In one option, there’s high turnover (bad for customers, employees, and restaurants) leading to restaurants not signing up with future food delivery companies due to being burned in the past. In the other option, there’s a heathy competition leading to customers paying realistic prices (an undistorted market) and giving delivery workers and restaurants more stability.
- if a market player wants to sell goods or services at a loss, let them do it and it benefits the consumer
- if the competition goes out of business and the prices are raised, somebody else will see the opportunity to enter the market at a lower cost.
Rinse and repeat. The consumers benefit from it either way.