4 ms·
Menu markups, discounts based on volume, sponsored listings, 1099s for drivers, delivery fees upwards of $10. The business model isn't as bad as you'd think.
by joshmn 11y ago
Menu markups, discounts based on volume, sponsored listings, 1099s for drivers, delivery fees upwards of $10.
The business model isn't as bad as you'd think. For newcomers in this space, the major issue (that could very well thwart any innovation) is fraudulent orders.
- danieltillett 11y agoAll of these (other than 1099) require you can establish a monopoly in a delivery area. Given the low barriers to entry and the extreme locality of such a service it is very hard to establish and defend a monopoly in this niche.
- joshmn 11y agoYou're not wrong. I'm wondering if certain providers ever try to push an exclusivity agreement. Seems dumb to do from a restaurant's prospective, as I'm sure they see all these products as "the delivery app". But they're different to me: I won't order from DoorDash because I can't be confident my food will be hot — they do multiple deliveries per run, as opposed to an exclusive run.
- danieltillett 11y agoPutting a third party between you and your customers when you are selling a highly perishable product in a highly competitive market is crazy risky. One area I have thought might work is if these food delivery services act as the seller and take responsibility for quality. You could have a DoorDash sell the food and outsource the production to the restaurants. The customer would not know where the meal came from and any quality issues would be on the DoorDash services plate (sorry for the pun).