I’m no fan of AI, but this doesn’t sound like an AI problem. They switched to using delivery contractors instead of employees to put more of the risk and cost on the delivery drivers. The payment structure to those delivery drivers is not really affected by Pizza Hut’s customer satisfaction, just the number of deliveries they make and tip amount on those deliveries. So the drivers bundle orders and ignore low tip orders.
Pizza Hut can have the lower costs of contractors or the increased quality control of employees and they chose the lower costs.
You misunderstand. The badness was not caused by switching to DoorDash. That happened and was smooth. The badness was caused when Pizza Hut started giving DoorDash drivers tons of extra information about other upcoming orders. The extra information allowed drivers to optimize their deliveries.
This was part of what Pizza Hut described as an AI expansion. Obviously there’s nothing magical happening here, simply more information sharing leading to negative consequences for customers and thus reduced business. But it was marketed under the “AI” umbrella.
I’m no fan of AI, but this doesn’t sound like an AI problem. They switched to using delivery contractors instead of employees to put more of the risk and cost on the delivery drivers. The payment structure to those delivery drivers is not really affected by Pizza Hut’s customer satisfaction, just the number of deliveries they make and tip amount on those deliveries. So the drivers bundle orders and ignore low tip orders.
Pizza Hut can have the lower costs of contractors or the increased quality control of employees and they chose the lower costs.
You misunderstand. The badness was not caused by switching to DoorDash. That happened and was smooth. The badness was caused when Pizza Hut started giving DoorDash drivers tons of extra information about other upcoming orders. The extra information allowed drivers to optimize their deliveries.
This was part of what Pizza Hut described as an AI expansion. Obviously there’s nothing magical happening here, simply more information sharing leading to negative consequences for customers and thus reduced business. But it was marketed under the “AI” umbrella.