It’s a small matter compared to our bigger problems, but it tells us much about the mentality of much of our leadership.
Chicago Mayor Lori Lightfoot wants to force services like GrubHub and DoorDash to disclose what they charge restaurants.
“Inordinate amounts of fees” charged by delivery apps cut into restaurants’ “very tight” margins, she said.
Think about that. The idea is basically to force disclosure of one cost element that goes into a restaurant’s profit margin.
If that makes sense, where’s the end to it? Why stop with restaurants and apps like GrubHub? Since Lightfoot is concerned about businesses with tight margins, wouldn’t it make sense for many things?
How about landlords, who are also getting squeezed right now along with renters. Should we force property managers and banks to disclose how much they are charging apartment owners so we can judge what’s “inordinate”?
Or how about grocery stores, which have notoriously tight margins. Lightfoot wants to help them expand into underserved parts of the city. Why not a rule forcing food producers to tell us the wholesale prices they charge groceries stores? “Hey, Hostess company, my Twinkies cost too damn much. Tell us how much you are charging Jewel for them so I can judge if that’s fair.”
As the economic crisis from the shutdown deepens, perhaps into a depression according to many experts, we should count on seeing more and more politicians with instincts like Lightfoot’s popping up on more and more matters. Those instincts are for micromanagement by politicians — statism — and they are usually unsound.
It’s not disclosures about GrubHub pricing that Lightfoot should be focused on, but the city’s finances. She’s long overdue in sharing numbers about the damage to city revenue: How far off of budget is Chicago at this point? The State of Illinois gave us an estimate, and so did Cook County.
Nothing for Chicago. Too busy worrying about GrubHub.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Keep voting liberal… Keep ruining economies
YOU CANT COUNT WHAT A RETAIL STORE CHARGES FOR PRODUCT UNLESS YOU CAN INCLUDE ALLL OF THEIR EXPENSES INCLUDING UNION EMPLOYEES
If nothing else it at least draws attention to the usurious rates these delivery companies charge. I have gone to a few places for takeout solely because I know their margins are tight and I told them it was so they could keep the 30% the companies charge them. Rather than legislating rate disclosure, she needs to walk to her local joint and just order a meal to go.
Hey Lightfoot, My government services cost way too much. I mean WAY, WAY, WAY TOO MUCH.
How is it that they are paid 3 times what the private sector gets paid?
They have benefits that only GOD could afford.
If I do not like the cost of something I do not have to buy it.
When it comes to HIGH TAXES I MUST PAY. If I do not like I can move it what I have been told by government employees.
I’ve had a chance for this to ruminate in my head and I’ve come to the conclusion that this all again is just another version of the progressives typical situation: We progressive can solve with government the very problems that we alone created with our abhorrent behavior. You see, grubhub is a progressive, arrogant, rent seeking silicon valley company. The entire concept is little more than an interactive coupon mailer where the customer uses grubhub to place the order to the restaurant instead of, you know, calling the number in the ad or looking at the menu online. The company… Read more »
Where is the disclosure of the extorted money you the city call “taxes”? Also, a disclosure of how massively government taxes and regulations cause price increases.
Again, lady, stay in your dang box. You are here to not screw things up – you lack the basic understanding of economics, finance, and free markets to engage in these issues… Elected in a runoff with the lady who wants to tax those dreaded sugary beverages… And the artificially sweetened ones, as well. Dear Ill dems (no pun intended – well…), enjoy your depression because you thought you could outlast math…
She’s probably doing this in the name of stopping your typical price gouger after a hurricane who is selling $500 generators for $2000 a pop. But then again Harmon asking for a pension bailout in the midst of a pandemic isn’t much different than the guy gouging you on generators.
There’s more to this issue too. Among other things, even if your restaurant is not partnered with Grubhub, they still list your menu.
https://www.sfreporter.com/news/2020/04/17/vinaigrette-owner-slams-grubhub-in-open-letter/
I agree that listing these fees is overkill. Word of mouth is spreading that Grubhub fees are egregious. Restaurants are beginning to dump the app for other providers with lower fees. Seems like the market is figuring this out on its own.
Wow, lots of great points here. Government focused on…government? It almost seems quaint. Instead they spend every day thinking about how they can bully the private sector with increasing BS rules and control. And most of these people have never run a business. They are lifetime public sector people who relish the idea of commanding private sector businesses who just want to be left alone. Progressives don’t trust free markets. Hell, they don’t trust people to engage freely in just about anything. They want to control every interaction between the business world and their customers. These people don’t fundamentally believe… Read more »
A case of Matt reaping what he sows. Who knows, maybe he’s on board with this?
Eventually, the left eats its own.
https://www.forbes.com/sites/briansolomon/2016/11/10/grubhub-ceo-attacks-donald-trump-employees-hateful-attitudes-resign-matt-maloney/#7ee26b5d59ef
Thanks for the reminder on this!
This guy should not be running a company. He’s too emotionally volatile, and sending virtue signaling, deranged emails to blow off some steam to all company employees is reckless behavior. Get some control of yourself, son.
And now the wolves turn on him, and he’s not liking it.
Good. Please send more emails lecturing the rest of us about how we should think, and what our “values” should be.
Eat it, moron.
We criticized him harshly for that here, too, at the time, and we were reprinted in WSJ. https://www.wsj.com/articles/trump-vs-political-correctness-1479233123 For the record, should note that Matt says he was actually trying to make a nonpartisan statement so the criticisms were unfair. He’s a wonderfully talented guy but I think he did make a mistake on that.
Fair enough, but it’s a sign of youthful indiscretion to inject politics into a company-wide communication, just because you are personally frustrated.
For that mistake alone, he does not have the chops to be a CEO.
He also made a huge mistake in telling everyone that Grubhub would eliminate restaurant commissions for awhile, but later “clarified” that to just mean they would take the fees a month later. These are just unnecessary forced errors, and also further attempts at virtue signaling without actually sacrificing anything.
He has a lot to learn.
A CEO putting TDS on display in a company wide email is disgraceful. The board should be demanding his resignation now.
if illinois is the titanic: jb pritzger is captain smith with his hand on the ships wheel mike madigan is white star line chairman bruce ismay telling him what direction to go and how fast springfield republicans are the radio operators on the other ships in the area warning about icebergs pritzgers progressive state income tax is the iceberg transgender rights gun control cellphone driving laws and sanctuary city policies are the deck chairs the low and no income people in illinois on medicaid food stamps unemployment and other state aid programs are the passengers in steerage and we all… Read more »
Point aside, I’ve noticed a large amount of people who spell Pritzker’s name “Pritzger.” Is this just a common misspelling, or some sort of secret ad hominem variation of his name? Can someone fill me in?
I’ve made the mistake, too. Just an accident.
I also make this mistake. Even when I notice the error I don’t care. The man doesn’t deserve the honor of correct spelling.
Me too. Thanks for the note. Will correct. Even this POS deserves to have our common sense, rational, fact based vitriol spelled with accuracy. Watching his flapping jowls on the news now… You would think he was paid by the word… So much noise and so little sense.