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'Inflation Hitting Hard': Customers Floored by $1,000 (USD$854) Small Order Fee on GrabFood
AsiaOne ^ | NOVEMBER 04, 2022 | Ching Shi Jie

Posted on 11/06/2022 4:42:42 PM PST by nickcarraway

All she wanted was a burger and some nuggets from McDonald's.

But imagine this woman's shock when her GrabFood order from the fast food restaurant's Yishun outlet came up to an excess of $1,203.

"Laugh my a** out. What?" TikTok user Cowsmoker said in a video shared on Friday (Nov 4), while showing that her small order fee for her order was around $1,185.

A small order fee applies to orders less than the minimum order value set by the restaurant, according to Grab.

Fortunately, Cowsmoker chose to see the funnier side to this incident.

"They think I what? Elon Musk is it," she quipped.

It's safe to say she didn't proceed with that order.

However, Cowsmoker is not the only one hit by this ridiculous fee as a couple of GrabFood customers also took to social media today to share their disbelief over their exorbitant small order fee.

Some of the other eateries affected include Texas Chicken and A-One Claypot House.

In the comments, several netizens were baffled by the "not so small" small order fee.

"Inflation hitting hard," a netizen said, while others shared their similar experiences being quoted $1,000 for the small order fee.

PHOTO: Screengrab/Instagram/Sgfollowsall AsiaOne has contacted Grab for comment.

On Thursday (Nov 4), an eagle-eyed GrabFood customer shared on Reddit how the food delivery platform has increased the minimum order for fast food outlets and several restaurants from $8 to $12.

Reaction to this "public service announcement" was mixed - several netizens lamented how everything is becoming more expensive, while others pointed out that it's the price to pay for convenience.


TOPICS: Business/Economy; Food; Local News
KEYWORDS: ation; delivery; deliveryservice; fastfood; fastfoodoutlets; grabfood; inf; singapore

What would the fee been is she orfdered enough food to get over the minimum order?

1 posted on 11/06/2022 4:42:42 PM PST by nickcarraway
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To: nickcarraway

Apps...what will they think of next?


2 posted on 11/06/2022 4:49:21 PM PST by who knows what evil? (Yehovah saved more animals than people on the ark...siameserescue.org)
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To: nickcarraway
The third party food delivery business model seems a little shaky to me. How do they become profitable without charging exorbitant fees?

For example, let's say I order $30 worth of Chinese food from a restaurant five miles from me. I go into my Grubhub app to have it delivered. Grubhub tacks on a 10% fee ($3) and I tip the driver who brings it to me $6 (20%).

My $30 order now cost me $39 and I might be okay with that as I never had to leave the house. But how is this worthwhile to Grubhub and the driver? That order likely took the driver 15 minutes to pick up and deliver for a $6 tip. Grubhub gets $3 in revenue, a portion of which goes to the driver.

I'm just not seeing anybody getting rich here.

3 posted on 11/06/2022 5:01:16 PM PST by SamAdams76 (4,479,054 active users on Truth Social)
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To: SamAdams76

I am not sure, but I do think the app company doesn’t pay the whole $30 a regular customer would. It’s got to be harder with gas like it is now. I had one or two Uber driver tell me they hated Uber eats.


4 posted on 11/06/2022 5:06:12 PM PST by nickcarraway
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To: SamAdams76

Grubhub (or, Doordash, etc.) is making their big money on the info they have, on you, gathered in their app.

There’s money to be made on your eating/shopping habits.


5 posted on 11/06/2022 5:06:45 PM PST by Jane Long (What we were told was a “conspiracy theory” in 2020 is now fact. 🙏🏻 Ps 33:12)
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To: nickcarraway

Learn to cook


6 posted on 11/06/2022 5:19:38 PM PST by bigbob (z)
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To: Jane Long
Nope. They're making their biggest money on fees to both customers AND restaurants. From their own website: "How much does Grubhub charge restaurants? For orders you receive through the Grubhub app or on Grubhub.com, you pay Grubhub a marketing commission to cover the cost of listing and promoting your restaurant. This ranges from 5% to 20% of each order, depending on the Grubhub pricing package you choose."

I remember when we were under lockdown and a lot of smaller businesses were trying to stay in business by using Grubhub and the like, but ultimately lost even more money because of the fees.
7 posted on 11/06/2022 5:19:51 PM PST by Retrofitted
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To: nickcarraway
Dread to think what Texas Chicken is in a foreign country.

Keith’s Texas BBQ in Dorchester, MA was bad enough…boiled meat on a hoagie bun.

8 posted on 11/06/2022 5:52:54 PM PST by Deaf Smith (When a Texan takes his chances, chances will be taken that's for sure.)
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To: Retrofitted

A pizza chain, Papa John’s I think, did some commercials where they were handing out dollars off coupons for local, Mom and Pop eateries because of the money those places were losing to the delivery services.
A chain can manage those fees, a Mom and Pop not so much.


9 posted on 11/06/2022 5:56:08 PM PST by oldvirginian (When I was a kid I wanted to be older…this is not what I expected)
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To: Retrofitted

Check out how much info typical apps gather about users.

Selling of that info is BIG biz.

YOU are the product.

Take care.


10 posted on 11/06/2022 6:06:03 PM PST by Jane Long (What we were told was a “conspiracy theory” in 2020 is now fact. 🙏🏻 Ps 33:12)
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