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0 pointsSpivak4y ago0 comments

Of course not, I also wouldn't pay 20-40% more for free two day shipping or 30% more for free food delivery over $12, but nonetheless Amazon and DoorDash are able to take that much of a cut from sellers and restaurants.

You miss the fundamental thing which is that the charge is specifically for publishers for a reason. It's because it absolutely is worth 30% to every business who wants to reach a lucrative market.

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lostmsu4y ago

> DoorDash are able to take that much of a cut from sellers and restaurants

You are building a perfect argument against Apple here. As DoorDash rates grew I stopped using them less and less and started driving to the restaurants myself. And DoorDash rates are still far cry from 30%.

runako4y ago

Reminder of the risks of generalizing from one's personal experience, quite especially if one has an HN account. DoorDash revenues & delivery volume show that more people are placing orders, and for more money.

And this is for basic delivery, where many buyers will be a short drive away and could in theory have placed a 1985-style pickup order. There's no captive element like an App Store.

https://s22.q4cdn.com/280253921/files/doc_financials/2021/q3...

lostmsu4y ago

From your link: "30%+ M12 Customer Retention"

If I read this correctly, at least 60% of users stop using DD after 1 year.

SpivakOP4y ago

You have it wrong. In addition to the fees DoorDash charges you they also charge the restaurant ~20% revenue behind the scenes. Amazon charges ~8-45% (depends on the product) behind the scenes to the seller in addition to your prime membership.

The argument “would you pay some percent more” is somewhat meaningless because if Apple thought you would pay 40% more they would already be charging that and charging the publisher 30%. Two sided markets mannnn.

lostmsu4y ago

> In addition to the fees DoorDash charges you they also charge the restaurant ~20% revenue behind the scenes.

I don't think the point is wrong though. You can bypass DoorDash both as a customer (using other service or going personally) and the restaurant (by having online ordering on another platform).

Bellamy4y ago

Strongly disagree. 30% cut is a robbery that only a monopoly can get away with.

SpivakOP4y ago

The Windows store charges 15%/30%, Xbox in-game purchases are a 30% cut for digital games. PlayStation in-game purchases are a 30% cut for digital games. Google Play IAP is a 30% cut. Same with Nintendo digital games. Same with Steam.

Surely they all can’t have monopoly power? Is 15% of revenue suddenly not monopoly power? Would you still feel forced to pay it if it was 50% or 75% or would you just leave iOS?

dskloet4y ago

There is no difference between the customer paying extra and the seller paying extra. There is an amount the customer pays and an amount the seller receives, and the difference is what is paid extra.

j / k navigate · click thread line to collapse

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lostmsu4y ago

> DoorDash are able to take that much of a cut from sellers and restaurants

runako4y ago

And this is for basic delivery, where many buyers will be a short drive away and could in theory have placed a 1985-style pickup order. There's no captive element like an App Store.

https://s22.q4cdn.com/280253921/files/doc_financials/2021/q3...

lostmsu4y ago

From your link: "30%+ M12 Customer Retention"

If I read this correctly, at least 60% of users stop using DD after 1 year.

SpivakOP4y ago

lostmsu4y ago

> In addition to the fees DoorDash charges you they also charge the restaurant ~20% revenue behind the scenes.

I don't think the point is wrong though. You can bypass DoorDash both as a customer (using other service or going personally) and the restaurant (by having online ordering on another platform).

Bellamy4y ago

Strongly disagree. 30% cut is a robbery that only a monopoly can get away with.

SpivakOP4y ago

Surely they all can’t have monopoly power? Is 15% of revenue suddenly not monopoly power? Would you still feel forced to pay it if it was 50% or 75% or would you just leave iOS?

dskloet4y ago

There is no difference between the customer paying extra and the seller paying extra. There is an amount the customer pays and an amount the seller receives, and the difference is what is paid extra.

j / k navigate · click thread line to collapse