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Surge Pricing

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fohat.digs:

--- Quote from: TomahawkLabs on Thu, 29 February 2024, 10:10:26 ---
just for having the app on the phone?


--- End quote ---

Same reason there are "1st time" discounts on anything.
People usually choose to go back to what is most familiar or convenient.

Leslieann:

--- Quote from: TomahawkLabs on Thu, 29 February 2024, 10:10:26 ---Add the fact that if you want a preferred price you need to use the app for a lot of these places. The price is multiple dollars cheaper if ordered through the app. Makes you wonder why they want you to download an app. What are these restaurants seeing in value to save you multiple dollars per order, just for having the app on the phone?

--- End quote ---
The app shortcut acts as an advertisement, reminding you to eat there.

More than that though, besides the normal tracking now they can watch your buying habits, from them and others, it also lets them see where people are in relation to stores, allowing easier prediction of where to open new stores.  It's also well known that when you make it super easy to click and buy without thinking, especially when the app is right in your face every time you use the phone that you will tend to use it more and spend more. Same reason stores have "impulse aisles" at the checkout and why Amazon is so popular, it's fast easy and mindless spending.

Basically while each order may have less profit they more than make it up in more frequent purchases, market research and data sales.

Leslieann:
Well that didn't take long...
The blowback was swift and fierce (as it should be) and Wendy's has already killed this idea.

Frankly whoever proposed it and pushed it through should be fired for doing zero market research, grocery stores talked about doing this YEARS ago and the blowback was insane, they should have known better.  Just because Uber can doesn't mean YOU can. People like knowing what something will cost before they reach their destination, with Uber you can opt out before you buy and without having put any real effort, unlike driving to a Wendy's only to find you've been priced out by 15 minutes.

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