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Slowdown in food deliveries pose challenges for restaurants and drivers

Posted at 5:29 PM, Apr 27, 2022

As positive COVID-19 cases have dropped, the demand for food delivery services is dwindling as people return to dining in.

New data shows that back in November, shares of food delivery app DoorDash hit record highs. Since then, those stock shares have plummeted by over 60%.

Santa Maria restaurant D&A Hawaiian BBQ says delivery and takeout are key aspects of their business that they had to adjust to stay afloat during the pandemic.

"Even though the overall mobile market is down, we keep spending more on the advertisement." said restaurant owner Jeff Chen.

He says he is hopeful that when people come across ads for his restaurant, they will be more inclined to continue placing orders for delivery.

A local DoorDash driver we spoke with says she has taken notice of the downward trend in food deliveries, too.

"During COVID, it was busy every day, all day," remembers Dawnette Cress. "I think as COVID has not been as much of an issue, there has been a bit of a slowdown for sure."

Experts also say the recent surges in inflation, as well as the rise in fuel costs, have deterred some Americans from spending a bit more to have their food delivered.