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I am very curious why food-related startups are mostly about delivery like deliveroo and uberEats. Is it because of the advertising efforts put in, or my lack o
by a_c 8y ago
I am very curious why food-related startups are mostly about delivery like deliveroo and uberEats. Is it because of the advertising efforts put in, or my lack of attention.
Would love to learn from someone who can shed some light on your set of question!
- petra 8y agoVC based companies want to control the app(controlling user demand) and control the delivery network. Why ? Roughly speaking, high demand means you can deliver cheaper than others(assuming you have the delivery network) - because if you deliver all the meals in my building, it's very efficient. Once you have those, you tend to win the market, make tons of money, and it's very hard for someone else to build that and challenge you. A very good business.
- mcintyre1994 8y ago> I am very curious why food-related startups are mostly about delivery like deliveroo and uberEats. I assume because it's much cheaper to hire contractors than employees, and it's much easier to make delivery drivers contractors (you can deliver for lots of companies in one night) than chefs (you're not going to cook each different meal for a different restaurant in one night). So if you only provide the delivery you only need contractors for the actual service you provide.