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

leginfo.legislature.ca.gov

371–380 of 663 posts

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

#371

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…

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.…

Some delivery platforms masqueraded as restaurants to customers and customers to restaurants. How can they opt out if they don't know it's happening?

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

#372
post #289
post #209

Earlier quoted context omitted.

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.

I’m confused. How is GrubHub getting a 30% commission out of restaurants that don’t actively partner with them?

They inflate menu prices and add additional service and delivery fees. You end up spending $50 on a meal that should be $30, and if you were shopping by amount of money spent (as many people are) then the net result is $30 going to the restaurant instead of all $50 you were willing to spend.

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

#373

Earlier quoted context omitted.

I think it's a matter of expectation more than anything. Someone who orders food from a restaurant might expect that the restaurant has recipes designed for delivery. I wouldn't expect a top quality restaurant burger when I order delivery, but I'd still be disappointed if it were a soggy mess instead of the 5-8/10 I've come to expect from decent delivery options.

I think it IS a matter of expectation, yes. If I go and pick up something that doesn't sit around at room temperature well (let's say a milkshake), and drive 20 minutes home before eating it, I'm not going to ding the restaurant for the fact it's melted. If, however, milkshakes are offered for takeout (reasonable), but then a third delivery party gets involved and starts offering them for delivery, anyone ordering it…

Funny fact, one of the best deliveries I’ve gotten this year was ice cream. The local creamery[0] has an option to sign up for weekly deliveries. They obviously bring the equipment to keep it properly frozen (easier than a milkshake I know), and check IDs for their alcoholic ice creams. I suspect that if they wanted to, they could have pulled off milkshake deliveries, although the logistics wouldn’t scale.

0 - https://ilovethestil.com/

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

#374

Earlier quoted context omitted.

None of those examples claim to be, or otherwise tey to make you think they are, an official outlet for those goods.

Sure they do, of course ebay hosts used items but they also promote direct manufacturer-to-customer sales for many products. Stubhub actually does sell plenty of seats that were never otherwise available to the public, further, with their stadium maps and use of team names, etc, plenty of people might assume they are buying tickets via an official or authorized channel. StockX you likely have a point -- but it still…

I would argue that the average person would not consider ebay an official vendor for a brand like Amazon. Ebay is set up to make the seller prominent. (Moreso than amazon does, I would argue.)

I haven't used StubHub in a while, but if they have move to being a first party distributor in some cases, i could see some confusion arising for a consumer.

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

#375
post #97

Earlier quoted context omitted.

Technically they didn't have to make any pizzas at all. I always felt like the story about the dough was embellished a little bit to avoid being charged with fraud.

They had to produce something that could legally be called a pizza to at least fulfill the purchase contract with DoorDash and avoid making themselves legally liable. But what would probably have worked would be to pull this off with two restaurants, each ordering pizzas from the other, with them sending the same physical pizzas around all the time. Cold and old pizza is still legally a pizza, just a bad one.

Reading through the article again, it is strongly implied that a lot of stores may have a similar arbitrage issue and the DD os getting taken to the cleaners over it. That and I don't think there are any legal issues over this as there were no contracts signed. If anything DD is the one in legal trouble over it.

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

#376

Earlier quoted context omitted.

> 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.

Will there be a "next DD"? It seems that they were hard pressed to make money despite the pandemic. Who wants to pick up the baton and continue losing money?

What I don’t understand is: Uber at least had a vision (self driving) that VC could look forward to. What’s the end goal of these delivery apps that just bleed money?

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

#377

Earlier quoted context omitted.

This is fair point but what stops these businesses from refusing to do food pick up. Especially, if they know food won't taste good if not consumed within a few minutes. I rather resturants remove to-go option instead of blaming delivery companies.

Legally the only way to acquire restaurant food over here atm is takeout or delivery. They can't just not offer it.

so the remedy is to implement a law that will live forever, even as we expect covid to (hopefully) recede this year?

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

#378
post #297

Earlier quoted context omitted.

> using yesterdays soup as a base for today's soup That's not necessarily a bad thing. There is such a thing as a perpetual stew [0] in which a stew is replenished with ingredients over months or even years. [0] https://en.wikipedia.org/wiki/Perpetual_stew

And it's not common at all in today's world, for a reason.

Well, as parent's parent demonstrates, it is common, just in a different way.

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

#379

Earlier quoted context omitted.

> 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.

Most small restaurants fail within a year of opening. It’s a very tough business.

Some app claiming that you are partnering with them for delivery when that is not the case is not necessarily positive for a business given potential reputational risk.

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

#380

Earlier quoted context omitted.

None of those examples claim to be, or otherwise tey to make you think they are, an official outlet for those goods.

Sure they do, of course ebay hosts used items but they also promote direct manufacturer-to-customer sales for many products. Stubhub actually does sell plenty of seats that were never otherwise available to the public, further, with their stadium maps and use of team names, etc, plenty of people might assume they are buying tickets via an official or authorized channel. StockX you likely have a point -- but it still…

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