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Food Fee Fiasco

Consumer Skills

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1. What is one of the benefits restaurants get from using food delivery apps?

  1. Not having to hire a delivery person on staff
  2. Limited customer reach
  3. Decreased revenue growth
  4. More in-person customers

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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1. What is one of the benefits restaurants get from using food delivery apps?

  • Not having to hire a delivery person on staff
  • Limited customer reach
  • Decreased revenue growth
  • More in-person customers

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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2. How do food delivery apps typically generate revenue?

a) Through advertisements on the app interface

b) By charging customers a monthly subscription fee

c) By taking a commission from restaurant orders

d) Through government subsidies for promoting local businesses

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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2. How do food delivery apps typically generate revenue?

a) Through advertisements on the app interface

b) By charging customers a monthly subscription fee

c) By taking a commission from restaurant orders

d) Through government subsidies for promoting local businesses

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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3. True or false? In a Washington Post experiment, three food delivery apps paid different amounts to one restaurant for the same meal.

a) True

b) False

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3. True or false? In a Washington Post experiment, three food delivery apps paid different amounts to one restaurant for the same meal.

a) True

b) False

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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4. How have customers reacted to the changing fees associated with food delivery apps?

  1. Acceptance and willingness to pay higher prices
  2. Outrage and frustration over unaffordable costs
  3. Indifference due to lack of awareness
  4. Support for increased fees to improve driver pay

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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4. How have customers reacted to the changing fees associated with food delivery apps?

  • Acceptance and willingness to pay higher prices
  • Outrage and frustration over unaffordable costs
  • Indifference due to lack of awareness
  • Support for increased fees to improve driver pay

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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5. What advantage do major food delivery apps have that enables them to charge high fees?

a) Government subsidies for app development

b) Access to low-cost delivery options

c) Market consolidation and proprietary technology

d) Cooperation with local restaurants to reduce costs

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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5. What advantage do major food delivery apps have that enables them to charge high fees?

a) Government subsidies for app development

b) Access to low-cost delivery options

c) Market consolidation and proprietary technology

d) Cooperation with local restaurants to reduce costs

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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You’ve completed the exercise, now it’s time to learn

more about the current event:

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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Discussion Prompt:

Do you use food delivery apps? If so, have you noticed higher costs or extra fees?

If not, would you use these apps? Why or why not?

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE

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Extend Your Learning

Three Relevant Resources from NGPF:

  • Comparison Shopping (Lesson)
  • INTERACTIVE: Can You Make it as an Uber Driver? (Arcade game)
  • What percent of U.S. workers engage in gig, freelance, or temp work? (Question of the

Day)

References:

  • How did the cost of food delivery get so high? (Vox)
  • When Delivery Costs More Than the Food You Ordered (Washington Post)
  • The Delivery App Dilemma (Forbes)
  • Guide to Buy Now, Pay Later (emarketer.com)
  • Food delivery fees add up. Who keeps the money from all those surcharges? (The Hill)

FOOD FEE FIASCO | APRIL 12, 2024 EDITION | NEXT GEN PERSONAL FINANCE