Re:People think they're calling restaurants directly but Gru...
by lakerz16 on Tuesday June 02, 2020 @08:54PM
(#23398453)
If GH takes a 25% cut, then they need to be adding 25% more revenue to the takeout market. I would bet good money they are not.
Instead, they are paying for ad space to siphon the traffic of already hungry customers looking to order from a restaurant.
GH then shows the numbers to the restaurant and says "Look how much business GH brings you. You need to pay us for this"
In many cases they are extorting restaurants over what would be organic web traffic. In these cases they are not adding new revenue to the industry, and are instead choking the restaurants that already operate on thin margins.
Instead, they are paying for ad space to siphon the traffic of already hungry customers looking to order from a restaurant.
GH then shows the numbers to the restaurant and says "Look how much business GH brings you. You need to pay us for this"
In many cases they are extorting restaurants over what would be organic web traffic. In these cases they are not adding new revenue to the industry, and are instead choking the restaurants that already operate on thin margins.