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DoorDash Rolls Out ±10% Regulatory Response Fee To Comply With New Government Laws
The Washington Gazette is your source for the latest political news and national stories as they happen.
www.thewashingtongazette.com
Your wallet may take an extra hit the next time you order dinner via the popular food delivery app DoorDash, courtesy of your helpful local government officials. That is, if you live in St. Louis, Chicago, Seattle, or one of the other 57 localities where DoorDash customers just got hit with a $1 to $2.50 “regulatory response fee” on every order.
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Government Regulators Get Involved
Busybody politicians quickly complied.
“With the rising dependence on food delivery through the pandemic, several dozen cities, counties and even states have pushed back by capping commissions at 15 percent of the total cost of orders — what DoorDash can charge restaurants for generating a sale and delivering food,” NBC News reports.
NBC reporter Cyrus Farivar found “68 localities that have passed such caps.”
The good news is the customers will know the fee is caused entirely by government regulation.
As economist Pers Bylund has explained, regulation “creates winners” by “propping up incumbents.” However, he points out that it “creates losers” by “redistributing value and economic capabilities to those favored politically” rather than through merit-based market competition.
“Needless to say, this inequality is not beneficial for society overall, but only for those who are favored,” Bylund writes. “It is the creation of winners by creating losers.”
Beautifully put.
Consider the Bay area real estate market where government regulation prevents new housing units from being built. The only winners are existing property owners. The losers are the builders who can't build and all of the people who want to buy property in the area.