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Mathematical analysis of the problem leads to the same conclusion as I would have told if someone asked me about the food delivery business model in India. The
by surds 10y ago
Mathematical analysis of the problem leads to the same conclusion as I would have told if someone asked me about the food delivery business model in India.
The economic reason for possible failure can be stated in just a couple of sentences - Labour is cheap in India, so most restaurants keep on-staff delivery personnel. This makes it easy for them to ramp-up if needed and often they have no need to contract with a third-party, food delivery service.
I see this model as a possibility here in the US, where labour is not cheap, and not all restaurants deliver food themselves. And yes, I believe they can work well. I used DoorDash several times when I resided in an area they serviced. Whether these businesses flourish or not is an entirely different matter, and growing competition in the field is definitely not making it easy.
- mnkmnk 10y agoThat is definitely not a good reason. Food delivery startups don't just deliver food, they make it easy to order food. They have their own app, you can pay through credit cards and mostly it just provides a better experience ordering food. Even if restaurants hire their in house delivery team, they will still need to get orders from somewhere. I have been ordering from restaurants directly, and it is just not fun giving orders on a call to the restaurant with your friends shouting what they want to order.