5 ms·
The fact that there are many apps competing for this businesses, but the costs to the restaurants are still so high, seems suspicious to me.
by standardUser 5y ago
The fact that there are many apps competing for this businesses, but the costs to the restaurants are still so high, seems suspicious to me.
- maldeh 5y agoThere was a good thread on this topic a year ago: https://news.ycombinator.com/item?id=23216852 https://news.ycombinator.com/item?id=23216852 That and Matt Levine's take on it ( https://www.bloomberg.com/opinion/articles/2020-05-18/the-unicorns-fell-into-a-ditch https://www.bloomberg.com/opinion/articles/2020-05-18/the-un... ) posit the thesis of an entire industry that evolved incorrectly and artifically due to near-zero interest rates and arbitrage.
- cryptofistMonk 5y agoDelivery is expensive and network effects are valuable. Price-fixing is already illegal
- toomuchtodo 5y agoDelivery platforms can stay solvent due to capital markets longer than restaurants and drivers they exploit. Regulation is required.
- cryptofistMonk 5y agoAnd they will become irrelevant if there are no good restaurants on their platform
- neysofu 5y ago> Food delivery startups: Hey we'll handle delivery for you for a fee, sounds good? > Restaurants: Ok! / No, thanks. How is this exploitation? Please.
- toomuchtodo 5y agohttps://ilsr.org/biting-back-delivery-apps-are-gobbling-up-restaurant-revenues-and-cities-have-had-enough/ https://ilsr.org/biting-back-delivery-apps-are-gobbling-up-r... https://ilsr.org/wp-content/uploads/2021/05/ILSR_SpecialDelivery_Final.pdf https://ilsr.org/wp-content/uploads/2021/05/ILSR_SpecialDeli... https://thecounter.org/grubhub-domain-purchases-thousands-shadow-sites/ https://thecounter.org/grubhub-domain-purchases-thousands-sh... https://www.eater.com/22228352/convenience-of-delivery-apps-destroying-restaurants-uber-eats-doordash-postmates https://www.eater.com/22228352/convenience-of-delivery-apps-... https://www.economicliberties.us/our-work/rescuing-restaurants-how-to-protect-restaurants-workers-and-communities-from-predatory-delivery-app-corporations/ https://www.economicliberties.us/our-work/rescuing-restauran... https://www.nytimes.com/2020/06/09/technology/delivery-apps-restaurants-fees-virus.html https://www.nytimes.com/2020/06/09/technology/delivery-apps-...
- cryptofistMonk 5y agoExactly the point - when apps charge too much, people will complain and alternatives will arise. From your second source: > "Dozens of locally owned services are proving there's a better alternative"
- toomuchtodo 5y agoAbsolutely, local platform competitors can pop up, but the network effects of national platforms is powerful and their influence and actions damaging in the interim. We may just disagree on this, and that's to be expected. As previously stated, I believe more regulation is required, even if that puts national platforms out of business.
- robertlagrant 5y agoIn the interim is fine. They also provide a vital role in establishing how online shopping for food should work. It's easy to copycat after, as is evidenced by even local providers being able to do it.
- standardUser 5y agoFood delivery has been around and profitable for generations. And there are several well-known apps in most markets. And just because a thing is illegal doesn't mean it doesn't happen.
- ojbyrne 5y agoI would guess that is because the cost of delivery is very high.
- adkadskhj 5y agoWhat's suspicious? Isn't it common for the marketplace to avoid competition when possible? Sometimes directly colluding, sometimes indirectly?
- pbreit 5y agoThe cost to deliver meals is high.