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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

California Law to Enforce Agreements Between Restaurants and Delivery Companies

12/30/2020

Effective January 1st 2010, delivery companies must have a signed agreement with restaurants and food merchants for them to appear on their aps.  DoorDash claims that 95 percent of its orders came from partnered merchants during the first three quarters of 2020.  UberEats claims 70 percent compliance during the third quarter.  PostMates may be at a disadvantage since they have only 16 percent of their 700,000 merchants signed to agreements, but the law may only require removal of 40,000 unpartnered merchants from their platform.

 

Generally legal and socioeconomic innovations emerging in California spread westwards and this will creating problems for delivery companies. This will be an additional challenge over and above the predicted decline following restoration of restaurant dining in a post-covid era.


 
Copyright © 2024 Simon M. Shane