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by cryptofistMonk 1815 days ago
The restriction may have made sense during a pandemic, but long term this really seems like something for markets, rather than governments, to solve
3 comments

The fact that there are many apps competing for this businesses, but the costs to the restaurants are still so high, seems suspicious to me.
Delivery is expensive and network effects are valuable.

Price-fixing is already illegal

Delivery platforms can stay solvent due to capital markets longer than restaurants and drivers they exploit. Regulation is required.
> Food delivery startups: Hey we'll handle delivery for you for a fee, sounds good?

> Restaurants: Ok! / No, thanks.

How is this exploitation? Please.

Exactly the point - when apps charge too much, people will complain and alternatives will arise.

From your second source: > "Dozens of locally owned services are proving there's a better alternative"

And they will become irrelevant if there are no good restaurants on their platform
Food delivery has been around and profitable for generations. And there are several well-known apps in most markets. And just because a thing is illegal doesn't mean it doesn't happen.
What's suspicious? Isn't it common for the marketplace to avoid competition when possible? Sometimes directly colluding, sometimes indirectly?
I would guess that is because the cost of delivery is very high.
There was a good thread on this topic a year ago: https://news.ycombinator.com/item?id=23216852

That and Matt Levine's take on it ( https://www.bloomberg.com/opinion/articles/2020-05-18/the-un... ) posit the thesis of an entire industry that evolved incorrectly and artifically due to near-zero interest rates and arbitrage.

The cost to deliver meals is high.
So competitors agree behind the scene and nothing change.
Not to mention that this just shifts costs to other fees like marketing.
I’d rather that and keep the restaurant afloat. If it’s too expensive, maybe the issue is DoorDash itself and they should lower their profit expectations. It’s easier now for people to actually dine out compared to during the height of the pandemic…
My point is that this doesn't necessarily lower costs for anyone. DoorDash ect can move fees around so they aren't "per-order" fees.