services like door-dash are literally built on a concept of a sucker pays more. you order a meal that costs $10. total charge comes to $25. then delivery worker made $5 on that order. + the delivery worker expects a tip.
which means the company sees both the delivery worker and the person who ordered as suckers. no wonder ride-share companies jumped onto food-delivery.
I don’t think paying someone to perform a service for you makes you a sucker.
I’ve never used DoorDash (and am pretty unlikely to), but if I did, I would look at as paying someone for a service they provided rather than simply “paying more for the item” (and expecting someone to wait on me personally for free?).
It's been years since I used DoorDash, so I don't remember: Are you saying they don't charge any fees other than the (inflated) price of goods?
I'd rather the price of goods be fixed, and they tell me what the delivery fee is.
It’s not like they hide anything about what they’re offering. They advertise service X for price Y and that’s what they deliver. Seems fine. If you don’t think Y is worth it for X then don’t use it.
Now, the part where they use tips to offset driver pay is evil and people should be in prison for it.
Well, they hide the fact that the food prices are marked up for one thing. Even if you pick up yourself, menu prices in DoorDash are at least 20% above the restaurant’s posted prices. That undisclosed upcharge comes on top of the delivery fees and service charges they do disclose — but only after you have made your order.
I don’t see a problem with that. They show a price for a product. They have no responsibility to inform you that a lower price for the same product is available elsewhere.
It’s still rude, have you no shame?
Oh come on, all of the service personnel survive on the tips alone just fine, like the cashiers, and the nurses, and the receptionists do. Right?
Most states allow tips to be deducted from wages down to sub-minimum wages for for most tipped workers. Which sucks to be clear, just saying it's not unique to ride-share drivers.
That’s bad and should be considered theft. But what DD did is even worse. They didn’t just reduce pay, they hid what they were doing and didn’t even show a tip to the driver unless the tip was more than the guaranteed pay. And they did this to the tune of over sixteen million dollars.
> literally built on a concept of a sucker pays more
Or they're built on the idea that they can sell convenience to people and make a lot of money doing so.
It's not so different from a lot of other businesses. First class and main cabin in a flight gets you the same airplane, the same destination the same travel, but slightly different chairs and some food. Is anyone paying for first class suckers? What about if I buy a skip the line pass at a theme park? Am I a sucker because I paid more than the base admission price? Or is it a trade that I'm willing to make because I have excess income and want to actually ride the rides instead of standing in line all day in the heat?
Why do executives have executive assistants? Are businesses all suckers?
I know I'm getting ripped off by doordash, but I'm hungry and I'm busy and the harm of getting ripped off just a bit is way lesser than the time it'd take me to get or prepare food myself. That $10 hamburger that I just paid $25 for is outrageous, but the 30 minutes I saved is worth the $15. If you make mid-six figure income like most of big tech, that's a small small price to pay for time.
Skip the line passes are an obvious sucker play; they oversell tickets to the park so that people can go on like 1 ride every 4 hours, then charge again to actually be able to use the ticket you already bought (and simply don't deliver service to the others). Do you think they are unaware of the capacity at which reasonable latencies can be maintained?
In case you, or anyone else, actually care or are interested, there's a great deep dive video on the history of "FASTPASS" by the youtube channel Defunctland.
The Shapeland reveal made me jump out of my chair.
"It's not so different from a lot of other businesses. "
It's quite different and that's the point.
The issues beyond 'apparent value creation are':
1) asymmetries in power between different actors that induces some to make ill advised actions - passing off hidden costs and especially risks
2) externalisations - aka damaging the environment, labour regs (which exist due to 1)
3) misrepresntations in value to end customer - dark patterns, hidden fees, risks not apparent in the transaction.
Entire industries would not work if we had to properly account for a lot of things.
"I know I'm getting ripped off by doordash, but I'm hungry and I'm busy and the harm of getting ri" <- it's not just the 'price' that is high and you're 'willing to pay' - that's fine.
That's definitely not 'rip off' because you're not coerced in any way for that - that's just 'high prices.
The $10 bottle of water at an event <- that is a 'rip off'.
It's all the other things in the system that make it problematic.
Last mile delivery by poor people almost should not exist as a business because it depends on externalizing too many things.
If they provided healthcare, vacation, job security, didn't force people to run around, all that stuff that removes the 'power and information asymmetry' - and then - it still works as a business, fine but it generally wont.
Some businesses are structurally unsound, and people invest in them to take advantage of broken systems (social, regulatory) at the margins. Gambling, day trading. A lot of zero-sum stuff.
