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.
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