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Yelp Is Replacing Restaurants’ Phone Numbers So Grubhub Can Take a Cut (2019)

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Re: Yelp Is Replacing Restaurants’ Phone Numbers So Grubhub Can Take a Cut (2019)

#21

Earlier quoted context omitted.

> that don't end in a sale. i would bet 99%+ of all calls to restaurants from grubhub end in a sale, thus making this law meaningless. edit: why did i get downvoted for this? it adds to the discussion and it doesn't break any of HN's rule. are people just not happy about it or something? wtf.

Have any data to back up that claim?

Probably not. That’s what makes it a bet. But if you’ve ever worked in a restaurant, it certainly seems logical.

Re: Yelp Is Replacing Restaurants’ Phone Numbers So Grubhub Can Take a Cut (2019)

#22

Earlier quoted context omitted.

The problem is yelp has more money for lawyers than a low-margin local restaurant. That's why this should be treated as a criminal matter, with state prosecutors taking down Yelp.

Could this be considered a RICO violation? Is this not bribery?

Yeah, the feds will get right on that.

Ob Lebowski: “Leads, yeah sure. I'll uh, just check with the boys down at the Crime Lab. They uh, got uh, four more detectives working on the case. They've got us working in shifts.”

Re: Yelp Is Replacing Restaurants’ Phone Numbers So Grubhub Can Take a Cut (2019)

#23

Very cool update at the top of the article "NEW: As of May 14, 2020, New York City has passed a bill to ban the practice of third parties charging a fee for phone calls that don't end in a sale. You can read about that here." Glad to see reporting working successfully and highlighting abusive practices which then leads to changes in the law.

> that don't end in a sale. i would bet 99%+ of all calls to restaurants from grubhub end in a sale, thus making this law meaningless. edit: why did i get downvoted for this? it adds to the discussion and it doesn't break any of HN's rule. are people just not happy about it or something? wtf.

99%+?

I can give you a case in point: we just tried to order Thai on Saturday from one of our favorite restaurants. They were short staffed in the kitchen and the wait time was over an hour... so we didn't order. I'm willing to bet a ton of other people did the same thing. Why should the Thai place have to PAY for people that declined to order?

Re: Yelp Is Replacing Restaurants’ Phone Numbers So Grubhub Can Take a Cut (2019)

#24
post #3

"The question is, is there a path to independence?” Stoppelman said. “Distribution is always the centerpiece. If you create a great product or service, how do you get it in the hands of the people? The problem with Big Tech is they control the distribution channels. Distribution is the key. If [company x] is the starting place for all of the people...to the extent they get in front of consumers and block them from fi…

I have personally never seen much value in Yelp. Most people use Google as a starting point when searching anything, and the Yelp page that is returned is not very helpful to me. At best, it contains menus, pictures, hours, phone number, and reviews. At worst, it has none of those and is effectively an ad for the Yelp app. Either way, Google shows me all of that before I click anything else.

Google absolutely tries to keep me on Google, but at least they have a "Website" button that takes me to a different domain that was set up by the restaurant itself.

Re: Yelp Is Replacing Restaurants’ Phone Numbers So Grubhub Can Take a Cut (2019)

#26

Why is Yelp not being charged with fraud?

Restaurants are terrified to sue Yelp because of the severe power differential between the "phone book" directory and themselves, especially given the long-standing rumors (whether true or not, the perception exists) that Yelp punishes anyone that complains by promoting bad reviews to their page.

Re: Yelp Is Replacing Restaurants’ Phone Numbers So Grubhub Can Take a Cut (2019)

#27

Earlier quoted context omitted.

Could this be considered a RICO violation? Is this not bribery?

Yeah, the feds will get right on that. Ob Lebowski: “Leads, yeah sure. I'll uh, just check with the boys down at the Crime Lab. They uh, got uh, four more detectives working on the case. They've got us working in shifts.”

Civil RICO does not need the feds.

Re: Yelp Is Replacing Restaurants’ Phone Numbers So Grubhub Can Take a Cut (2019)

#28
post #5

Yelp executives belong in prison for fraud.

Where is the fraud? The restaurant must have agreed to the commission Yelp is asking for if the restaurant owes it to Yelp.

Yelp, to restaurants: we get a commission on Grubhub orders.

Restaurants, begrudgingly: fine

———

Yelp, to users: click here to order through Grubhub

Yelp, to customers: or just use the restaurant’s phone number to order yourself. [shows you a number that isn’t the restaurant’s]

——

Yelp is effectively telling users that a number belongs to the restaurant when it doesn’t. I’m sure yelp’s lawyers would say they aren’t actually telling any users that the restaurant’s number belongs to the restaurant, but come on. It’s clear that the intent is to mislead.

Re: Yelp Is Replacing Restaurants’ Phone Numbers So Grubhub Can Take a Cut (2019)

#29
I see a lot of people saying this must be illegal, and the reason Yelp hasn't been sued is because restaurant owners can't afford legal fees.

Isn't this the purpose of class action lawsuits? If Yelp is actually doing something illegal here, certainly, there's enough money to hire great counsel to represent all restaurant owners who are affected by this policy change.

Re: Yelp Is Replacing Restaurants’ Phone Numbers So Grubhub Can Take a Cut (2019)

#30
post #10

Earlier quoted context omitted.

Seems obvious that a company could sue them for fraud by misrepresenting a phone number. I really don’t understand how or why this could be legal.

The problem is yelp has more money for lawyers than a low-margin local restaurant. That's why this should be treated as a criminal matter, with state prosecutors taking down Yelp.

> The problem is yelp has more money for lawyers than a low-margin local restaurant.

Class-action lawsuits were created to solve this exact problem?

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