Now 'Robot Delivery' - that's an entirely different prospect.
That's an attempt at real value creation. If we got our act together, everything could be delivered by little robots - today - already in 2026. It would reuire a lot of coordination.
I think there's a business there, for sure, but the markup is definitely a problem for some. I think below a certain order volume it might be hard to get enough delivery people at the ready. As they ask customers to absorb more of the cost the volume could drop. If they don't have enough delivery people then that adds to the delivery time which makes it less and less worth it, at least to me.
I really dislike the unreliable delivery times. 99% of the time I just use the apps, or more likely the restaurant's site, to place the order and pick it up myself.
I have the time to do this though, so maybe it's more valuable to busier people, like parents.
> That $10 hamburger
fast-rise sugar infested bun, non-organic antibiotic infested horrendous animal welfare beef, etc. - the BOM is well under $5, i'd think $3 at best. So, you pay $25 for sub-$5 bill of low quality materials (not good to your health with thus additional expenses down the road). Who is the sucker?
The guy who buys organic, an obvious marketing gimmick with zero scientific evidence behind it... Sorry, couldn't resist.
Fully understand you. I thought for long that way myself. My cat though for example clearly knew the difference :) With time i learnt it myself.
It's just a standard reintermediation play, inject yourself in the middle of a supply chain, and then once established squeeze the living shit out of both sides.
Also use exploitation of regulation (e.g. leveraging contractors via 1099s to access cheap labor and indemnification from liability) to your advantage .
this was the model of like 2/3 of the 'startups' in the 2010s.
I thought they were built on "time is money". If you make the equivalent of $70 an hour, do you care about spending $15 for someone to bring you lunch and save you 15-30 minutes of your workday?
It’s not just “time is money”, but also the convenience as well. Sometimes you’re sick and need a hot meal, or you’re busy helping someone, etc.
Edit: Spelling. “right” to “sick”.
It was kind of fun doing this math back when I was a freelancer. An hour saved would literally produce more money than the order cost. But really, it would have been better to save the money by making food ahead of time.
I've always struggled with this thinking. Yes, you have finite hours in a day and if you spend an hour going to get food then you can't necessarily also be doing freelance work. But if you planned on working 8 hours to earn X dollars, you can still work 8 hours after spending an hour going to get food and still make X dollars. Sure, that hour has to come from somewhere so maybe it's lost leisure time or an hour of sleep. I guess it makes sense if you're trying to work every waking moment; and I can appreciate that some choose to and some have to.
> Sure, that hour has to come from somewhere so maybe it's lost leisure time or an hour of sleep.
Well, if you value an hour of your sleep or entertainment less than $15 dollars (if, for instance, you like to cook), then sure, spend it on cooking instead. Many of people would rather not, and their revealed preferences show it pretty clearly.
Ya I dont get this argument. Takes me all of 2 mins to grab my lunch in the morning. It's also not a greasy burger that shortens my lifespan and physically disable's me.
The whole point of food delivery is for the occasions you can’t (e.g. sudden illness, or time management mishaps) or don’t want to (laziness/tiredness) cook or drive to grab a takeout. You pay a premium for the convenience, someone else takes care of it. Nothing wrong with that, no “suckers” in the general scheme.
The gig workers are still suckers because gig work sucks. But yes the service is most sensible for higher paid consumers.
...only because the company is committing wage theft to subsidize costs. I don't think it feels reasonable to say "Your employer has to meet certain wages, but they didn't so you're a sucker".
If you can't pay the wage you're required to then the whole house of cards starts coming down because now you can't create a large enough network to meet demand, which shrinks demand, which increases costs, which makes it accessible to fewer and fewer high paid consumers.
Like a lot of capitalism "it's better than starving to death in the streets" is the appeal of the job and nothing more. Anything else is a paid message brought to you by UberDoorHub.
Tony Xu spent three times as much time as the driver did, did he?
Except they increase the charges of the food also, so you are getting taken advantage of there as well.
This just translates to "anyone paying a margin on anything anywhere is a sucker."
You're definitely a sucker too, probably multiple times over.
The enshittification model, but with an extra step because they actually have to employ labor.
First they exploit their own gig workers, to make an unsustainably cheap product and corner users. Then they exploit users, to monopolize distribution and corner restaurants. Then they exploit restaurants, threatening to cut off distribution entirely if they don't get an increasingly large share of profits.
