Delivery aggregators boomed in popularity during the COVID pandemic and have continued to pick up steam.

Recent research found that 11 million consumers in the U.S. used these services in 2020, a 16 million user increase from the previous year. That comes out to 42% of Americans who say they’ve used at least one delivery aggregator app since the pandemic began.

Aggregators have allowed restaurants to reach more customers and focus on other aspects of their operations, but this convenience comes at a price. Many restaurants have complained about the steep fees charged by aggregators.

These fees can top 30% in some markets. Meanwhile, there’s also the issue of data access, as restaurants are often required to pay fees to view the details aggregators collect when customers make purchases.

In response to complaints about higher prices, a number of communities have passed legislation that puts limits on these costs.

Philadelphia, for example, last year approved a bill that would put a permanent 15% cap on fees. Proponents say this allows restaurants to keep more of their profits and rebuild their business in the pandemic’s wake, though aggregators say it would lead to higher costs for diners and lower wages for delivery drivers.

QSRs Feel the Pinch

Aggregators are also causing headaches for quick-service restaurant (QSR) chains, some of whom have begun streamlining their menus to stress efficiency or are simply protesting third-party delivery aggregators.

You may have seen Domino’s recent ad campaign promoting its initiative in which the pizza giant gave $50 gift cards to more than 2,600 customers for use at local restaurants around the country. Their message: if you can’t order from us, you can still eat local without going through a delivery app.