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by rrrrrrrrrrrryan 2128 days ago
I can expand upon the $5 - $10 meal by example.

I'm from southern California. I worked in Wellington, New Zealand for a stint, and I found that restaurants were priced about the same as back home. That is to say, an average sit-down restaurant meal of equivalent quality was roughly the same price in USD.

However, in America, there's an entirely different class of much cheaper food (takeout food), and younger people in metropolitan areas eat this food very often. These were usually powered by cheap immigrant labor, often paid under the table to skirt taxes and mandatory benefits.

Labor protections in New Zealand are much higher, of course, and without an easily exploitable underclass, this food simply can't exist there. There weren't really regular kiwis who ate out 1 - 2x per day - virtually all of them cooked most of their meals at home themselves.

This is the environment in which these food delivery companies are operating. These restaurants already have extremely thin margins, consumers are price-sensitive, and as long as the delivery company is just a middle-man, they'll struggle to do this thing profitably. If they lose access to their cheap labor by having to re-classify drivers as actual employees, it might be impossible.

1 comments

Interesting! Thank you :)