![]() Depending on the size of the order, that under $8 figure may or may not be higher than what Grubhub et al. According to the company release, “the cost to deliver within a five-mile radius is under $8, versus a percent of sales.” More specific numbers weren’t given, and that’s where the benefits get a little cloudy. Restaurants will also still pay fees per transaction on orders, but via Toast, those are based on a flat rate rather than a percentage of each order. Restaurants can still access third-party drivers, only through a partnership with Toast, which would process the orders, not Grubhub or DoorDash or Uber. It seems, then, that Toast is acting as more of a middleman between the restaurant and the driver fleet. Toast Delivery Services powers technology to dispatch local drivers from 3rd party network partners to fulfill all orders.” Who those third-party networks are was left unsaid. A Toast spokesperson told me over email that, “Drivers do not work directly for Toast. To be clear, though, Toast is not supplying those drivers itself. And, as we discuss frequently, the commission fees for those things can be 30 percent per each individual transaction - a point that’s rightly causing a lot of uproar right now as restaurant struggle to stay alive in the face of dining room shutdowns. While subtracting any one of those can lessen a commission fee, most restaurants need the whole stack. Typically, restaurants pay higher commission fees to third-party delivery services when they need access to the entire delivery stack: the marketing, the technical ability to process orders, and the drivers themselves. That’s a big point, since an expensive aspect of any partnership with a third-party delivery service is the cost of paying drivers. To do that, Toast will “enable restaurants of all sizes with an on-demand network of local drivers”. ![]() Today, the company announced the launch of Toast Delivery Services, which will, according to a company press release “eliminate high commission fees” from third-party services like DoorDash or Grubhub. ![]() Once a simple POS system for restaurants, Toast has over the years morphed into the Swiss Army Knife of restaurant tech platforms, offering everything from payment processing hardware to back-of-house payroll software.
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