Portland approves 10% cap on fees that food delivery apps can charge restaurants
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Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants
#2Seems like a solid move, given the capture of the market by the food delivery apps, and their shady business practices (like the thread from a while ago where a delivery service was making fake websites for restaurants, without their knowledge or consent).
Why have this expire post COVID though?
Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants
#3Seems like a solid move, given the capture of the market by the food delivery apps, and their shady business practices (like the thread from a while ago where a delivery service was making fake websites for restaurants, without their knowledge or consent). Why have this expire post COVID though?
I believe this is a power granted by the state of emergency, when that ends, the power to mandate it ends. At that point they'd have to pursue other legislative avenues.
Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants
#4considering the food delivery apps don’t make money, I don’t see how this will help anything
Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants
#5A lot of numbers get thrown around in these discussions. Is it accurate to say that, even on the often quoted 30% fee, that the apps are running a loss?
Is there any chance of running profitably with this cap? The cost for delivery is already very high relative to the price of the food.
Not opposed to it personally.
Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants
#6Seems like a solid move, given the capture of the market by the food delivery apps, and their shady business practices (like the thread from a while ago where a delivery service was making fake websites for restaurants, without their knowledge or consent). Why have this expire post COVID though?
>Seems like a solid move
Are any of these food delivery companies even making money? What will capping their fees do except make them lose even more?
Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants
#7Let's see if they roll this into their prices
Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants
#8Seems like a solid move, given the capture of the market by the food delivery apps, and their shady business practices (like the thread from a while ago where a delivery service was making fake websites for restaurants, without their knowledge or consent). Why have this expire post COVID though?
On paper it looks good, and given the players in the arena, there’s not much competition, especially since there’s a high bar of entry for new competition.
Perhaps the idea behind not imposing such regulations is a free market argument, in which the most efficient price won’t be selected for, thereby not producing the optimal supply/demand.
I would argue against this point that we would be assuming perfect competition, and given the anti competitive behavior of gig economy companies in this space (such as buying restaurant domain names, making fake websites with phone numbers they own to trick people into thinking they’re ordering directly) and lack of competition, this seems appropriate for now.
Though the policy timeline should be extended, I don’t believe it should be indefinite. When the aforementioned issues are resolved, I’d agree with the free market side.
In China, if I recall correctly, they have a food economy such that it’s cheaper to order take out, and have the food delivered, than actually cooking. We have inefficiencies In the infrastructure, less population density, and lack of competition that prevents us being in a similar boat.
Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants
#9Seems like a solid move, given the capture of the market by the food delivery apps, and their shady business practices (like the thread from a while ago where a delivery service was making fake websites for restaurants, without their knowledge or consent). Why have this expire post COVID though?
... because we generally think the free market is a good idea?
Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants
#10Seems like a solid move, given the capture of the market by the food delivery apps, and their shady business practices (like the thread from a while ago where a delivery service was making fake websites for restaurants, without their knowledge or consent). Why have this expire post COVID though?
> Seems like a solid move Are any of these food delivery companies even making money? What will capping their fees do except make them lose even more?
I'm just reading more that this business model was never going to work the way it is right now given the thin margins in restaurants and the cost of delivery drivers.
With automation, it might change the economics. I think that's what everyone's betting on. I think the Ubers and all are just trying their damndest to not completely drown until driver automation reaches a certain stage. They obviously can't openly say that because there would be revolts from their drivers.