Wouldn’t it be beneficial when there is a delivery system for a donut? Some people do not eat the donut because driving to the donut shop can take a long time as traffic jams are severe, like people who are going to work, and parents who are dropping children to school. Morning traffic is the toughest time to drive, but to get fresh donut breakfast, you have to overcome this, and one of the easy ways is using uber eats.
Since some donut shops can not afford their delivery service system, there was an idea about using other companies that give delivery services. One of the companies that was on the candidate list was uber eats. But before that, by using uber eat as an example, donut shops tried to understand the mechanism of the third party delivering services to check how much they have to pay to the third party for using delivery service.
The basic price of using uber eats without concerning distance or time is flat fee, which is determined by the number of pickup places and drop off places that uber goes. These fees are easy to calculate compared to other prices. Another price is easy to calculate is the service fee, which is always set by 15 percent of the subtotal.
Prices that are complicated to calculate are based on miles and time. These prices are calculated in cities, but not all the towns apply these prices. It measures the prediction of many minutes are needed to deliver, and prediction miles it has to go.
These are prices that are applied to customers when they use the service uber eats made. But, since uber eats consist of diverse modes of delivery from the automobile to motorcycle, they change the price according to the type. Therefore, uber eats made reduced fare that decreases the price according to driving modes from luxury professional uber to motorcycle uber. However, it is only applied to some cities.
But the sum of these prices is equal to the total cost only when the fee is over 10 dollars. When the total cost of the food is less than 10 dollars, people have to pay an additional 2 dollars as a small order fee.
These prices that are earned by delivering food to customers have to be distributed. First, Uber company gets 30% of the total sum excluding tax, and flat fees and fees based on time and miles go to drivers. Therefore, when donut shops use uber eats, then they have to consider that their price gets reduced by 30%, which makes shops reduce profit greatly. To solve this problem, donut shops have to negotiate with the uber eats or raise the price of the donut to protect their earnings.
The donut shop’s disadvantage does not only include net profit reduction, but also include taste reduction. If transferring the food takes a long time, or if donut box rolls around the car because of the sudden car brake, then customers have to get the food that is cold or deformed. To reduce the possibility of these incidents occurring, donut shops have to come up with methods that are safe for driving purposes. But uber eats also deals with these problems by discounting or refunding if the case is dire
However, if donut shops use uber eats or any other third group which will provide delivery service, donut shops can get additional customers who want to eat donuts without getting caught by traffic jams. Also, it will make other customers who were surfing for the food to be interested in donuts and order donuts, which will result in increased salary.
There are few problems with using third party delivery service, but even so, the benefits of delivery service are overwhelming. Therefore, donut shops should consider using the delivery service provided by the third party.