4 ms·

This is a cap on the invisible fee that Uber and other companies charge to restaurants. It is not transparent or visible on the consumer end that a restaurant

by cwhiz 6y ago

This is a cap on the invisible fee that Uber and other companies charge to restaurants. It is not transparent or visible on the consumer end that a restaurant is only getting 75% of the listed food prices. This is, in effect, forcing these delivery companies to be more transparent about their pricing. Instead of charging a restaurant an invisible 25% it will be capped at 10% and the delivery companies will have to move the remaining 15% onto the consumer. Or I guess they can eat the 15% but they can't make money as it is, so I doubt that. I would be fine if it was instead just a total price transparency law. I think consumers should know exactly where their bill is going. However, these delivery companies are extraordinarily shady and I believe they would leave no stone unturned to obfuscate the fact that they are secretly ripping off restaurants. I think capping the invisible restaurant fee at 10% is the simplest approach to reach the same desired end result.

citizenkeen 6y ago
Exactly. This is not a cap on prices, it's a cap on hidden prices. When the restaurants have to raise their prices to compensate for Uber's fee, Uber doesn't take the hit, the restaurant does. This forces Uber to more clearly tell the customer how much their convenience costs, but it can be anything Uber wants.
- karlakush 6y ago
  No, it doesn't. Previously, when delivery services got an order for a $10 burger, they charged a $2 fee to the restaurant and a $4 delivery fee to the customer for a total charge to the customer of $14 and $6 of revenue for the delivery service. Now, they're capped at charging the restaurant a $1 fee so they will need to charge a $5 fee to the customer ($15 total) to get the same $6 of revenue. This is really just an attempt to shift wealth from consumers to restaurants. Now consumers will have to pay one dollar more which goes mostly to the restaurant.

by cwhiz 6y ago

citizenkeen 6y ago

Exactly. This is not a cap on prices, it's a cap on hidden prices. When the restaurants have to raise their prices to compensate for Uber's fee, Uber doesn't take the hit, the restaurant does. This forces Uber to more clearly tell the customer how much their convenience costs, but it can be anything Uber wants.

karlakush 6y ago
No, it doesn't. Previously, when delivery services got an order for a $10 burger, they charged a $2 fee to the restaurant and a $4 delivery fee to the customer for a total charge to the customer of $14 and $6 of revenue for the delivery service. Now, they're capped at charging the restaurant a $1 fee so they will need to charge a $5 fee to the customer ($15 total) to get the same $6 of revenue. This is really just an attempt to shift wealth from consumers to restaurants. Now consumers will have to pay one dollar more which goes mostly to the restaurant.