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Economies of scale might give the market owner such a huge advantage in food delivery logistics (coupled with ride logistics etc), that it’s worth losing a lot
by slewis 7y ago
Economies of scale might give the market owner such a huge advantage in food delivery logistics (coupled with ride logistics etc), that it’s worth losing a lot until inflection. The winner forces everyone out, and gets there by spending more up front.
- enlyth 7y agoYes, if this happens, this is good, from a monetary point of view. If the end goal is that the multi-billion dollar corporation who forces everyone out from the market makes as much money as possible, then this is great, for them at least. I guess there's some praise to be given out because everyone wants to be like that, and wishes they were smart enough to be the first to dive into this burning pile of VC money. But what if the goal is something else like creating a profitable, sustainable and efficient service that benefits both consumers and producers? Too boring for shareholders I guess.
- GVIrish 7y agoWhat food delivery logistics? Ubereats is not tackling any part of the food preparation, food supply chain, or even the problem of keeping food hot. All they're doing is pick up and delivery. There's no moat there and there's not a lot of untapped profit margin there. Ubereats could win in this market tomorrow and it still wouldn't be worth billions.