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I agree with the original article that the platforms are screwing over the small businesses, but I think this comment about the end-user experience is very impo
by 205guy 6y ago
I agree with the original article that the platforms are screwing over the small businesses, but I think this comment about the end-user experience is very important too. Some people don't like talking on the phone, some people just like the convenience of one app to order any kind of food. Like it or not, in aggregate, people value convenience and low price over quality of experience and fairness.
I think there are a lot of variables in play. First is about restaurants as commodity. The problem is that in the US, this is often literally true. Chain restaurant (franchises) all have the same menu, same suppliers, same process. Yet they still compete with "mom&pop" places where recipes are unique, food is locally sourced (sometimes), and they are pouring their sweat and tears into the business to make a living. People say they want to support their local businesses, but then convenience or price wins out in the end.
Another factor is the asymmetry between small-business owner restaurants and the nation-wide delivery platforms. Industrial food chains like Taco Bell and Chipotle's can negotiate national contracts (and pass the costs to their franchisees), but every independent restaurant is at a disadvantage. Independent restaurants are usually overloaded
already dealing with suppliers, employees, and landlords, and they are not savvy about all the issues with online advertising and marketing.
Finally, there is the deception. The platforms have slick marketing and sell one rosey outlook to the restaurants, get the contract signed, then do a lot of other shady things as this original article points out. It would be great if the restaurant owners could understand these marketing practices and insist on contracts that protect them. Given that most owners are probably too busy and not knowledgeable about online marketing, it would be great if there were small-business associations that stood up and insisted on fair terms for all small businesses. And absent that, there should be regulations and enforcement.
Yes, the online advertising industry definitely needs more regulation, and if the small businesses are too fragmented to stand up together, the government should step in to make laws and stop the abuses.