Suggested Delivery Fees

      As a standard at Time to Eat Delivery, we generally recommend our clients use our template delivery fees while first starting their business. This template delivery fee is a constant charge, and then a percentage charge. This would look a little something like this:

Food / Restaurant Delivery Fees

$3.99 + 15% ($4.99 + 15% in wealthier areas)

Lunch / Workplace Delivery Fees

$1.99 + 15%

For restaurant delivery, this means that on top of whatever your future client ordered, they will first add 15% of whatever the order total is, and then the 3.99 delivery fee. ( For example, a $25 order would be $28.75 with a 15% service fee added on, and after adding the $3.99 fee, a $25 order would equal a cumulative $32.74 plus applicable taxes {$25 + $3.75 + $3.99 = $32.74}).

For workplace, we recommend the fee $1.99 + 15% because it is discounted from your other delivery fees, giving your customers an incentive to place orders individually. 

However, there are many different ways to structure your Delivery fees, and this can change depending on the area. For example, you might want to charge people more for each mile the driver travels. That can be configured, and you might add an extra $0.10 - $0.75 to each mile traveled. You could also configure fees for the amount of time it takes to get from one destination to another ( A good example of this is driving through a big city such as New York City or Los Angeles. ).

You might even want to use a tiered delivery fee structure where every threshold (based on mileage) brings an additional price. For example:

In the example above, our partner charges the customer the following:

Flat rate delivery fee (Pickup Fee)
$1.99 from 0-1 miles, $3.99 from 1-2 miles, and $4.99 from 2-15+ miles 

Per mile fee (+ Per Mile Fee)

$0.00 from 0-2 miles, $0.50 from 2-15 miles, and $0.75 for 15+ miles

Service fee

*The 15% fee is not configured in this location or represented in the image above

In this same example, our partner has set the following:

Minimum order (Min. Order)

$1.00 from 0-5 miles, $25 from 5-6 miles, $30 from 6-7 miles, $35 from 7-9 miles, $50 from 9-15 miles, and $60 for 15+ miles

Delivery time (Del. Time)

35 minutes from 0-2 miles, 40 minutes from 2-7 miles, 45 minutes from 7-8 miles, 50 minutes from 8-10 miles, 90 minutes from 10-15 miles, and 180 minutes for 15+ miles 

(Please note that this is not the only location delivery times are adjusted)

Driver pay (Driver Commiss.)

65% for all deliveries. 

Example - On a $25 order 5 miles away, the total delivery fees would be: 

Flat Rate Fee: $4.99

Per Mile Fee: $2.50

Percentage (commission on % calculated elsewhere): $3.75

Total Delivery Fees: $11.24
Total Driver Commission (65%): $7.32

We would recommend you check out what local competition is charging in your area, and think about real drive times in your area. Our recommendation is almost always to set your standard fee from $2.99 - $4.99 + anywhere from 10% - 15%. Playing with the numbers for driver commission will influence your decision as well, and in most cases, drivers expect to receive more for the longer distances they drive. These fees can always be changed and there is room to experiment. If you prefer your fees are more basic using only a flat rate delivery fee and percentage, that is certainly an option. Balancing driver pay with your delivery fees and how much your customers will pay for deliveries should always be the goal!