Read the room.
Attn: VCs mad at @londonbreed about capping fees that delivery platforms can charge restaurants instead of the fact that there was an outbreak at a homeless shelter that may kill dozens of people & overwhelm our still stable yet precarious medical system.https://twitter.com/Jason/status/1248800857463746560 …
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correct. which makes delivery less available.
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Or delivery cos find a way to be cheaper, the option no one in this thread wants to acknowledge can happen. Maybe start with non delivery payrolls and expenses like cutting all marketing. Lord knows acquisition just got cheaper!
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If I’m a price sensitive lower middle class person who was already finding deliveries too expensive, I will now go out to get food for my family because companies started passing more fees to consumers.
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Which is not ok and has to be minimized to control spread of disease. You’re making my arguments for me, thank you! This is the problem, no one should have to go out to afford to eat safely.
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There are significant menu costs to getting back to the same outcome they had previously set up. So it should be disruptive enough to take a few marginal places off the market. It would be interesting to see what happens in this space if politicians pass price transparency laws.
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Yes, that is exactly right. Consumer prices will go up. As Keith says, it will hurt the delivery business (hurt gig workers) and push more consumers to leave their apartments and break quarantine (>CV19 risk). Also expect restaurant revs to drop as ppl buy more groceries instead.
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Early results are in. Exactly as predicted. Pretending many consumers won’t change behavior with increased fees was wishful thinking. : https://www.protocol.com/delivery-commission-caps-uber-eats-grubhub … (Not that you were saying that but critics were)
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