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Comment by SoftTalker | Hacker News Reader

The supermarket where I shop has a specific checkout station for delivery drivers. I have never seen one in a normal checkout line (not that it might be very obvious, especially if they were shopping not just picking up an order).

What I don't understand is why DD gets any cut of the store's profit. They should be paying retail like anyone else, and their customer paying for the delivery costs.

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> What I don't understand is why DD gets any cut of the store's profit. They should be paying retail like anyone else, and their customer paying for the delivery costs.

It's a finder's fee, a very old and ordinary concept in business. The more sales you can bring to a company (or could divert to competitors), the more skin in the game you have. That's not to say I think these companies aren't in some ways anticompetitive to the detriment of merchants and DIY shoppers.

> 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

These grocery stores are all going to continually lose market share to Amazon, Walmart, etc. as online ordering increases. The pricing of in person grocery stores is outrageous and the experience shopping at them is annoying. I hope to see many go out of business sooner than later so we can have better businesses take their place!

You can’t really refuse their business if they want you to be on the app. They will just add you and direct the driver to pay with the issued card like any other customer. The consumer still sees it as “you accept DoorDash orders” though. Then the sales pressure starts since they have your customers.

What pressure? They are going to threaten to delist you? Disappointing their own customers in the process?

The usual marketplace tactics. Dashpass and promotional feautes, search rankings, etc. Well documented.

The supermarket I worked at had a split system. Our internal delivery people had their own checkout area, but it wasn't open 24/7. Doordash and the like had to go through the regular lines regardless.

because they can get away with it and some VCs say best companies dont have customers, they have hostages.

That kind of thinking is why people call them vulture capitalists. It’s only true until it’s not. if your supplier is treating you like a hostage, you’re probably not very loyal.

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