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.
I respectfully disagree. It’s unchartered territory, but it’s the future of fast food. Eventually, the restaurants and third-party apps will find the right balance. Third-party apps must work with small businesses though. Otherwise, you will see major consolidation in the space.
I no longer use these delivery services and have started to order directly from the restaurants.
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