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This is an extremely naive view of economics, and not how things work in reality. If they raise fees on customers that will reduce customer demand, which in eff

This is an extremely naive view of economics, and not how things work in reality. If they raise fees on customers that will reduce customer demand, which in effect “takes” from restaurants. Customers are price sensitive to the all in cost, not just the sub-total. Customers are paying for all of these fees in the end, irrespective of how they are charged.

spywaregorilla 5y ago
This is an extremely naive view of economics, and not how things work in reality. Delivered food is a substitute good for take out or non-delivered food. Artificially cheap delivery services shift consumer preferences to delivered food. It is likely that losing 30% margin on restaurants is worse than the overall growth of the market. But if delivery apps distort the market, restaurants are forced to play ball or lose out to competitors in a classic prisoner's dilemma, bringing everyone down together. Regulation to limit the proportion of revenue taken from restaurants helps prevent cash flooded delivery companies from just burning cash to fuel their own growth while leaving the restaurants to eat shit and die.