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Wow, the entire advertising chain here looks like a completely unnecessary TAX on restaurants and consumers: * A restaurant pays the advertising fee to DoorDas
by cs702 6y ago
Wow, the entire advertising chain here looks like a completely unnecessary TAX on restaurants and consumers:
* A restaurant pays the advertising fee to DoorDash/GrubHub but the money is used to divert organic searches for the restaurant to DoorDash/GrubHub instead. The restaurant gets nothing for that advertising fee. In fact, it loses valuable organic traffic online.
* A consumer searches for a restaurant, but the first result is for a paid link to DoorDash/GrubHub. The consumer gets connected to these middlemen instead of the restaurant as intended. The search engine and DoorDash/GrubHub charge their cut for inserting themselves into the transaction.
The only term that in mind describes the act of extracting rents in exchange for providing no value or even subtracting value is... extortion.
- rossjudson 6y agoWhen I first started using food apps I thought they were great, and never really considered the flow of money. One day I ordered from a kebab place through an app, and went to pick it up myself. When I got there the owner asked me -- hey, why didn't you just call me? I replied that the app was really convenient, etc. He told me that the app was charging him 15% for my order, even though I was picking it up myself. So that was an eye-opening moment, and I haven't felt the slightest urge to use a food app since, if I have the option to get it myself or if the restaurant has their own delivery service.