During the pandemic, homebound Americans more than doubled their food delivery orders, largely through third-party apps like Seamless and UberEats. COVID-19 lockdowns may have hastened the apps’ growth, but economists have tracked a dramatic uptick in the use of such platforms over the past five years.

But the convenience of these apps masks an inherently predatory nature, with crippling fees and dubious business practices that afflict restaurants and delivery drivers. Commission fees can account for about 15% to 30% of an order’s sales, and major companies including Grubhub have been sued for alleged sneaky practices to ramp up fees. Delivery drivers—who are considered independent contractors—often earn low wages for minimal protections from the companies. Reports have revealed creatively devised schemes, like Grubhub building fake restaurant websites, or DoorDash delivering knockoff food from ghost kitchens.

In this fraught environment, some restaurants are fighting back.

Owners and workers across the country, from Ohio to Nebraska to Washington, D.C., are now pooling their resources to launch alternative delivery models in their own communities that could potentially compete with the large apps. Many have emerged as cooperatives, where the eateries pay membership fees to fund operating costs and driver and dispatcher salaries. They in turn receive ownership responsibilities and a yearly share of profits.

Restaurant veterans in Lexington, Kentucky, for example, established a subscription-based model in summer 2020 with Delivery Co-op. Now, eight restaurants pay $300 per month to participate, while around 400 customers pay $25 a month to use the delivery service with no extra fees. Those funds go toward operating costs and over $20 per hour for drivers, who are full-time employees of the company. After three months on the job, drivers are eligible for medical insurance, and after one year, they qualify for profit-sharing options.

That model ensured that line cook Allen Pingay could pay his bills after being let go from his job at a Lexington steakhouse when COVID-19 hit. During peak delivery times at the height of winter, Pingay worked about 35 hours a week driving for Delivery Co-op.

“That really boosted me. I was able to get back on my feet, and actually see the light at the end of the tunnel,” he said. Since spring rolled around, Pingay now drives part time while exploring new cooking opportunities.

The customer subscription price tag may seem tough to swallow, especially with fewer than 10 restaurants now on the books, said Delivery Co-op director Aaron Withers, a former anthropologist and cook whose plans to open his own Lexington restaurant were dashed after COVID-19. But the average DoorDash user can pay $25 in fees over just two or three orders, and with Delivery Co-Op, they know that 100% of their order purchase goes back to the restaurant, he noted.

Read the full article about delivery co-ops by Vivienne Machi at YES! Magazine.