I was just ordering some food on Uber eats and noticed that my bill for 50 bucks of food came to $75 or something. So I decided it was wasteful and I'll drive and pick it up myself. I wasted half an hour of my life and driving at rush hour was also stressful. That wouldn't be worth it for 25 bucks but it turned out Uber somehow has a lower price than in person so that brought it down to 21 and then in the restaurant despite it being a counter place with no sitting they pressure you to tip way more than Uber app and I kind of autoclicked it, so my savings are down to like 10 bucks for 30 minutes of stressful driving and waiting in line.
I think the delivery charge is totally worth it, especially if you order multiple meals and make any amount of money at your job. You're just paying for convenience and I'm not convinced you're getting ripped off at all. Having some dude drive around town with your burger is expensive. If anything if the allegation is he is underpaid, it should be even more expensive.
Food delivery services offer convenience for a price. If I hire a courier service to bring some materials and tools to one of my electricians, it’ll cost me a minimum of $50.
I can pay a bit extra for food and $10 in tips and fees to have it delivered to me instead of spending half an hour driving to go get it myself. I know what I’m paying for and value the service they provide.
My time is more expensive than the $15 extra I pay for the food...who's the sucker.
I'm not paying for the food. I'm paying for them to bring me the food. Those are two different products.
Eh, the difference is that DoorDash is a logistics company performing a service that restaurants do not like running (delivery). It’s not a middleman providing no value
The problem is they use exploitative labor practices (as we're seeing here) and price-dumping funded by infinite amounts of venture capital. It sets customer expectations to unsustainably low pricing and it forces restaurants to either heavily subsidise their own delivery drivers to keep customer prices low or, because barely anyone can sustain that, to shut down their own delivery service and use <gig company> instead.
And that in turn gives doordash, uber eats and whatnot access to a lot of data - who orders what and lives where or which restaurant is doing good and which is struggling - that can be sold to third parties. Governments (ICE and other agencies have been caught to just buy data from aggregators), advertisers, credit reporting agencies, political parties, you name it.
Sure. As a customer the value that doordash et al provide is hard to understate. A single point of contact, a single set of credentials, a unified UI compared to what used to be a ton of never-updated garbage wordpress installs, reliable tracking... but as a whole, we all lose.
Doordash and grubhub are insane for single food purchases. But the fees are barely noticed when feeding my family of 5. We use it every other week or so just because of how chaotic school activity schedules can be. When we order sushi/chinese for the kids the bill before any delivery services is around $200 for enough food for dinner and another meal with leftovers. The service charge is like $7 and I make sure the driver gets at least $10 regardless of the distance. Cheaper than if we ate in the restaurant and were expected to give a 15-20% tip.
> Cheaper than if we ate in the restaurant and were expected to give a 15-20% tip.
You should run that experiment. Get two identical meals, one via delivery the other at the restaurant. Pay close attention to menu prices.
Depends on the restaurant, but each food item is typically more expensive in app (10-30%). And that's before they add fees, service charges, tips, tax, etc.
> services like door-dash are literally built on a concept of a sucker pays more
Strongly disagree with your entire narrative, one that it demonstrably disconnected from reality.
Nobody is forcing anyone --at all-- to use these services. Not one person. Not one company. Not a single law or mandate. If I want to use it and you don't, that's perfectly fine. If I, for whatever reason, want to pay a premium and you think it's stupid, that's fine too. Don't use it. I will. Simple as that.
What's the opposite of that? Obamacare. Mandated and forced on everyone. It's shit. It's three times the cost of the insurance we were all promised we could keep if we wanted to (and we could not, because Obamacare killed those plans). Etc.
See the difference there?
> Obamacare. Mandated and forced on everyone. It's shit. It's three times the cost of the insurance we were all promised we could keep if we wanted to
In a sense, I agree with this assessment, and I think it should be corrected. We should allow people to have the older, less expensive plans with their lifetime caps and preexisting condition exclusion. We'd need to work out the details on whether or not we would allow someone choosing those plans from coming back to the ACA plans in the future, though. Maybe for the right price it could work out. Definitely adds complexity, however.
If you think "high earners with company subsidized plans"(where I assume you fall based on the general demographics of this site, but correct me if I'm wrong) were the target audience of the ACA, you're right to be pissed. It was for the un/underinsured, and people with preexisting conditions.
But your comparison is wrong, because you can...elect to not use the service. You could pay less for less coverage (so like, buying food without paying for a delivery fee because you don't need the convenience). Also, the individual mandate was killed (sucking funding out of the whole program), so you could opt out of the service entirely.
Nobody is forcing you to have insurance (at a federal level).
See the difference there?
Sounds like you agree that suckers pay more.
> Mandated and forced on everyone.
Nope. It's a marketplace. Your above argument is perfectly applicable to it as well.