Are HomeAdvisor, Angi, DoorDash, and Uber Eats Hurting Small Businesses?

In today’s fast-paced digital economy, convenience reigns supreme. Platforms like HomeAdvisor, Angi, DoorDash, Uber Eats, and BetterHelp promise to deliver just that—convenience. They offer to connect service providers and small businesses with customers at the touch of a button. On the surface, it seems like a win-win, but if you look a little deeper, you'll find that these platforms are often hurting the very businesses they claim to help.

Here’s why.

1. They Strip Away Profit Margins

One of the most significant ways these platforms hurt small businesses is through exorbitant fees. Take DoorDash and Uber Eats, for example. Restaurants are charged commission fees that range from 15% to 30% per order. For a small restaurant with tight profit margins, that’s a significant cut. In fact, some restaurants have found that they’re making little to no profit when using these services. Recent data shows that profit margins in the restaurant industry can be as low as 3% to 5%. With commission fees eating into that, businesses are essentially working for these platforms rather than for themselves.

Similarly, HomeAdvisor and Angi charge contractors hefty fees to be listed, plus per-lead fees that can reach up to $60 per lead. Many small service providers report that they end up paying for leads that don’t convert, or worse, for customers who are just shopping around and never intend to hire anyone. The result? Small businesses are stuck in a cycle of paying more money to these platforms, all while watching their profits shrink.

2. They Own the Customer Relationship

When you rely on platforms like BetterHelp, HomeAdvisor, or Uber Eats, you are essentially renting customers from them. These platforms own the customer relationship, not you. Clients book through the app, receive updates from the app, and leave reviews on the app. Your business becomes just another name in the sea of providers listed on their platforms. Over time, your brand identity is diminished. Customers think of themselves as a “DoorDash user” or a “BetterHelp client,” not a loyal customer of your business.

This lack of direct relationship impacts long-term growth. When the platform decides to change their algorithm or raise their fees, you're left with no recourse because you don’t own the customer connection—you’re just renting space in someone else’s marketplace.

3. Predatory Marketing Tactics

Platforms like Angi (formerly Angie’s List) and HomeAdvisor have been accused of aggressive sales tactics that often mislead small businesses into thinking they'll get more leads or better exposure than they actually do. In 2018, HomeAdvisor faced a class-action lawsuit, where small businesses alleged they were promised "high-quality" leads but instead received overpriced, unqualified leads. In some cases, business owners were paying hundreds of dollars each month for very little return.

Similarly, Uber Eats and DoorDash have been criticized for listing restaurants on their platforms without the restaurants’ consent. This can cause major problems for small restaurants that suddenly find themselves overwhelmed with orders they didn't plan for, all while losing control over their own business operations.

4. They Create a Race to the Bottom

These platforms encourage a “race to the bottom” in terms of pricing. When customers are presented with multiple options in a single app, they often choose the cheapest service or product. This forces businesses to lower their prices just to stay competitive, even if it means taking a loss. In industries like home services or mental health counseling (as seen with BetterHelp), quality takes a backseat to price, which can be disastrous for small businesses that rely on their reputation for delivering superior service.

5. They Make Small Businesses Dependent

Perhaps the most insidious effect of these platforms is that they create dependency. Many small businesses feel that they can’t survive without being listed on these apps or platforms, especially since customers are now accustomed to the convenience they provide. In reality, this reliance is what weakens their independence. When DoorDash or Uber Eats controls your orders, HomeAdvisor controls your leads, or BetterHelp controls your client base, you're no longer in control of your business—you’re at the mercy of their fees, algorithms, and rules.

The Solution: Take Back Control with a Well-Built Website

Here’s the good news: You don’t have to rely on these platforms to survive. By building a strong, versatile website, you can take back control of your customer relationships, your brand, and—most importantly—your profits.

1. Direct Relationships: When customers book directly through your website, they’re engaging with your brand, not an intermediary. You have the opportunity to communicate directly with them, build loyalty, and create long-term relationships that drive repeat business.

2. No Commission Fees: A well-designed website with online booking and e-commerce capabilities allows you to process transactions without losing up to 30% of your revenue in fees. That’s money you can reinvest into your business instead of giving it to platforms like DoorDash or HomeAdvisor.

3. Full Control Over Your Business: With a custom website, you control how your services are marketed, how your brand is presented, and how your clients interact with your business. You’re not subject to the ever-changing algorithms or the whims of a third-party platform.

4. Build Your Own Traffic: With search engine optimization (SEO), you can attract clients directly to your website through organic search. A well-built, SEO-optimized website puts you in front of potential customers when they’re searching for services like yours—without paying per click or per lead. You control your traffic, your costs, and your customer base.

5. Long-Term Growth: Instead of competing in a race to the bottom, your website allows you to position your business as a high-quality provider that offers value beyond price. You can share customer testimonials, showcase your work, and tell your story in a way that resonates with your target audience.

Use These Platforms as Tools, Not Foundations

While platforms like DoorDash, Uber Eats, HomeAdvisor, and Angi can be useful tools for driving short-term traffic or filling in gaps, they should never be the foundation of your business. Relying on them as your primary source of customers puts your business at risk. Instead, use these platforms sparingly—as marketing tools, not the cornerstone of your strategy.

A well-designed, versatile website gives you the power to compete, grow, and succeed on your terms. It ensures that your small business thrives in a digital age where independence is your greatest asset. With CloverX Creatives, you can build a website that gives you everything you need to take back control, own your customer relationships, and secure your financial future—without sacrificing your profits to big platforms.

I'm not crazy when I say we want to keep the money we make, right? If you're down here. I think it's time to take the leap and reach out. We're ready if you are!

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