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Happy to see the City take action. Bc of my liquor license work, this has been one of my pet issues. Most ppl have no idea how predatory and shady the companies are. Most will be surprised reading @emilyopilo's article that the avg commission charged restaurants is 30%(!) https://twitter.com/MayorBMScott/status/1339191310759194626
As ppl, in an honest attempt to support local restaurants, have started ordering out from small eateries, it should be trumpeted that a chunk of the money is going to the app service--not the local business.
While there's a benefit to help restaurants being able to sell to a wider base wo having to incur costs & logistics of delivery, the apps often req restaurants to sign contracts w anti-competitive “No Price Competition Clauses” requiring them to keep same prices across all ...
food delivery apps & in person dining. So restaurants are unable to charge more for delivery to account for the higher delivery fees and lose out on add'l sales from drinks, desserts, etc. And can't offer discount for ordering from the restaurant directly
https://www.courthousenews.com/wp-content/uploads/2020/04/Food-Delivery-Antitrust.pdf
https://www.courthousenews.com/wp-content/uploads/2020/04/Food-Delivery-Antitrust.pdf
and many restaurants only sign-on after getting shaken down by the apps who've set up call centers to orders from apps then call restaurants directly where they're picked up by a driver
https://www.erinkimberlywade.com/letter-to-matt
https://www.erinkimberlywade.com/letter-to-matt
So even if there are logistics costs to setting up an app and hiring drivers, it's unclear if the losses they are sustaining are real and due to marketing and engaging in deceptive practices, or just incurred on paper. https://www.bloomberg.com/news/articles/2019-08-08/uber-created-a-6-1-billion-dutch-weapon-to-avoid-paying-taxes
To the extent they are taking real losses, it does not appear that it's bc extra money is going to drivers, don't make out well bc as independent contractors, they are responsible for both halves of payroll taxes;unlike w-2 workers where employer pays 1/2)
https://payup.wtf/doordash/no-free-lunch-report
https://payup.wtf/doordash/no-free-lunch-report
Even more deceptively, services are hijacking restaurant numbers on Yelp. So if you look up your fav eatery on yelp and call in an order thru their platform to pick up, your call is routed thru GrubHub, which charges the restaurant a fee even for takeout! https://www.vice.com/en/article/wjwebw/yelp-is-sneakily-replacing-restaurants-phone-numbers-so-grubhub-can-take-a-cut
Restaurants also get charged for calls routed through the app service even if you're not calling to place an order, just to ask a question about a menu item and then hang up, or if calling back to check on the status.
https://www.phillymag.com/news/2019/01/04/grubhub-lawsuit-tiffin-indian-restaurant/#:~:text=The%2520Wharton%2520graduate%252C%2520who%2520%25E2%2580%259Csparked,a%2520%25E2%2580%259Cscheme%25E2%2580%259D%2520involving%2520%25E2%2580%259Csham
https://www.phillymag.com/news/2019/01/04/grubhub-lawsuit-tiffin-indian-restaurant/#:~:text=The%2520Wharton%2520graduate%252C%2520who%2520%25E2%2580%259Csparked,a%2520%25E2%2580%259Cscheme%25E2%2580%259D%2520involving%2520%25E2%2580%259Csham
Moreover, even for the established restaurants that have followings and would never need a third-party delivery platform for marketing, like @NachoMamasMD or @JimmysSeafood, the app can pay for an ad on the google profile, catching ppl who google them for the url & taking sales
Places like @JimmysSeafood, that have online ordering directly through their website are further hurt by Google & delivery app ads, because the button to "Order Online" doesn't take you to their website, it takes you to a separate site run by Postmates, getting Postmates a fee
Even the info listed for free can hurt restaurants: eg, @bluehilltavern appears to ended their agreements w the apps, while accepting takeout orders through their website But if you click on the google DoorDash link for delivery or pickup, the listing falsely says they're closed!
Good alternatives to the better known delivery apps https://twitter.com/BaltBizOnline/status/1341352814904287232?s=19
