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Delivery apps and websites highlight and promote restaurants with "free" delivery. Anecdotally, people like feeling like they are getting a good deal. The "free delivery" that is included in food pricing is more enticing than cheaper food with a $9 delivery.

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Maybe; as a gimmick. But as you become familiar with restaurants in the area instead of just trying them out for the first time, you'll start to develop affinities. Maybe not everyone, maybe not every time, but if the restaurants doing the free delivery thing are losing money on every sale, eventually this achieves an equilibrium (so long as the market is not being artificially pumped by capital injections).

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