Food delivery with third-party apps like Grubhub and Uber Eats is booming, but no one's making money. Here's why their business is broken.
But as delivery and takeout have become lifelines for struggling restaurants, the stakes of this fight are higher than ever before.
Business Insider spoke with John Schall, the owner of Jefe's Taqueria in Cambridge, Massachusetts, and a former economics instructor at the University of Massachusetts, Boston. Schall said that by cornering the delivery market, platforms have essentially developed an oligopoly like many utility companies. The difference, he said, is that utility prices are regulated by the government.to get electricity," Schall said.
Joe Irick, who owns Pizza Pub in Mount Prospect, Illinois, said that he believes delivery companies incentivize restaurants to pay for promotions by placing restaurants that don't opt into promotions farther back in search results. "If you're not doing promotions, you're not going to get anything from it. I think they're just going to bury you way down." was filed against Grubhub, spearheaded by Colorado restaurant Freshcraft.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Local lawmakers provide struggling restaurants with temporary relief from food delivery feesWith the survival of many independent restaurants hanging in the balance, lawmakers are stepping in to limit how much third-party delivery companies like DoorDash and Grubhub can charge restaurants for orders for the duration of the coronavirus pandemic.
Read more »
Pivot: Uber offers to gobble up GrubHub, Elon Musk is “Re-open America guy”, and a prediction on mergers in digital media on Apple PodcastsOn the latest episode of Pivot, profgalloway tells karaswisher he thinks working in an office will go from being a liability to a perk: “Young people are gonna differentiate jobs based on who has an office that’s been vaccinated and will bring them in.”
Read more »
Business travel after coronavirus: Top CEOs weigh in on changes - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Food delivery driver on self-isolating from her kids to work during COVID-19 pandemicFood delivery driver on self-isolating from her kids to work during COVID-19 pandemic.
Read more »
Rep. Justin Amash says he will not mount a third-party run for president
Read more »