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Profitable unit economics are an essential ingredient of pretty much every successful business, and the inability to make the unit economics work the reason for
by seanhunter 9y ago
Profitable unit economics are an essential ingredient of pretty much every successful business, and the inability to make the unit economics work the reason for a huge numbers of failures.
I don't know the LA market if you take New York, there is already an extremely efficient low-cost food delivery market where the vast majority of restaurants do take-out and various ordering services (seamless etc) are available and very frequently used. It's going to be extremely difficult to get good market penetration with unit economics that allow for a profitable business in the long term.
A lot of people focus purely on an improved user experience (eg the magic of uber where you click and a car comes, and you just get out without paying at the end) but "disruption" of the established UX isn't enough - you need to provide goods and services at a price point where there is demand and yet somehow you still make enough to stay in business.