In an article for Venture Beat, Michael DiBenedetto, cofounder and CEO of food delivery search engine Bootler, predicts that surge pricing will shape the future of online food ordering and delivery.
Why now? DiBenedetto cites several reasons.
1. Drivers are demanding higher wages, so securing and keeping them can be ridiculously expensive.
2. Drivers are becoming more litigious, taking to the courts to demand benefits – and winning in some cases.
3. Venture capital is on the decline, meaning fewer deals and IPOs and that the deliverers of food can no longer count on investors to subsidize their growth.
Taken together, these factors mean that food delivery companies need to compensate. With already slim operating margins, consumers must make up the difference in the form of increased delivery charges.
The economics spell inevitability, according to DiBenedetto. “As prices fluctuate and loyalty erodes, food deliverers will find new ways to stand out from their competition.” Read more