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What do you mean? In this case small businesses were being abused by delivery apps. Once these apps captured the customers of the small business, they converted

What do you mean? In this case small businesses were being abused by delivery apps. Once these apps captured the customers of the small business, they converted the customers to their alternative offering restaurant. This is a good piece of legislature unless I am missing something.

foogazi 6y ago
How were businesses being abused? Do you mean customers use the app to order from X-Pizza, the app then prominently lists Y-Pizza and now X loses customers?
- bombcar 6y ago
  The main issue that I saw was: 1. Customer orders from Big Don’s Pizza (but it’s actual door dash) 2. Pizza arrives late, cold, and on fire. 3. Customer swears to and at Big Don that he’ll never buy from them again. 4. Dominos wins.
- MisterBastahrd 6y ago
  Customer orders pizza from SmallCorp through BigCorp. BigCorp pizza arrives late, with wrong order because BigCorp transcribed it wrong, or because BigCorp's courier failed to double check all the items. Customer gets incorrect and incomplete order from BigCorp. Customer calls BigCorp to complain. BigCorp tells customer to contact SmallCorp if they have an issue. So now SmallCorp has an issue where even though they correctly fulfilled the order sent to them by BigCorp, the customer (who they have no record of) is unsatisfied. I've experienced this personally from both of the "red letter" food delivery apps. Just as bad is when they screw up and add "pick up" as an option for a company who never agreed to take pick up orders. Last week I ordered meals for my family, arrived at the place, they had no record of me placing the order because they did not do business with BigCorp.
wskinner 6y ago
DoorDash and Postmates would deliver from every restaurant, whether or not they had a relationship with that restaurant. This helped them grow quickly. A DoorDash competitor that started today would not be able to grow that way because it is now illegal to deliver from a restaurant without the restaurant’s consent. DoorDash is already large and has a well known brand, so this doesn’t hurt them. It does hurt future competitors, for whom the cost of developing a relationship with every restaurant is cost prohibitive.
- DevKoala 6y ago
  That makes sense, I see that point, but I think that stopping the bleeding is more important. Moreover the new set of rules can also benefit small competitors in the delivery space by allowing them to sign exclusive agreements with small businesses.
- wasdfff 6y ago
  It may hurt future competitors but the law is still good because it protects the reputation of local businesses. This is like complaining that its illegal to pollute the local river. Or those arguments from backwards nations that they should be allowed to pollute like the western world did in the 1900s. Yes, that makes you money, but individual profits are rarely collectively beneficial.

foogazi 6y ago

How were businesses being abused? Do you mean customers use the app to order from X-Pizza, the app then prominently lists Y-Pizza and now X loses customers?

bombcar 6y ago
The main issue that I saw was: 1. Customer orders from Big Don’s Pizza (but it’s actual door dash) 2. Pizza arrives late, cold, and on fire. 3. Customer swears to and at Big Don that he’ll never buy from them again. 4. Dominos wins.
MisterBastahrd 6y ago
Customer orders pizza from SmallCorp through BigCorp. BigCorp pizza arrives late, with wrong order because BigCorp transcribed it wrong, or because BigCorp's courier failed to double check all the items. Customer gets incorrect and incomplete order from BigCorp. Customer calls BigCorp to complain. BigCorp tells customer to contact SmallCorp if they have an issue. So now SmallCorp has an issue where even though they correctly fulfilled the order sent to them by BigCorp, the customer (who they have no record of) is unsatisfied. I've experienced this personally from both of the "red letter" food delivery apps. Just as bad is when they screw up and add "pick up" as an option for a company who never agreed to take pick up orders. Last week I ordered meals for my family, arrived at the place, they had no record of me placing the order because they did not do business with BigCorp.

wskinner 6y ago

DoorDash and Postmates would deliver from every restaurant, whether or not they had a relationship with that restaurant. This helped them grow quickly. A DoorDash competitor that started today would not be able to grow that way because it is now illegal to deliver from a restaurant without the restaurant’s consent. DoorDash is already large and has a well known brand, so this doesn’t hurt them. It does hurt future competitors, for whom the cost of developing a relationship with every restaurant is cost prohibitive.

DevKoala 6y ago
That makes sense, I see that point, but I think that stopping the bleeding is more important. Moreover the new set of rules can also benefit small competitors in the delivery space by allowing them to sign exclusive agreements with small businesses.
wasdfff 6y ago
It may hurt future competitors but the law is still good because it protects the reputation of local businesses. This is like complaining that its illegal to pollute the local river. Or those arguments from backwards nations that they should be allowed to pollute like the western world did in the 1900s. Yes, that makes you money, but individual profits are rarely collectively beneficial.