
Uber Eats in Australia forced to amend contracts with restaurant owners - mb_72
https://www.abc.net.au/news/2019-07-17/uber-eats-amends-unfair-contracts-accc-probe/11316714
======
tmd83
Is almost all big size tech startups effectively focused on becoming modern
day cartel under the guise of improving the world?

------
bash-j
The thing I don't understand is 35% commission fees to the restaurant + $5
delivery + fees to the delivery driver. I'm guessing payment processing would
be a few percent, but what makes up the rest?

~~~
keenmaster
It depends on user behavior. If the average Uber Eats customer opens the app
then decides on a restaurant and not the other way around, Uber has a lot of
bargaining power. It can tell restaurant owners “hey, you won’t make this
revenue without us, so we’ll charge 35%. This is our access fee for that
dollar on the sidewalk.”

The restaurant can say “screw you and your high fees, we’ll exclusively use
[Grubhub clone] instead,” but they will most likely lose the Eats customers.
Theoretically, in the long run, large platforms should compete more on price
and extract less from customers and restaurants. This will only happen if
customers migrate to a lower cost competitor.

There are two hurdles to price competition. One is that platforms are sticky
and have psychic switching costs. The other problem is that customers don’t
observe the fees which are charged to restaurants. They don’t know how much of
the menu price reflects the cost of actual food vs. how much is Uber’s
merchant fees.

