Comment by jedberg
3 hours ago
> What I don't understand is why DD gets any cut of the store's profit. T
In theory it's because that customer wouldn't be purchasing without DD. In practice it's a shakedown.
3 hours ago
> What I don't understand is why DD gets any cut of the store's profit. T
In theory it's because that customer wouldn't be purchasing without DD. In practice it's a shakedown.
The stores often charge higher prices on app for the same items. If there's a sale on items, you won't likely get them on the app. You can say it's a shakedown but you can always refuse DoorDash business and just operate like every other place that doesn't use it. It's not end of the world.
Sure, you could operate without DD. You can also operate without advertising, but it makes it a lot harder to reach customers.
Elsewhere in this post a store owner talks about how DD is a necessary evil. How they have convinced a big chunk of customers to only use DD to order food, and you will lose out if you aren't on the platform.
It's a prisoners dilemma. The total market share remains the same, but if only one grocery store was on DD they'd be at an advantage over those who don't