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

leginfo.legislature.ca.gov

271–280 of 663 posts

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

#271
What’s exactly the issue here?

In my eyes, I’m paying for a service that does the ordering as well as delivery of food.

What’s the difference between me calling in and having to physically drive to a location to pick it up and doordash doing the ordering on my behalf and then having one of their drivers get it for me?

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

#272

Earlier quoted context omitted.

A courier can still collect food. They can’t impersonate the restaurant anymore.

The law prohibits a courier from being commissioned to place an order, collect it, and deliver it to you. It’s just criminalizing a perfectly legitimate form of arbitrage. The law isn’t about couriers impersonating restaurants either, because that’s just fraud and it’s already illegal. It’s just another example of a terrible law created at the behest of businesses that aren’t competent enough to keep up with changes…

None of these Uber-for-X things are an issue at small scale, like a courier or other type of shared assistant ordering and delivering a pizza for you. Absolutely no one cares no matter what the letter of the law is. (And it's not really a food delivery platform at that point anyway.)

The problem is when it's a growth-oriented SV company.

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

#273
post #258

Earlier quoted context omitted.

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.

No, you're just not accepting in the statement you wrote what you claim it means is incorrect - you're now trying to double down that it's not clear but it is clear, you're just seeming to want them to spell it out completely as your argument point but through extrapolation it's not necessary, assuming you're able to/have learned how to extrapolate.

You really want everyone everywhere on the internet to spell out the complete logic, when the full logic can be understood simply by extrapolating, coddling people in the process?

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

#274

Earlier quoted context omitted.

IDK, this seems more like a mixed-bag to me on account of being opt-in instead of opt-out. Absolutely I agree that businesses should be able to easily opt out of being listed on a given delivery platform if/when it causes problems for them. But on the flip side, I've observed a lot of restaurant owners not having the time, energy, or know-how to set up even basic online things that could really boost their business.…

> Not to mention, of course, any new entrants! This law will make it much harder to compete with "the next Doordash". Well of course the law will make it much harder to compete to be the next predatory, deceitful company that pretends to be small businesses! That’s the whole point of this law. Some business practices are unethical and relying on them to grow should be made illegal.

Yeah, like I said, restaurants should absolutely have easy and fast recourse against predatory platforms.

The heuristic, "but will restaurant owners ask to be delisted because of this?" should be a powerful force for keeping overly aggressive product managers in check.

I worry that the bill misses the point that these platforms can also be a free or low-cost source of new business. As a small business owner myself (albeit e-commerce), free new customers doesn't sound so bad. (Obviously, for many established businesses, it's just cannibalization of their existing base - but that's not true for all businesses).

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

#275

Earlier quoted context omitted.

IDK, this seems more like a mixed-bag to me on account of being opt-in instead of opt-out. Absolutely I agree that businesses should be able to easily opt out of being listed on a given delivery platform if/when it causes problems for them. But on the flip side, I've observed a lot of restaurant owners not having the time, energy, or know-how to set up even basic online things that could really boost their business.…

> Not to mention, of course, any new entrants! This law will make it much harder to compete with "the next Doordash". Well of course the law will make it much harder to compete to be the next predatory, deceitful company that pretends to be small businesses! That’s the whole point of this law. Some business practices are unethical and relying on them to grow should be made illegal.

I think your anger is blinding you to the fact that this law doesn't actually address any of those concerns.

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

#276

Earlier quoted context omitted.

IDK, this seems more like a mixed-bag to me on account of being opt-in instead of opt-out. Absolutely I agree that businesses should be able to easily opt out of being listed on a given delivery platform if/when it causes problems for them. But on the flip side, I've observed a lot of restaurant owners not having the time, energy, or know-how to set up even basic online things that could really boost their business.…

> But on the flip side, I've observed a lot of restaurant owners not having the time, energy, or know-how to set up even basic online things that could really boost their business. Isn't part of being a successful business knowing where to put your energy as a business owner? You're saying that restaurants don't necessarily have the ability to make the best decisions for their business, therefore they should be able…

This is already the case with bigger companies. As is the usual case with a lot "disruptive" firms, that "growth hacking" comes from exploiting some regulatory loophole that no one else has seen yet (e.g. most things related to the "sharing economy").

