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Restaurants, delivery apps at odds over prices as demand surges


Girotra said delivery can be profitable in dense neighborhoods, where multiple orders can be delivered quickly and cheaply. But in sprawling suburbs, the cost of shuttling food gets too high.
“The economics don’t work out, so the delivery companies have to squeeze someone,” he said. “They have to squeeze the restaurants, the customers or the people working on these platforms.”
Figuring out how to make delivery profitable could be crucial in the coming years. Delivery was already growing before the pandemic, but it surged worldwide during lockdowns. Online orders for home delivery more than doubled in the U.S., Russia and Canada last year, and jumped around 30% in France, Germany and Spain, according to NPD Group, a market research company. ....

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