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> So everyone is losing except the consumer that is getting a product for below the true cost? The Uber Eats / Doordash execs are not losing money, even if the
by southerntofu 5y ago
> So everyone is losing except the consumer that is getting a product for below the true cost?
The Uber Eats / Doordash execs are not losing money, even if the company is. They're rich as fuck and building their fortune on quasi-slave labor from thousands of immigrants who patrol the streets with bikes/motorbikes all night long for poor wages
The restaurants lose by having to deal with fucking algorithms and a non-existing company support. They get to deal with angry customers when the app accepted payment for something that's not available today, or when the shop has already closed, for example.
- prostoalex 5y agoCurious why no one challenged them. The market has high locality, so you wouldn't even have to mount a nationwide delivery service. Pick a second-tier city, sign up a dozen or so of popular restaurants, get a catchy domain like TulsaDelivers.com or SpokaneTakeout.com, and find some local driver partners. Is the app loyalty that high at consumer level? Or would a localized delivery app still not make the margins to offer better terms to drivers?
- southerntofu 5y agoThere are people doing this, eg. coopcycle.org. But there's a few barriers: - people who are not from the neighborhood will be familiar with UberWhatever but not with your local platform (network effect) - local platforms can't get away from working regulations (and that's a good thing) so they need much higher margins than multinationals in order to respect the law - small local platforms need actual money/clients to grow, while multinationals like Uber get VC/whoever money "for free" to spend at a loss just to gain market traction in hope for future profit So it's like can you and a few neighbors fight with sticks against the tank of a well-funded invader? Sure, but the odds of success are not great. My best regards to worker coops worldwide who help make capitalism a nightmare of the past.