Can Dynamic Pricing Make Food Delivery More Profitable And Accessible?
September 06, 2023
Read Time
6 min
While this week's WSJ reported the trials and tribulations of DoorDashโs confusing messaging urging them to maintain price parity with their in-store menus, a key piece has been omitted from the discussionโ dynamic pricing. In recent years, startups like Sauce and JUICER have sprung up to help restaurants adopt demand-based pricing that seeks to improve the bottom line of their digital off-premise P&Ls. Last month, Sauce launched a self-serve product that allows restaurants to connect their delivery marketplace and aggregator accounts to start experimenting with its tool, which it claims can increase their delivery profit margins by 5-10%. Beyond improving delivery profitability, dynamic pricing has the potential to reduce food waste, throttle orders during peak demand times, and further optimize digital menu prices of in-venue kiosks and drive-thrus.
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