Food A restaurant owner made hundreds by ordering his own pizzas through Doordash after discovering the platform had created a listing selling its pizzas for cheap

00:45  19 may  2020
00:45  19 may  2020 Source:   businessinsider.com

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DoorDash announced Tuesday night that it was dropping its tipping policy, which had effectively meant customers’ tips were going to DoorDash rather than the person who delivered their meal. DoorDash had said the system kept workers’ pay consistent when customers tipped little or nothing.

a hand holding a cell phone: Ranjan Roy and his friend expected Doordash to catch onto them at any moment. Doordash never did. Eric Baradat/AFP via Getty Images © Eric Baradat/AFP via Getty Images Ranjan Roy and his friend expected Doordash to catch onto them at any moment. Doordash never did. Eric Baradat/AFP via Getty Images
  • Restaurant owners don't usually make money ordering from their own restaurants. But one pizza restaurant owner made hundreds doing so after discovering a Doordash loophole.
  • Financial services and media executive Ranjan Roy detailed in a newsletter post how he and a friend who owns pizza restaurants made money by using Doordash's system to order from the restaurants in 2019.
  • Doordash had started fulfilling delivery orders for the pizza restaurants without the owner's knowledge or consent and was selling pizzas for $16 apiece even though they cost $24 on the restaurants' actual menu.
  • Roy and his friend started ordering pizzas from his friend's restaurants through Doordash. By ordering $160 worth of dough-only pizzas, the friends were able to make $75 per order.
  • This apparent inefficiency in Doordash's system was actually part of a "demand test," where the platform fulfills delivery orders for a restaurant without its knowledge or taking a commission, and will present the sales data to the restaurant as a marketing pitch.
  • Visit Business Insider's homepage for more stories.

Restaurant owners usually don't make money by ordering food from their own restaurants. But one pizza restaurant owner made hundreds by doing just that.

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30 restaurant owners and managers across Canada told The Globe and Mail they’ve been placed on DoorDash without their consent. But after closing, Ms. Caulfied searched online. That’s when she found the listing on DoorDash , the online restaurant -delivery service – whose sales reps had been

The first online food order was a pizza from Pizza Hut in 1994 and since then consumers have shown a growing appetite for ordering via an app and eating at the comfort From my interviews, I found that a user’s journey to order food from DoorDash can be divided into two parts: Discovering a restaurant .

On Sunday, financial services and digital media executive Ranjan Roy published a widely-circulated post on Margins, the technology and business newsletter he runs, along with product manager Can Duruk. Roy, a former trader, revealed that he and a friend had discovered a loophole last year that had enabled them to profit by ordering from the friend's restaurants through Doordash.

Roy's unnamed friend contacted Roy one day in March 2019 asking if he'd heard of Doordash. The friend had been noticing an uptick in customers calling in and complaining about the pizzas they'd had delivered. But none of his restaurants offered delivery, either in-house or through third-party platforms.

The friend realized that Doordash had created a listing for his restaurants without his consent or knowledge, and was taking delivery orders for them. The friend also noticed that Doordash's listing charged $16 for pizzas that cost $24 on the restaurants' menu.

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Have you ever ordered online from a website or used one of the popular apps to help get food from your favorite local restaurant directly to your door? Many of these companies offer remote food order positions that let you put your customer service skills to use (without having to step foot in a

The company has filed a lawsuit against food delivery startup DoorDash , reports TMZ. In addition to the fact that In-N-Out never authorized DoorDash to deliver its food, the While DoorDash currently offers delivery from hundreds of California restaurants , In-N-Out no longer appears to be among them.

This is where Roy saw an opportunity. If Doordash charged $16 but paid $24 to the restaurant, couldn't the restaurant make money by ordering from itself?

"My friend, as a small business owner, insisted a valuable company worth billions could not possibly make mistakes like this. I insisted, with a company like Doordash, it was the opposite. So we wanted to just try it out," Roy told Business Insider.

Roy and his friend put that theory to the test. First, they used Doordash to order 10 pizzas, costing them $160.

"A Doordash call center then called into his restaurant and put in the order for those 10 pizzas. A Doordash driver showed up with a credit card and paid $240 for the pizzas," Roy wrote in the post. Since each pizza cost the friend around seven dollars to make, he ended up making only $10 from the order.

Then, Roy and his friend decided to see how far they could take this game. Again, they ordered 10 pizzas, this time for just dough with no toppings. With this new reduction in costs for the restaurant, Roy's friend made $75. Roy and his friend repeated this experiment several times over the course of the next few weeks, expecting Doordash to catch on at some point. Doordash never did.

Grubhub receipt sparks outrage as it reveals the company took a $666 cut from a pizza restaurant's $1042 in total orders

  Grubhub receipt sparks outrage as it reveals the company took a $666 cut from a pizza restaurant's $1042 in total orders "It is almost enough to pay for the food," Giuseppe Badalamenti, the owner of Chicago Pizza Boss, wrote in a Facebook post that caused a stir.But an Illinois pizzeria owner caused a stir by posting a Grubhub earnings statement that shows the delivery platform taking the lion's share of his delivery earnings. Giuseppe Badalamenti, who owns Chicago Pizza Boss in Westmont, Illinois, wrote, "Stop believing you are supporting your community by ordering from a 3rd party delivery company.

DoorDash has been the subject of some collective ire, after a Times report resurfaced the fact that One deliveryman showed the Times screenshots documenting a 23-minute wait at a restaurant for a Making it more fun, you have to make a decision about PostMates within seconds, or maybe take the

Diners who order from the apps may have no idea that the restaurant doesn’t physically exist. Then it approaches restaurants that use the app and encourages them to create a virtual restaurant to After he offered delivery through the apps in 2016, his business teetered. Two of his five pizzerias

"I had visions of building a network of restaurateurs all executing this strategy in tandem, all drinking from the Softbank teat before the money ran dry, but went back to work doing content strategy stuff," Roy wrote.

Roy and his friend later found out that this apparent inefficiency in Doordash's system was part of an advertising-related "demand test" with a non-partnered listing. In demand tests, Doordash takes a restaurant's data, creates a listing for the restaurant on its platform without the restaurant's knowledge, and starts fulfilling delivery orders for it without charging it a commission. At the end of the test, Doordash presents test data to the restaurant owner, and voilà! The restaurant is wooed by the potential for sales and signs up for Doordash's services.

Doordash did not respond to Business Insider's request for comment on this story.

Doordash's demand test didn't quite succeed in this case. And Roy emphasized that his and his friend's experiment only worked because Doordash wasn't taking commissions for the orders and had priced the pizzas incorrectly on its site. For any other restaurant owner looking to game the third-party delivery system, Roy's strategy is most likely off the table.

Read the original article on Business Insider

Pizza Hut is giving away half a million free pizzas to 2020 high school graduates. Here's how to claim a pie. .
The pizza chain is the latest brand to announce an offer to the class of 2020 as graduations and ceremonies get cancelled nationwide. Eligible graduates can claim their free pizza by signing into their Hut Rewards account on www.pizzahut.com/gradparty.Visit Business Insider's homepage for more stories.As graduations and commencement ceremonies get cancelled nationwide, brands are stepping up to provide some well needed comfort food. Pizza Hut is the latest brand to extend a special offer to the class of 2020.

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