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California law bans delivery apps from listing a restaurant without an agreement

leginfo.legislature.ca.gov

261–270 of 663 posts

Re: California law bans delivery apps from listing a restaurant without an agreement

#261

Earlier quoted context omitted.

Careful there... Apple (or any manufacturer) could say the same thing about Ebay. Any sports team or band could say it about Stubhub. Nike could say it about StockX.

I think we can carve out an exception specifically for food and food services. Why? Because of the extremely limited shelf life of hot food. That’s what sets it apart from your other examples.

Actually, Stubhub is a little complicated in that, for example, sports season tickets can have conditions attached to them. Stubhub has lost a couple of court cases around that.

Re: California law bans delivery apps from listing a restaurant without an agreement

#262

Earlier quoted context omitted.

Careful there... Apple (or any manufacturer) could say the same thing about Ebay. Any sports team or band could say it about Stubhub. Nike could say it about StockX.

I think we can carve out an exception specifically for food and food services. Why? Because of the extremely limited shelf life of hot food. That’s what sets it apart from your other examples.

The law does not set any health standards on food delivery platforms.

Restaurants will have to sign up with each delivery platform, and/or delivery platforms will have to sign up each restaurant. Either way, the net effect will be to protect the extant food delivery platforms from new competition.

Re: California law bans delivery apps from listing a restaurant without an agreement

#263
F that! Last night I wanted w bottle of alcohol for new years celebration. I already had a few drinks so I didn't want to drive. Unfortunately no delivery service had an agreement with any local liquor stores.

As long as a delivery service doesn't pose as the store itself, there should be no issues. The laws in this country are a out of control.

Re: California law bans delivery apps from listing a restaurant without an agreement

#264
post #187
post #15

always entertaining how regulation unintentionally acts to increase barriers to entry for incumbents. in this case closing the barn doors almost a decade after the horse left the stable. you couldn't pay politicians enough for the favors they perform in earnest. edit:to elaborate, the growth hacks of the likes of Doordash and Postmates doing exactly this got them their start, now it will be illegal to compete with th…

Exactly. If I'm in California and I want to challenge the incumbents with my cool new idea about how to do delivery better, now I can't. There's no way to effectively scale a sales team in the beginning to reach out to all these restaurants. And as you said, all the successful incumbent players already used this strategy to become big, now this won't materially affect them. They already have sales agreements in place…

The incumbents spent a lot of investor money to get where they are today.

DoorDash, for example, started in San Francisco with something like 75 restaurants. That feels doable even with this bill. Today DoorDash is worth something like $15 billion. If you actually have a better idea and can execute, you will find investors.

Re: California law bans delivery apps from listing a restaurant without an agreement

#265
post #258

Earlier quoted context omitted.

> And has a clear disclaimer that they're not affiliated with the businesses. This isn’t actually clear. GrubHub’s about page: “ Grubhub is a leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners. ” This tells me as a customer that the restaurant is a consenting partner. This is a lie. EDIT: a commentor below had issue with my use of th…

No, you're misinterpreting it - they don't claim all of the restaurants are partners, just that they have the most comprehensive network of restaurant partners. Edit: -4 downvotes so far for highlighting a person's bad logic - good start to the New Year for critical thinking on HN; I'll assume they're projecting their anger for the topic onto me, their emotion overriding their logic.

Nowhere on their about page do they make it clear that they also have restaurants who are not their partners listed on their platform.

The given ask that there is a clear disclaimer. I’m saying it’s not clear at all, and therefore the hypothetical has deviated from reality so much that it’s useless.

Re: California law bans delivery apps from listing a restaurant without an agreement

#266
post #128

Earlier quoted context omitted.

Maybe I'm misunderstanding you but companies (and individuals) pass off things all the time. Shipping is perhaps the most obvious example. If I'm an eBay seller and ship something to you, once I give you a tracking number, it's mostly between you and UPS. (Unless, e.g., an item was improperly packed and UPS won't honor a claim, etc.)

That isn't the case with these delivery services. If ANYTHING is wrong with your order, they will refer you to the business that cooked the food unless you blow them up on the phone.

If you have a complaint, they just refund you right away. I think they know customers could start issuing chargebacks through the credit card company and they wouldn’t have a way to defend themselves against that.

Re: California law bans delivery apps from listing a restaurant without an agreement

#267
post #209

Earlier quoted context omitted.

They're frustrated by free advertising and new customers? The smart thing to do is krep taking the business and just put a leaflet in the pizza box/whatever saying ordering directly is cheaper/faster, if that's the case.

That “free” advertising is competing with your own channels (without the 30% commission). Also there are uncountable reports of them fucking up the delivery itself by not having appropriate containers, when the restaurant they are dealing doesn’t actually do deliveries. That will lose you customers and hurt your brand.

If it's such a bad deal, why is the restaurant continuing to service orders from the food delivery platform? It's not like they don't know who's placing the order.

Re: California law bans delivery apps from listing a restaurant without an agreement

#268
post #228

This is undeniably a good thing if you put yourself in the shoes of the restaurant. Imagine if someone went around impersonating your business online, leveraging the good name you have built for yourself over the decades. They create ads offering your expert development services, ostensibly competing with your existing website, but with intentionally slashed pricing and a ‘creatively’ misrepresented offering (aka gro…

If my resturant didn’t sign up for a middle man, don’t force yourself in between. That seems reasonable

But they're not forcing themselves in between. All the customers you already had are still going directly to you. They're just widening the pool of potential customers.

Re: California law bans delivery apps from listing a restaurant without an agreement

#269

Earlier quoted context omitted.

The question is whether it should be required . If a restaurant welcomes takeaway orders then whether you order and collect in person or hire someone to do it on your behalf is irrelevant. That's why I think this bill is ill-thought-out. If there are shady practices taking place then they should be dealt with with existing legislation and, if needed, with new legislation specifically targeting these practices. Instea…

> If a restaurant welcomes takeaway orders then whether you order and collect in person or hire someone to do it on your behalf is irrelevant. This is a big if, because existing outcry already belies that this assumption is actually not reality. Besides, if that’s the case it should be super easy to call the restaurant and ask to be a partner. You can mail them stickers to advertise for your delivery platform by past…

It is not an assumption. It is irrelevant to the restaurant. The "outcry" is not about that, it's about shady practices and some problems with online reviews, which partly stem from said shady practices, and partly because some people are not understanding the service (this bill won't change that).

Re: California law bans delivery apps from listing a restaurant without an agreement

#270
post #209

Earlier quoted context omitted.

They're frustrated by free advertising and new customers? The smart thing to do is krep taking the business and just put a leaflet in the pizza box/whatever saying ordering directly is cheaper/faster, if that's the case.

That “free” advertising is competing with your own channels (without the 30% commission). Also there are uncountable reports of them fucking up the delivery itself by not having appropriate containers, when the restaurant they are dealing doesn’t actually do deliveries. That will lose you customers and hurt your brand.

Perhaps add a 30% markup fee for any grubhub customer or ubereats customer based on payment info or familiar faces/cars.
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