M
MercyNews
Home
Back
Major Food Delivery App Developer Exposes Internal Practices
Technology

Major Food Delivery App Developer Exposes Internal Practices

Hacker NewsJan 2
3 min read
📋

Key Facts

  • ✓ The developer claims the app charges hidden fees to customers and restaurants.
  • ✓ Algorithms are used to provide optimistic delivery estimates, often resulting in late deliveries.
  • ✓ Internal metrics reportedly prioritize speed and cost-cutting over driver compensation.
  • ✓ The user interface is designed to obscure the true breakdown of costs.

In This Article

  1. Quick Summary
  2. Hidden Fee Structures and Revenue Models
  3. Algorithm Manipulation and Delivery Estimates
  4. Driver Welfare vs. Corporate Metrics
  5. User Interface and Transparency Issues

Quick Summary#

A developer for a major food delivery application has revealed internal practices regarding fee structures and delivery algorithms. The report indicates that the application applies hidden fees to orders, which are often not passed on to the delivery drivers.

Additionally, the developer explained that the app utilizes optimistic delivery estimates, which frequently lead to late deliveries. The internal metrics reportedly prioritize speed and cost efficiency over driver compensation and accurate timing.

The confession also details how the user interface is designed to obscure the actual breakdown of costs. These revelations provide a look into the operational strategies used by large delivery platforms.

Hidden Fee Structures and Revenue Models#

The developer disclosed that the application charges hidden fees to both customers and restaurants. These charges are often categorized as service fees or delivery fees, but the developer claims they are not fully distributed to the drivers.

The revenue model relies on these additional charges to increase profit margins. The application presents these fees as standard operating costs, though the developer suggests they are inflated beyond actual operational expenses.

Restaurants reportedly bear a significant portion of these costs, which affects their pricing strategies. Customers often pay higher prices without realizing the specific breakdown of where their money is going.

Algorithm Manipulation and Delivery Estimates#

The application uses algorithm manipulation to generate delivery estimates. The developer stated that the algorithms provide optimistic delivery times to encourage users to place orders.

These estimates are often shorter than realistic delivery times. As a result, customers frequently experience late deliveries, leading to frustration and complaints.

The internal systems prioritize speed to increase order volume. The developer noted that the algorithms do not account for real-world variables such as traffic or restaurant wait times effectively.

Driver Welfare vs. Corporate Metrics#

There is a reported disparity between the company's public statements on driver welfare and internal metrics. The developer revealed that driver compensation is often secondary to cost-cutting measures.

Internal metrics focus heavily on:

  • Order fulfillment speed
  • Reducing payout per delivery
  • Maximizing order volume

The developer claims that while the company publicly supports drivers, the internal algorithms are designed to minimize pay per trip. This creates a difficult environment for drivers trying to earn a sustainable income.

User Interface and Transparency Issues#

The developer described how the user interface is engineered to obscure the true cost of delivery. The app layout makes it difficult for users to see the breakdown of fees.

Transparency is limited regarding how much of the delivery fee goes to the driver versus the company. The developer stated that this design choice encourages users to complete purchases without analyzing the cost structure.

These interface decisions contribute to a lack of awareness among consumers about the economic realities of the delivery service. The developer's confession highlights a need for greater transparency in the application's design.

Continue scrolling for more

AI Transforms Mathematical Research and Proofs
Technology

AI Transforms Mathematical Research and Proofs

Artificial intelligence is shifting from a promise to a reality in mathematics. Machine learning models are now generating original theorems, forcing a reevaluation of research and teaching methods.

Just now
4 min
293
Read Article
UK Panel Flags AI Oversight Gaps in Finance
Politics

UK Panel Flags AI Oversight Gaps in Finance

A UK parliamentary committee has issued a stark warning: regulators are struggling to keep pace as artificial intelligence rapidly integrates into the nation's financial system, creating potential vulnerabilities.

1h
5 min
6
Read Article
Valentino Garavani, Legendary Italian Designer, Dies at 93
Lifestyle

Valentino Garavani, Legendary Italian Designer, Dies at 93

The Italian fashion icon, known for Valentino Red and dressing the world's most famous women, passed away at his home in Rome. Tributes pour in.

1h
5 min
6
Read Article
X Algorithm Open Sourced by xAI Organization
Technology

X Algorithm Open Sourced by xAI Organization

The X algorithm has been made publicly available through an open-source release, allowing developers and researchers worldwide to access and contribute to the codebase.

