4 ms·

If this really does add $5 to the cost of every delivery it will dramatically reduce demand for deliveries. This will cause huge demand for delivery jobs, with

by ars 3y ago

If this really does add $5 to the cost of every delivery it will dramatically reduce demand for deliveries. This will cause huge demand for delivery jobs, with insufficient supply of jobs. Normally this is rectified with price (wage) adjustments, but not here. It'll be like rent controlled apartments: A privileged few get high wages (low rent), and no jobs for the rest (high rent in my analogy). The requirement to pay even when there are no jobs will make it even worse - the companies will require drivers to accept every job or be kicked out, and/or reduce the number of people they accept as drivers. This will make service worse for everyone. Not smart NY, not smart.

johnnyanmac 3y ago
>This will cause huge demand for delivery jobs, with insufficient supply of jobs. Normally this is rectified with price (wage) adjustments, but not here. How does this increase demand for jobs if you also say that demand for deliveries decrease? There's only huge demand because it's entry level and/or side-gig level work. Not because deliveries are prestigious.It will just toss the ball to the next lowest barrier to entry job. >the companies will require drivers to accept every job or be kicked out, and/or reduce the number of people they accept as drivers. This will make service worse for everyone. People aren't going to stop eating. If it makes the service worse because the customers are choosing to go out themselves or buy groceries, I see that as a societal win. Of course, no decision is without short term downsides, and this is one of them. Even then, this is only for one (major) city. This situation might take years to spread even if the court case is a slam dunk.
- ars 3y ago
  > How does this increase demand for jobs if you also say that demand for deliveries decrease? Demand for jobs goes up because they pay better. But the jobs are not available because deliveries decrease. > If it makes the service worse because the customers are choosing to go out themselves or buy groceries, I see that as a societal win. You are forgetting that it means the drivers now have less work. This change in minimum wage, in the net, will cause a loss for drivers, not a gain. It will be uneven, when they have work it will pay well, but it will be coupled with large periods of no work. I don't think that's a good thing for the drivers. > I see that as a societal win More cars on the road I guess? > Of course, no decision is without short term downsides, and this is one of them. What "short term"? Long term this will be bad for drivers in NY.
  - johnnyanmac 3y ago
    >More cars on the road I guess? well we're talking New York, I don't think much will change in that regard. >Long term this will be bad for drivers in NY food delivery is not the only career for drivers these days, especially in New York. And this seems to assume that there's a lack of supply for minimum wage jobs. I honestly can't prove/disprove that notion, but I don't feel that is the case as of now.
ImPostingOnHN 3y ago
> If this really does add $5 to the cost of every delivery it wouldn't, because it's an increase in costs, not an increase in prices if delivery apps choose to increase prices because they want more money, that's their decision: they aren't entitled to exactly the same profit they had before, and if they insist upon it, that's their greed speaking
- ars 3y ago
  What profit? What greed? Delivery apps run at a loss. "DoorDash is not profitable as its net losses amounted to over $1.3 billion in 2022, compared to $468 million in net losses in 2021." They hope, eventually, someday, to make a profit. This change in NY means they have no choice but to raise prices.
  - saagarjha 3y ago
    Yeah, movies run at a loss too.
  - ImPostingOnHN 3y ago
    they literally aren't entitled to any profit at all, or even a viable business model, so they have a choice to make upon discovering that theirs isn't, and aren't obliged to raise prices otherwise, how could they be operating at a loss now?
deleted 3y ago
[deleted]
jareklupinski 3y ago
> If this really does add $5 to the cost of every delivery it will dramatically reduce demand for deliveries. just the news of this made me stop using app delivery altogether now I go on grubhub to find the restaurant I want, then search for the restaurant's website and order the same food through the restaurant's site very often the prices on the store's site will be 1-2$ cheaper per item! and i swear I get more food in my orders...

by ars 3y ago

johnnyanmac 3y ago

>This will cause huge demand for delivery jobs, with insufficient supply of jobs. Normally this is rectified with price (wage) adjustments, but not here. How does this increase demand for jobs if you also say that demand for deliveries decrease? There's only huge demand because it's entry level and/or side-gig level work. Not because deliveries are prestigious.It will just toss the ball to the next lowest barrier to entry job. >the companies will require drivers to accept every job or be kicked out, and/or reduce the number of people they accept as drivers. This will make service worse for everyone. People aren't going to stop eating. If it makes the service worse because the customers are choosing to go out themselves or buy groceries, I see that as a societal win. Of course, no decision is without short term downsides, and this is one of them. Even then, this is only for one (major) city. This situation might take years to spread even if the court case is a slam dunk.

ars 3y ago
> How does this increase demand for jobs if you also say that demand for deliveries decrease? Demand for jobs goes up because they pay better. But the jobs are not available because deliveries decrease. > If it makes the service worse because the customers are choosing to go out themselves or buy groceries, I see that as a societal win. You are forgetting that it means the drivers now have less work. This change in minimum wage, in the net, will cause a loss for drivers, not a gain. It will be uneven, when they have work it will pay well, but it will be coupled with large periods of no work. I don't think that's a good thing for the drivers. > I see that as a societal win More cars on the road I guess? > Of course, no decision is without short term downsides, and this is one of them. What "short term"? Long term this will be bad for drivers in NY.
- johnnyanmac 3y ago
  >More cars on the road I guess? well we're talking New York, I don't think much will change in that regard. >Long term this will be bad for drivers in NY food delivery is not the only career for drivers these days, especially in New York. And this seems to assume that there's a lack of supply for minimum wage jobs. I honestly can't prove/disprove that notion, but I don't feel that is the case as of now.

ImPostingOnHN 3y ago

> If this really does add $5 to the cost of every delivery it wouldn't, because it's an increase in costs, not an increase in prices if delivery apps choose to increase prices because they want more money, that's their decision: they aren't entitled to exactly the same profit they had before, and if they insist upon it, that's their greed speaking

ars 3y ago
What profit? What greed? Delivery apps run at a loss. "DoorDash is not profitable as its net losses amounted to over $1.3 billion in 2022, compared to $468 million in net losses in 2021." They hope, eventually, someday, to make a profit. This change in NY means they have no choice but to raise prices.
- saagarjha 3y ago
  Yeah, movies run at a loss too.
- ImPostingOnHN 3y ago
  they literally aren't entitled to any profit at all, or even a viable business model, so they have a choice to make upon discovering that theirs isn't, and aren't obliged to raise prices otherwise, how could they be operating at a loss now?

deleted 3y ago

[deleted]

jareklupinski 3y ago

> If this really does add $5 to the cost of every delivery it will dramatically reduce demand for deliveries. just the news of this made me stop using app delivery altogether now I go on grubhub to find the restaurant I want, then search for the restaurant's website and order the same food through the restaurant's site very often the prices on the store's site will be 1-2$ cheaper per item! and i swear I get more food in my orders...