I'm pretty sure if I just declared myself to be a sales partner (idk the term?) of Cisco, IBM, Oracle, etc and just resold their gear, I'd be in hot water legally because my actions would reflect on them.

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

#277
post #173
post #87

Earlier quoted context omitted.

Then why not make impersonation illegal? If they enforce making reselling illegal proactively they can enforce making impersonation illegal just the same. This is overreach. I would be rightly pissed if I lived in CA.

Impersonation is illegal, but GrubHub would argue that their logos are everywhere on these menus and it’s clear that they’re acting as agent. To resolve this under existing law we’d need to wait for a lawsuit to roll through the courts. The legislature passes laws all the time that are somewhat duplicative to clarify their intent. The law isn’t a normalized database, and that actually speeds things up.

>GrubHub would argue that their logos are everywhere on these menus and it’s clear that they’re acting as agent

Which is obvious to anyone who can and does read text. It seems to me that CA protects businesses not from impostors, but from illiterate who cannot differentiate delivery from production and they just rush to review on completely separate review platforms (it is wrong even if delivery contracted with production beforehand, imagine an angry customer reviewing bricks from a brick factory because a reseller brought them half a trailer of bricks broken in half). I bet that when you call a number, they even introduce as “grubhub support”, not as a restaurant. Not only this law treats a symptom rather than a disease, it also allows established monopolies who first used this “loophole” to retain their status in the future.

As of the problem as a whole - restaurants with their own delivery usually have a much worse service than aggregators’. Claims that “they just take our markup” is nonsense, because in practice people do value predictability and ratings of separare delivery services, while they cannot really stick a lever into many different companies that produce nice food but their delivery guys simply suck “because it’s small place and they have to meet ends”. The alternative is not their own delivery, the real alternative is to shutdown. Pandemic changed markets and fault tolerances drastically and those who ignore these facts are unlikely to bloom in it anyway.

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

#278

Earlier quoted context omitted.

That’s not what the law does. It addresses the problem GP pointed out, and it bans the service you’ve described as well. It also doesn’t forbid you from paying someone to pick your food up for you. Here’s the relevant text: > 22599. A food delivery platform shall not arrange for the delivery of an order from a food facility without first obtaining an agreement with the food facility expressly authorizing the food del…

Who's going to setup a food pickup business in 2021 without being an online business? "please fax your order and card details"? This bill does not require restaurants' permission if you're not an online business, that's true, but in practice that's not really any use to avoid having to get permission.

I don’t understand what you’re getting at. The entire point of this law is to make online delivery platforms get permission from restaurants before taking orders on their behalf.

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

#279

Earlier quoted context omitted.

IDK, this seems more like a mixed-bag to me on account of being opt-in instead of opt-out. Absolutely I agree that businesses should be able to easily opt out of being listed on a given delivery platform if/when it causes problems for them. But on the flip side, I've observed a lot of restaurant owners not having the time, energy, or know-how to set up even basic online things that could really boost their business.…

> But on the flip side, I've observed a lot of restaurant owners not having the time, energy, or know-how to set up even basic online things that could really boost their business. Isn't part of being a successful business knowing where to put your energy as a business owner? You're saying that restaurants don't necessarily have the ability to make the best decisions for their business, therefore they should be able…

> Isn't part of being a successful business knowing where to put your energy as a business owner?

If you own a small restaurant... are you really in it to be a tycoon of industry? Or are you passionate about the food and the community?

I know I want to spend as little time as possible thinking about sales and marketing, and just focus on improving my product and making my customers happy.

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

#280

Earlier quoted context omitted.

This exact thing is happening to one of my favorite local pizza places. Very frustrating for them.

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.

Frustrated by people having terrible customer service experiences associated with their business but completely out of their control.
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