Summary of Key Points
The low-cost convenience offered by the delivery industry may seem like a win-win situation for both consumers and platforms, but in reality, it represents a hidden transfer of costs. Platforms use algorithmic traffic rules to shift the burden of subsidies and competition onto small and micro-food businesses. These merchants, in order to maintain their orders, are forced to sell at a loss, resulting in drained profits and even reduced quality of ingredients that can lead to food safety issues. The new regulations aim to cut off this abnormal cost transfer and restore a healthy industry where businesses can make a profit and consumers can eat with confidence.
Detailed Explanation
1. The Truth Behind Low-Cost Convenience: Who Really Pays the Price?
The cheap hot meals and discounted late-night snacks you order may seem like a bargain, but the money for these “discounts” does not come from the platforms or capital; instead, it is borne by the small food businesses on the streets. While platforms claim to be benefiting the public, their true intention is to shift their competitive costs (such as subsidies and customer acquisition expenses) onto these smaller businesses through traffic algorithms. For example, discounts and flash sales often result in losses that the merchants have to bear, with the platforms using traffic as a lure to encourage participation.
2. How Algorithms Force Merchants to Lower Prices
Platforms do not explicitly say “you must lower prices,” but their algorithms act like an invisible force: businesses that offer more discounts or participate in more promotions appear higher in search results and receive more orders. If merchants do not offer discounts, their traffic drops sharply, leaving them with no business. Small merchants have no choice but to suffer losses in order to maintain orders; what seems like “voluntary participation” is actually a compromise with no other options.
3. Why Are Small Businesses More Vulnerable Than Chain Brands?
The same low-price strategies affect chain brands and small businesses differently. Chain brands have the advantage of scale and can negotiate terms with platforms—perhaps sharing part of the subsidy costs or using promotions as a marketing tool without affecting overall profits. Small merchants, however, have no bargaining power and must bear all the losses. For instance, while a chain burger restaurant might only lose a few cents on a discount promotion, a small noodle shop could lose several dollars per order, which is unsustainable in the long run.
4. Food Safety Risks Behind Low Prices: It’s Not About Poor Merchant Practices
Why do ultra-low-price deliveries often have quality issues? Because merchants’ profits are squeezed to the point where they can no longer afford to maintain high standards. Fixed costs like ingredients, rent, and labor cannot be cut, so they resort to compromising on quality—using cheaper materials, reducing portions, or simplifying storage methods. The decrease in food quality is not due to dishonesty but a result of financial pressure.
5. Can New Regulations Solve the Problem?
The newly introduced regulations do not aim to eliminate discounts but to require platforms to bear the costs of competition. For example, rules prohibit algorithms from forcing merchants to offer discounts and stipulate that promotional costs must be borne by the platforms themselves. This means that if platforms want to offer subsidies to attract customers, they must pay for them out of their own pockets.
Changes are inevitable in the industry: poorly managed businesses that rely on price cuts and quality sacrifices will be eliminated, while those that focus on quality and compliance will be able to make reasonable profits again. This is not about raising prices but about aligning prices with the true costs of ingredients, labor, and delivery. Only when merchants can make a profit can food safety be ensured, and consumers can eat with peace of mind.
Final Conclusion
The “low-price feast” in the delivery industry should come to an end. A healthy industry is one where all parties can earn what they deserve. The significance of these new regulations is to bring this bubble-like prosperity back to reality, ensuring that deliveries are both enjoyable and safe, with prices that reflect the true costs involved.