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The restriction may have made sense during a pandemic, but long term this really seems like something for markets, rather than governments, to solve
The fact that there are many apps competing for this businesses, but the costs to the restaurants are still so high, seems suspicious to me.
Reading the article I couldn't find anything - is there no minimum amount available? 15% of a $5 order obviously not enough to deliver it. Or is this more of a measure to move the fees onto the customer so they are more explicit?
How nonsensical to have this as a percentage. The underlying operational cost doesn't really depend on how much money you spent on the food. I don't see how delivery can be profitable on < $10 orders with a 15% cap.
Earlier quoted context omitted.
Delivery is expensive and network effects are valuable. Price-fixing is already illegal
Delivery platforms can stay solvent due to capital markets longer than restaurants and drivers they exploit. Regulation is required.
> Restaurants: Ok! / No, thanks.
How is this exploitation? Please.
How nonsensical to have this as a percentage. The underlying operational cost doesn't really depend on how much money you spent on the food. I don't see how delivery can be profitable on < $10 orders with a 15% cap.
Earlier quoted context omitted.
Not to mention that this just shifts costs to other fees like marketing.
I’d rather that and keep the restaurant afloat. If it’s too expensive, maybe the issue is DoorDash itself and they should lower their profit expectations. It’s easier now for people to actually dine out compared to during the height of the pandemic…
This is irrelevant. The delivery companies will just increase the prices of the items, or charge Service Fees, or charge Temporary Local Fees, or charge Taxes. UberEats does exactly this in each of those transactional labels already. And let's not forget the driver tip which often defaults to a percentage of the sum() of the above items.
> A local regulation has temporarily capped the fees that we may charge local restaurants. To continue to offer you convenient delivery while ensuring that Dashers are active and earning, you will now see an additional fee that we are charging for local orders in this area.
Mission accomplished, everyone!
Earlier quoted context omitted.
Delivery platforms can stay solvent due to capital markets longer than restaurants and drivers they exploit. Regulation is required.
> Food delivery startups: Hey we'll handle delivery for you for a fee, sounds good? > Restaurants: Ok! / No, thanks. How is this exploitation? Please.
https://ilsr.org/wp-content/uploads/2021/05/ILSR_SpecialDeli...
https://thecounter.org/grubhub-domain-purchases-thousands-sh...
https://www.eater.com/22228352/convenience-of-delivery-apps-...
https://www.economicliberties.us/our-work/rescuing-restauran...
https://www.nytimes.com/2020/06/09/technology/delivery-apps-...
How nonsensical to have this as a percentage. The underlying operational cost doesn't really depend on how much money you spent on the food. I don't see how delivery can be profitable on < $10 orders with a 15% cap.