Well they didn’t ban the business model. They just ruled that a warehouse can’t be classed as a store. Which is atleast to me fair sounding. Since should customer not be able to walk into that establishment and buy stuff, it isn’t a store. It is delivery warehouse. Hence it shouldn’t be allowed on zonings and placings only meant for stores. You shouldn’t run commercial warehouse out of retail zoning. Since commercial warehousing is not a retail business. Retail implies customers are directly retail consumers, not other business partners.
Normal store could still partner with a delivery company. Issue is the delivery companies don’t want to partner with normal stores, since then the store wants their cut. They want to directly rent a space and turn it into warehouse. Since that costs less per item, than paying to partner with a store. You could still operate the store as supply point. Just can’t be just a delivery point.
It was companies own decision “we don’t think this makes sense, if we can’t pinch the last penny by running our own dark store. instead of say partnering with local retail chain”.