Why should it be illegal? Makes no sense to me. As long as the business is not discriminating based on class it should be ok.
While that’s what you prefer, the market (most other users, including whale spenders) doesn’t care to know the actual cost.
That is what large corporations want and in the US especially they are the ones that write the laws.
But those online retailers are supplied by the same distributor who is supplied by the same manufacturer.
- ManufacturerA -> (Amazon|Walmart) -> Customer
- RestaurantA -> (Pickup|Doordash|Uber) -> Customer
> I'd prefer the overhead to show up as its own line item, rather than obscuring the actual cost of the service.
Me too. Especially that they already ALSO add a service fee in many (most?) locales, in addition to the delivery fee and the tip.
- Item priced 30% higher
- Delivery fee
- Service fee
- Tip
There is another analog for this, too, though: some retailers indeed would have more or less expensive prices for the same thing when ordering online versus in-store. I think the argument that it isn't unprecedented is pretty solid.
Despite not being entirely unprecedented, I'd still prefer to see this practice ended for food delivery services so it is easier to see the actual true overhead of food delivery services. It really does feel a bit manipulative the way it is right now.
I’d be very curious what the conversation is between them. I highly doubt DoorDash negotiates with every restaurant on their platform and wouldn’t be surprised to discover they just tack it on independently. I could see that raising some interesting questions.
All of this is predicated on “ifs” and assumptions, so feel free to throw it out. Just kind of musing here lol
That is not correct. Doordash takes a 20-30% commission on each sale, so businesses preemptively increase the prices to offset that. They're not forced to and doordash isn't doing it for them. But, you know, they're still effectively "forced" to if their in-store prices don't have great margins to begin with...
Customers are cheap and they're (partly) to blame. My theory is that Amazon conditioned people to view delivery as a free commodity and pizza places who had delivery baked into their model cemented it.
So if Doordash listed a delivery fee that covered their true cost of delivery, customers would balk. So they instead have to find creative ways to get enough. Maybe it's changed and Doordash cracked the secret, but when I'd looked into it years ago these companies barely got by — many of them actually losing money.