE2MC4xNzE5OTI1Nzc0&amp;_ga=2.69043863.760568407.1727102173-897592233.1703081308">Local Commerce Service Partner Program</a>. The local providers handle hiring the employees, but the orders that they fill come from DoorDash.Websites for both companies say they are hiring W2 employees. That's a big change from the gig workers that DoorDash and other delivery services have largely built their businesses on.Though small in scale, the partnerships represent a fundamentally different business model from the one that DoorDash has used to become one of the world's largest delivery services.Since its founding in 2013, DoorDash has relied on independent contractors, who are generally paid for each delivery they complete and have more flexibility about when they work than traditional employees. Uber, Lyft, Instacart, and other delivery companies have also relied on gig workers to build their businesses, leading millions of people in the US into the gig economy.But using employees who are paid hourly and work shifts of up to several hours at a time helps make sure DoorDash always has people on hand to make deliveries, a company spokesperson said."We remain committed to preserving and protecting the flexibility of independent work that the vast majority of Dashers prefer," a DoorDash spokesperson said, referring to the company's independent contractors."However, we also know there is a small subset of workers who prefer set schedules and the predictability of W2 work, which is why we're piloting LCSP in select markets to focus on maintaining healthy supply levels and supplement the handling of new and different types of orders," the spokesperson added.LCSPs are local commerce service partners, or businesses that "operate their own delivery business and employ their own fleet of delivery associates who fulfill deliveries offered through the DoorDash platform," according to DoorDash's website.One of the partner companies, Fresno Logistics, says on <a target="_blank" class="" href="https://www.fresnologistics.com/dash/">its website</a> that it offers "high-quality logistics services to restaurants, grocery and convenience stores, and a variety of other businesses (e.g., retail) in the Fresno, CA area through the DoorDash Platform."Fresno Logistics' website touts the benefits for potential hires, including a $16-an-hour wage, tips, reimbursement for miles driven while on the job, healthcare, and paid time off. While not a direct comparison, that's much more than some gig delivery workers take home: A <a target="_blank" class="" href="https://www.businessinsider.com/uber-lyft-doordash-drivers-earn-below-minimum-wage-tips-study-2024-5">UC Berkeley study</a> this year found that many make less than minimum wage after accounting for expenses such as gas.Austin-based LCSP One, meanwhile, says on <a target="_blank" class="" href="https://lcspone.com/">its website</a> that it pays W2 workers $13 an hour plus tips and a per-mile reimbursement of 10 cents. Full-time delivery employees work four 10-hour shifts scheduled Monday through Friday each week, while part-time workers must make at least 20 hours worth of deliveries, according to the website.The home page of its website says that the company offers employees "gig-work mentality with a career mindset."Fresno Logistics and LCSP One did not respond to requests for comment from Business Insider.Gig workers lack many of the benefits and legal protections that employees get. Some gig workers have said that their pay has decreased over the last few years, especially compared to early 2020, when demand for the delivery of groceries, takeout food, and other goods rose.Others have had their accounts on the delivery apps deactivated with little or no explanation. And some gig workers have pointed to performance metrics, such as the percentage of potential orders that they accept, saying that they make the work more <a target="_blank" class="" href="https://www.businessinsider.com/doordash-grubhub-uber-workers-gig-work-feels-like-a-job-2024-8">like a traditional job.</a>Making deliveries as an employee could solve some of those problems by giving workers more predictable pay and reimbursing them for miles driven.The amount delivery services pay gig workers has been going up in some cities, too. <a target="_blank" class="" href="https://www.businessinsider.com/doordash-regulatory-response-fee-nyc-minimum-wage-law-delivery-workers-2024-2">New York City</a> and <a target="_blank" class="" href="https://www.businessinsider.com/instacart-doordash-pushing-back-against-seattle-gig-worker-laws-payup-2024-4">Seattle</a> recently enacted laws meant to raise gig worker pay.Do you work for a gig delivery service and have a story idea to share? Reach out to this reporter at <a target="_blank" href="mailto:abitter@businessinsider.com">abitter@businessinsider.com</a>

