Re:DoorDash S-1
by conanbatt on Friday November 13, 2020 @12:23PM
(#25084723)
I think the economic analysis of tipping is pretty complex. Cash tips allow for a lot of tax avoidance, which makes a huge difference with payroll taxes. Also the price differentiation effect is very good for businesses, they increase revenues (not only the "split" between tips & wages)
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Re:DoorDash S-1
by lotsofpulp on Friday November 13, 2020 @03:49PM
(#25087300)
It’s not complex, just price obfuscation, price discrimination, and tax evasion. All advantages for the seller and disadvantages for the buyer.
The state not collecting in the transaction is a benefit for both parties, because you can buy/sell at a lower price.
Price discrimination means you can sell at a lower price to customers who might will not buy otherwise.
There is no price obfuscation.