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Portland approves 10% cap on fees that food delivery apps can charge restaurants

oregonlive.com

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Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants

#401

Post by brokencode »

valuearb wrote: post #318
ethbro wrote: post #310

Earlier quoted context omitted.

Because sometimes the net result of individual optimization (predatory food delivery apps) is social deoptimization (local restaurants close). And for the same reason that we don't allow health insurance to charge people different rates on the basis of their genetic profiles, the exercise of government prerogative to optimize for the greater good, on behalf of all, is apt here. Whether or not this particular approach…

We don't even let health insurance to charge people different rates based on pre-existing conditions anymore, which is what drove health insurance premiums through the roof.

The whole reason for health insurance in the first place is for healthy, wealthy, or young people to pay for unhealthy, poor, or old people.

That’s the whole reason for any kind of insurance. It’s a mechanism for lucky people to pay the costs of unlucky people. And even lucky people pay for it it because you never know how your luck will change.

If you take your idea for a pricing model to the extreme, everybody pays pretty much what they need to cover their own costs, which could be extremely low or extremely high. This is no different than if nobody had insurance at all.

Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants

#402

Post by nitrogen »

Reedx wrote: post #305
maltelandwehr wrote: post #71

Next week there will be complaints that food delivery services are no longer catering to certain areas. Instead of accepting that it is just not profitable for them, journalists will label it as backslash or an act of punishment. Same thing happened in others states/cities that implemented similar rules. The winners are people living in central areas of the city with lots of restaurants. The losers are the poorer out…

Exactly what happened in SF. Uber Eats stopped delivering to Treasure Island as a result: "The Order limits our ability to cover operation costs, so we have had to revise the areas Uber Eats can deliver to in the city. Unfortunately, this means we cannot continue to serve customers in Treasure Island. The Mayor’s Emergency Order limits the commissions we charge restaurants for access to our platform and delivery serv…

To some extent this seems like grandstanding. They charge a delivery fee. If the delivery fee doesn't cover delivery, then charge a higher delivery fee. That comes from the customer, not the restaurant.

Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants

#403

Post by pizza »

obibring wrote: post #39

This is the right move - local restaurants are hurting and, sadly, the internet is a place where big corps with large budgets have leverage over passionate little guys working their butts off. For those who want to help, I built a chrome extension similar to Honey that shows a local restaurant's direct ordering website as you're about to order from that restaurant thru a third party service. If direct ordering isn't…

Is there a Firefox version coming soon?

Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants

#404

Post by raz32dust »

andrewla wrote: post #194
inkaudio wrote: post #99

This is a regulatory response to Silicon Valley’s implementation of predatory pricing. Let me explain: Predatory pricing is defined as “the pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market.” For silicon valley startups like Doordash and Grubhub this is accomplished by acquiring customers at a significant loss in ways that may often seem idiotic. e…

The problem is that this response is in the wrong direction. By forcing prices lower, we guarantee that only over-capitalized predatory businesses can compete in the space. The problem is that consumer advocacy and anti-monopoly are practically the opposite thing. The end result of government action here should be short-term higher prices to the consumer, that reflect the actual cost of operations, rather than lower…

> "consumer advocacy and anti-monopoly are practically the opposite thing."

Only true in the short term. Long term, monopoly prevents competition and is bad for consumers.

Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants

#405

Post by raz32dust »

Reedx wrote: post #305
maltelandwehr wrote: post #71

Next week there will be complaints that food delivery services are no longer catering to certain areas. Instead of accepting that it is just not profitable for them, journalists will label it as backslash or an act of punishment. Same thing happened in others states/cities that implemented similar rules. The winners are people living in central areas of the city with lots of restaurants. The losers are the poorer out…

Exactly what happened in SF. Uber Eats stopped delivering to Treasure Island as a result: "The Order limits our ability to cover operation costs, so we have had to revise the areas Uber Eats can deliver to in the city. Unfortunately, this means we cannot continue to serve customers in Treasure Island. The Mayor’s Emergency Order limits the commissions we charge restaurants for access to our platform and delivery serv…

That makes no sense to me. Why can't they charge people ordering from Treasure island higher?

Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants

#406

Post by missedthecue »

asdff wrote: post #341
austhrow743 wrote: post #221

Earlier quoted context omitted.

5 minute walk then 20 minute wait then 5 minute walk back. When you're earning $50+ an hour, which many in cities are easily clearing, it starts to make a lot of sense to pay someone else to do your waiting for you.

Takeout is 15-20 minutes, delivery is 40-60. Call ahead, and the food will be ready by the time you get yourself together, walk out the door, and arrive at the restaurant.

Right, but you can be doing other things during those 40-60 minutes

Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants

#407

Post by SheinhardtWigCo »

boring_twenties wrote: post #397
carlmr wrote: post #218

Earlier quoted context omitted.

How about you have to charge the fee to the customer. The issue isn't taking 25%. It's taking 25% from the restaurant, which means they don't have a profit margin left. If for example the pizza is $10 at the restaurant, make that $12.50 with delivery and $10 without. That way the consumer can decide themselves if they want to pay the added amount for delivery, or if they'd rather walk/drive. Right now they charge you…

Doordash seems to have higher menu prices than the restaurants' own websites, so unless I'm missing something, it seems the restaurant has the ability to choose to recoup those fees from the customer if they want to. What gets me is that Doordash is triple dipping here. There's the fee to the restaurant, which may or may not translate to higher menu item prices. There's the fixed $2-5 delivery fee which is pretty obv…

There's also the 15-20% tip, of which the restaurant staff aren't getting a cent.

Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants

#408

Post by colinmhayes »

austhrow743 wrote: post #221
colinmhayes wrote: post #123

Earlier quoted context omitted.

I don't understand why people in central areas of the city order delivery. There are 10 amazing restaurants within easy walking distance of me, why order delivery when I can walk for 5 minutes instead?

5 minute walk then 20 minute wait then 5 minute walk back. When you're earning $50+ an hour, which many in cities are easily clearing, it starts to make a lot of sense to pay someone else to do your waiting for you.

Walking around is usually one of the highlights of my day. Walking down the block isn't a chore, it's a pleasure. Delivery is cold by the time I get it half the time, I want stuff done well I've got to do it myself.

Re: Portland approves 10% cap on fees that food delivery apps can charge restaurants

#409

Post by missedthecue »

chillwaves wrote: post #383
bluehatbrit wrote: post #214

Earlier quoted context omitted.

We're moving from an age of consumers going to the good/service and to the good/service going to the consumer. In particular younger generations see delivery as a norm. It's less about being lazy or having high expectations and more a case of it being baked into the culture of younger generations now. I work for a takewaway / food delivery company and it's facinating listening to what our customers are saying. I hear…

Sounds incredibly wasteful, no matter the economics involved.

Because those parents are bearing the costs of their childrens eating habits, rather than the kids feeling the cost.
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