Since the early 2010s, delivery platforms like DoorDash, Uber Eats and Grubhub have become popularized and in turn, have transformed the way consumers interact within the fast food industry. As these platforms have grown, so has their influence over industry policies, labor practices and pricing structures.
Delivery platforms have become a major part of the fast food economy. According to a report from “Statista,” the global online food delivery market was valued at $130.2 billion in 2022 and is expected to grow to $223.7 billion by 2027. DoorDash alone operates over 65% of the U.S. food delivery market as of 2024, according to “Second Measure.” This monopolizing behavior has allowed food delivery platforms to gain exclusive and highly beneficial contracts with fast food chains, further empowering them and shaping how the food industry is marketed and delivered to consumers.
The platforms have specifically garnered traction through the way they brand their service, through the convenience they claim to offer, shifting consumer habits to ones never seen before. Data from the National Restaurant Association shows that 62% of adults say they are more likely to order food for delivery than dine in, up from 39% in 2019. This growing reliance on delivery gives platforms a leg up over both restaurants and consumers, moving to create and influence all facets of the fast food industry.
One of the most controversial issues surrounding delivery platforms is their treatment and idea of gig workers. Delivery drivers for DoorDash, Uber Eats and other platforms are classified as independent contractors rather than employees, which allows companies to abstain from providing them with health insurance, paid leave or retirement pay. The Economic Policy Institute reported that the average gig worker earns $11.55 per hour after counting for expenses such as gas and vehicle maintenance, below many state minimum wages.
Fast food workers are also impacted by these labor practices. Delivery platforms often arrange for lower fees from restaurants to maintain cheaper prices. Many chains, however, save money by cutting labor costs, reducing staff hours, or maintaining low wages. For instance, a 2023 survey by Restaurant Business found that 47% of fast food operators adjusted staffing levels due to rising delivery platform fees.
Workers have since pushed back against these practices by forming advocacy groups. In 2022, California passed AB 257 – the Fast Food Accountability and Standards Recovery Act – aimed to establish minimum standards for wages, working hours and safety conditions for fast food employees. According to OpenSecrets, however, delivery companies and fast food chains have worked to crush similar measures in other states, spending over $220 million on campaigns to overturn or minimize worker protection laws.
Delivery platforms have set up extensive investments allocated toward lobbying in order to maintain their contentious business models. Data from Lobbying Disclosure Act filings shows that DoorDash spent $2.5 million on federal lobbying in 2023, focusing on labor classification laws and fee regulations. Their efforts are to maintain their classification of workers as independent contractors, which allows companies to save an estimated 30% in labor costs when compared to standard employment, according to the Harvard Business Review.
Furthermore, the narrative of convenience that delivery platforms often promote is contradicted when observing the apps’ mark-up in pricing. The costs for consumers are higher than in-store purchases by a significant margin. A 2023 analysis by MarketWatch found that meals ordered through delivery apps cost 20-40% more than those purchased directly from restaurants when including marked-up menu prices, delivery fees and service charges. For example, a $10 burger ordered in person could cost up to $14 through DoorDash when fees are included.
Additionally, tipping culture has become more aggressive. Many platforms encourage tips of 20% or more. The high tip combined with service fees often doubles the final price of an order, Business Insider reported. Consumers also face hidden costs like increased taxes on delivery orders, which further inflate the price. Concerns about accessibility and overcharging, particularly for low-income consumers who may struggle to keep up with the added costs, are a focus of controversy.
The rise of delivery platforms has allowed for significant changes in the fast food industry. Many chains have shifted their business to prioritize delivery demand, with some investing in “ghost kitchens” that prepare food for only online orders. A QSR Magazine report found that 35% of fast food operators have reduced dining space to prioritize delivery operations.
The shift in dining culture can come at the expense of fair practice and treatment for workers. Delivery platforms’ cost-cutting measures influence fast food chains to prioritize efficiency and profit over employee well-being. These changes challenge traditional labor practices and highlight the growing disparity between convenience for consumers and fair treatment for workers.
The influence of delivery platforms like DoorDash on the fast food industry extends beyond consumer convenience. These modern and innovative apps have shaped policies, labor practices yet their prioritization of profits often comes first and foremost.