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One problem is they aren't very transparent on fees. They charge both the business and the consumer. Probably offer the driver the minimum amount possible to en
by sharemywin 3y ago
One problem is they aren't very transparent on fees. They charge both the business and the consumer. Probably offer the driver the minimum amount possible to entice them to do the delivery. And the business fees eat up much of the profit in the transaction. Also, this whole thing was built on free investor money in a wildly growling economy.
What happens if demand sinks because consumers have to be more diligent with their money and 20% business fee + >$10 consumer fees + 20% tip isn't a good value anymore.
it also drive up the prices on the rest customers because the business needs to raise prices across the board to survive.
- SpicyLemonZest 3y agoFor most consumer products there's no fee transparency at all. When I buy a cabbage, I just get a price, not a detailed breakdown of how much money goes to the farmer, delivery truck driver, and grocery store. It might be higher or lower depending on where I shop, and I might be willing to pay more if the store is nicer or more convenient or I think they're more socially responsible. But I don't get the idea that transparency as such is an imperative here. If market conditions change and consumers have to be more diligent with their money, or funding conditions change and the delivery apps all discover that their business models are unsustainable, presumably customers can simply start ordering directly from restaurants again if that's the best way to get the food they want. It doesn't seem like there are any structural barriers to that.