June 26th, 2024

Man makes money buying his own pizza on DoorDash app

A US pizza restaurant owner discovered DoorDash selling his pizzas at lower prices without permission. DoorDash conducted a trial without informing owners, sparking scrutiny over its business practices and CEO's controversial remarks.

Read original articleLink Icon
Man makes money buying his own pizza on DoorDash app

A pizza restaurant owner in the US found out that the DoorDash delivery app was selling his pizzas at a lower price than he offered, yet still paying his restaurant the full price. The owner, who had not authorized his business to be on the app, discovered this when he ordered his own pizza and noticed the price discrepancy. It was later revealed that DoorDash was conducting a trial to assess customer demand by scraping restaurant websites and offering discounted prices without informing the owners. Despite ordering multiple pizzas at the lower price, DoorDash continued to pay the full amount to the restaurant. The incident sheds light on the challenges posed by third-party delivery platforms and their business models, which often rely on heavy subsidies. DoorDash, backed by Softbank, faced scrutiny for its practices, while its CEO made controversial remarks comparing himself to Jesus in defense of the company's financial losses.

Link Icon 3 comments
By @politelemon - 4 months
The original post that BBC links to has more interesting details. https://www.readmargins.com/p/doordash-and-pizza-arbitrage

Is this actually legal or is it a gray area that nobody has challenged at all? All I'm seeing is the restaurants themselves suffering the most, or left holding the bag - and it even seems Yelp is knowingly aiding the deceivers.