2h
7 min
0
Read Article
Technology

Chatbot Psychosis

Article URL: https://en.wikipedia.org/wiki/Chatbot_psychosis Comments URL: https://news.ycombinator.com/item?id=46688122 Points: 9 # Comments: 0

2h
3 min
0
Read Article
Pump.fun Tests Market-Driven Funding for Crypto Startups
Cryptocurrency

Pump.fun Tests Market-Driven Funding for Crypto Startups

A new funding model is emerging in the crypto space, replacing traditional venture capital selection with live token launches. Pump.fun is set to test this market-driven approach for early-stage projects.

2h
5 min
11
Read Article
Vinod Khosla is looking at this metric to gauge if we're in an AI bubble
Technology

Vinod Khosla is looking at this metric to gauge if we're in an AI bubble

Vinod Khosla says stock prices aren't the way to evaluate AI bubbles. Mert Alper Dervis/Anadolu via Getty Images Vinod Khosla said he measures AI industry health by API calls, not stock prices or Wall Street trends. Debate over an AI bubble grows as investment surges and leaders like Bill Gates and Michael Burry weigh in. Nvidia CEO Jensen Huang argues AI is driving a major shift in computing, not just market speculation. Vinod Khosla has his eye on one AI metric, and it's not stock prices. On an episode of OpenAI's podcast released on Monday, the famed venture capitalist shared how he's gauging whether we're in an AI bubble — or not. "People equate bubble to stock prices, which has nothing to do with anything other than fear and greed among investors," he said. "So I always look at, bubbles should be measured by the number of API calls." API, or Application Programming Interface calls, refer to the process in which one software application sends a message to another application to request data or to trigger an action. They are a common indicator of digital tools' use, especially with the rise of AI agents. High API calls can also be a mark of a poor or inefficient product. Khosla said the bubble shouldn't be called "by what happened to stock prices because somebody got overexcited or underexcited and in one day they can go from loving Nvidia to hating Nvidia because it's overvalued." The 70-year-old VC, whose notable investments include OpenAI, DoorDash, and Block, compared the AI bubble to the dot-com bubble. He said he looked out for internet traffic as a metric during the 1990s, and with AI bubble concerns, that benchmark is now API calls. "If that's your fundamental metric of what's the real use of your AI, usefulness of AI, demand for AI, you're not going to see a bubble in API calls," he said. "What Wall Street tends to do with it, I don't really care. I think it's mostly irrelevant." Concerns that the AI industry is overvalued because of massive investments became one of the buzziest themes in the second half of 2025. The phrase "AI bubble" appeared in 42 earnings calls and investor conference transcripts between October and December — a 740% increase from the previous quarter, according to an AlphaSense analysis. Top business leaders remain split about whether the bubble is about to burst. Microsoft cofounder Bill Gates said AI has extremely high value, but it's still in a bubble. "But you have a frenzy," Gates told CNBC in late October. "And some of these companies will be glad they spent all this money. Some of them, you know, they'll commit to data centers whose electricity is too expensive." Earlier this month, "Big Short" investor Michael Burry raised the alarm on an AI bubble in a Substack exchange. Burry wrote that companies, including Microsoft and Alphabet, are wasting trillions on microchips and data centers that will quickly become obsolete. He added that their spending has "no clear path to utilization by the real economy." Nvidia CEO Jensen Huang has dismissed concerns of a bubble. His company became the world's first $5 trillion market cap company in October on the back of the AI boom. In an October Bloomberg TV appearance, Huang said that instead of overspeculation, AI is part of a transition from an old way of computing. "We also know that AI has become good enough because of reasoning capability, and research capability, its ability to think — it's now generating tokens and intelligence that is worth paying for," Huang said. Read the original article on Business Insider

2h
3 min
0
Read Article
Alexis Ohanian Confirms He Doesn't Miss Reddit
Technology

Alexis Ohanian Confirms He Doesn't Miss Reddit

Reddit co-founder Alexis Ohanian gave a blunt three-word answer when asked about his former company during a recent AMA session. The entrepreneur is now focused on relaunching Reddit's old rival, Digg, with a new community-first approach.

2h
5 min
13
Read Article
Silicon Valley's Strategic Alignment with the Trump Administration
Politics

Silicon Valley's Strategic Alignment with the Trump Administration

A look at the relationship between technology leaders and the current US administration, examining the outcomes for those who aligned early with the president's return to office.

2h
5 min
9
Read Article
XJTLU: Academic Innovation for Future Entrepreneurs
Education

XJTLU: Academic Innovation for Future Entrepreneurs

As globalization and technology reshape our world, educational institutions must evolve. Xi'an Jiaotong-Liverpool University is leading this transformation through academic innovation.

2h
5 min
14
Read Article
🎉

You're all caught up!

Check back later for more stories

Back to Home