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Yelp was behaving in a morally if not legally fraudulent manner by having up until that point presenting their service not as a reservation system to the custom
by SllX 5y ago
Yelp was behaving in a morally if not legally fraudulent manner by having up until that point presenting their service not as a reservation system to the customer, but as a Yellow Pages. They didn’t say this is a number you can use to reserve through Yelp; they presented it as the business’s phone number, and without informing either businesses or customers that they changed up. Of course now they’re in the reservations game.
That said, these commissions are a COGS/COSS item that customers don’t actually need to know about. I don’t need to know that you bought your cheesecake at $30 and are selling it for $60. I don’t need to know the cost of the time it took the employee to stick it in a box and ring me up. And I certainly don’t need to know any of the overhead costs. I’m not asking to review your P&L just to determine if you are receiving a fair amount for your goods and services, nor should your books be open to me. I trust that whatever price you set is the price you are okay with receiving for your goods and services. If it isn’t, raise them or close and do something else with your life.
- bryanlarsen 5y ago> If it isn’t, raise them or close and do something else with your life. They don't have that option. The contracts stipulate that delivery prices (before fees are subtracted) cannot be higher than the lowest price. So you can't charge 30% more for Uber Eats to cover the fee vs customer pick-up or dine-in. In a fair market restaurants could negotiate the clause out of the contract, but of course nobody except the really large chains have any negotiating powers against Uber.
- SllX 5y agoThat’s also not my business, but point of order: I know several businesses that do exactly this, where the price on DoorDash is about 15-20% higher than what I pay ordering in the restaurant.