DoorDash is trying a new way of making deliveries — and it doesn't involve gig workers

<ul class="summary-list"><li>Companies like DoorDash and Uber Eats have spent years building <keyword id="19998733" type="General" weightage="20" keywordseo="delivery-services" source="keywords">delivery services</keyword>.</li><li>But the <keyword id="19940300" type="General" weightage="20" keywordseo="CEO" source="keywords">CEO</keyword> of <a target="_blank" class="" href="https://www.businessinsider.com/dominos-ceo-summer-value-5-dollar-meals-fast-food-burgers-2024-7">Domino's</a> says the company is seeing a surge in <keyword id="22630332" type="General" weightage="20" keywordseo="carryout-orders" source="keywords">carryout orders</keyword>.</li></ul>Startups, retailers, and brands have spent over a decade figuring out how to make <a target="_blank" class="" href="https://www.businessinsider.com/walmart-going-after-amazon-with-ecommerce-strategy-from-target-2023-12">delivery to customers work.</a> But <keyword id="21952347" type="General" weightage="20" keywordseo="Dominos" source="keywords" meta.keywordsubtype="org" meta.entityname="Domino's" meta.hostid="261" meta.entityid="Domino's">Domino's</keyword>, the pizza chain known for delivery, is having success drawing <keyword id="19947994" type="General" weightage="20" keywordseo="customers" source="keywords">customers</keyword> to its restaurants to pick up their own orders. "Our carryout business is on fire," CEO Russell Weiner told Business Insider in an interview. "This is something we didn't even contemplate years ago." That business was a bright spot for Domino's during its second quarter. The company's carryout comparable sales grew 7.9%, while delivery comparable sales rose 2.7% during the same period. People who order for delivery and those who stop by a restaurant to carry their orders out are mostly two separate groups with different priorities, Weiner said. He said delivery is about convenience, and customers who order their food for delivery are willing to pay the extra fees and tip their driver. Besides operating its own delivery service, Domino's also offers delivery through Uber. The third-party service accounted for 1.9% of Domino's sales during its second quarter. "We see only about 15% overlap between our carryout and delivery customers," he said. But other, more budget-conscious consumers realize that they can get "more than another pizza" with the money they spend on delivery fees and tips, he said, adding that delivery is an "expensive convenience" for many US consumers. Delivery services gained popularity during the pandemic as consumers stayed at home and had everything from a restaurant meal to electronics delivered by the likes of DoorDash, Instacart, Uber Eats, Walmart Spark, and other services. But as society reopened and prices soared for many consumer goods, especially food, many <a target="_blank" class="" href="https://www.businessinsider.com/return-to-work-mandates-could-mean-more-trouble-for-instacart-2023-4">customers cut back on their delivery habits.</a> Some also realized that they were paying a big premium to have stuff brought to their door. <a target="_blank" class="" href="https://www.businessinsider.com/instacart-shoppers-forbidden-from-giving-customers-paper-receipts-2023-8">One Instacart customer</a> posted on TikTok after realizing that she had paid close to $100 in markups on her groceries — excluding delivery fees and a tip. Many people are also opting to drive to their local Domino's and pick up orders themselves for another reason: Control. Many carryout customers prefer the option over delivery because they're worried about what they'll have to do if something is wrong with their delivery order or whether it will show up in time for a party. "This person's like, 'I don't care if it's out of my way, I'm going to pick it up because it's going to be right,'" he said. "It is a completely different customer." Domino's has also attracted many new carryout customers by opening more restaurants and cutting the distance that customers have to drive, thus making picking up an order less of a hassle. "They don't want to drive past three or four pizza places," he said of Domino's customers. "They're going to the first one." Do you work in the restaurant industry and have a story idea to share? Reach out to this reporter at abitter@businessinsider.com Correction: July 29, 2024 — An earlier version of this story misstated the percentage of Domino's sales that occurred via Uber during the second quarter of 2024. It was 1.9%, not 3%.

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