Quick map: the different lines on a delivery receipt
Receipts mix several different charges. Learn the names so you can ask exactly who keeps what.
- Delivery fee — charged to the customer; may be routed to drivers, the platform, or split between them.
- Service fee (or order fee) — often retained by the platform to cover operations and technology.
- Small order fee — surcharge when an order is below a threshold; usually platform revenue.
- Commission — deducted from the restaurant payout; a percentage of the order subtotal per the restaurant contract.
- Tips — intended for drivers; handling of tips varies by platform and region.
- Surge or busy-area fees — dynamic charges when demand outstrips supply; distribution varies.
How money actually flows — the main buckets
There are five practical recipients of the fees. When you ask a platform or restaurant for a breakdown, these are the items you should hear about.
- Driver pay — base pay, per-mile or per-minute guarantees, and tips. Platforms may top up or pool pay for fairness.
- Restaurant payout — the amount the restaurant receives after commissions and any order adjustments.
- Platform operating costs — app development, payments infrastructure, customer support, fraud prevention and legal compliance.
- Marketing and customer acquisition — promotions, discounts, and sponsored placement that bring orders to the platform and to restaurant pages.
- Insurance, refunds and risk reserves — liability insurance, refunds, chargebacks and funds held against disputes.
Concrete examples of what fees pay for
Say you see a $4 delivery fee and a $2 service fee on a customer’s order. How is that $6 used? A platform might:
- Pay the driver a portion of the delivery fee plus whatever the platform adds (driver pay).
- Keep part of the service fee to fund customer support and tech operations.
- Use some revenue for marketing and to subsidize order discounts.
- Reserve a small amount for refunds, fraud and insurance costs.
That example is illustrative — the exact split is determined by the platform contract and local rules. Don’t accept vague answers like "it varies" without documentation.
Trade-offs: where "it depends" matters and why restaurants care
Understanding fees isn’t just bookkeeping. The trade-offs change operating decisions.
- Transparency vs simplicity: Platforms that show every line item are clearer but can expose restaurants to customer complaints about high commissions.
- Lower customer fee vs driver income: Lower visible delivery fees can mean platforms subsidize the difference, or drivers earn more from tips — the distribution affects driver availability and speed.
- Higher commission vs marketing reach: Paying more to the platform can buy better placement and promotions; that increases orders but reduces per-order profit.
- Menu pricing vs customer satisfaction: Restaurants can raise menu prices on delivery to cover commissions, but higher prices reduce conversion.
Regulatory differences matter: some cities require disclosure or cap commissions — ask your local regulators or legal counsel for specifics when negotiating contracts.
What to ask right now — exact sentences and a short checklist
Use these exact lines when you call a platform rep or review a contract.
- To the platform sales rep: "Please show me the contract clause that defines the commission rate and any per-order fees; which line items are deducted from my payout?"
- About driver pay: "What is the driver pay model in my ZIP code? List base pay, per-mile or per-minute components, and whether tips are passed through immediately."
- On customer-facing fees: "Which fees on the customer receipt are routed to drivers, which to the platform, and which to the restaurant? Please name the fee line(s)."
- Marketing/promotions: "If I enroll in promoted placement, what is the fee structure and the metric you use to show ROI (cost per incremental order)?"
- Testing and transparency: "Can I run a sample order and receive an itemized payout report for that order?"
Quick operational checklist to act on today:
- Pull your latest payout statement and match it to three sample orders.
- Run one test order as a customer and save the receipt.
- Ask the five questions above and keep the answers in writing.
- Decide whether to adjust menu prices for delivery items or add a delivery surcharge; model profit impact per menu item.
What a good answer sounds like — and what a bad answer sounds like
When you ask platforms or your staff, listen for clarity and documentation.
- Good platform answer — "Your contract lists a 20% commission on pre-tax subtotal; the customer pays a $3 delivery fee, split with drivers per our driver pay policy (here's the policy PDF). Tips go directly to drivers and are visible on payouts." That answer cites a contract clause and a policy document.
- Bad platform answer — "We don’t disclose the split" or "Everything is handled internally." If you get this, insist on written terms before you accept the integration.
- Good restaurant/staff answer to a customer — "The app charges a delivery fee that helps cover driver and platform costs; our menu prices include a commission the platform charges us." It’s short, honest and directs customers to the platform for fee details.
- Bad restaurant/staff answer — "We don’t know where the fee goes" or deflecting blame without offering to follow up — that fuels distrust.
Knowing how fees are allocated lets you negotiate, set menu strategy, and explain charges to customers. Get contract language, test orders, and written driver-pay policies — then decide whether the reach the platform offers is worth the cut.