Yea, I do wonder if this will shut the door on any future high growth independent startups in the space to be created locally.
DoorDash started their business doing exactly this in Palo Alto, and likely wouldn’t have been able to raise the funds or grow at the pace they did without this strategy.
On one hand, you could say good, these sorts of businesses are exploitative. But I’m not sure that the industry is a net negative as a whole, and this law could shut the door on a more sustainable model.
It seems like an agreement or explicit description of what is happening (the delivery service is providing the food, not the restaurant) is going to be part of any sustainable model.
DoorDash started their business doing exactly this in Palo Alto, and likely wouldn’t have been able to raise the funds or grow at the pace they did without this strategy.
On one hand, you could say good, these sorts of businesses are exploitative. But I’m not sure that the industry is a net negative as a whole, and this law could shut the door on a more sustainable model.