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If you let that play out DoorDash goes out because in reality it isn't feasible to sustainably deliver to your doorstep in minutes. UPS does it in a 1 day time

by gempir 7y ago

If you let that play out DoorDash goes out because in reality it isn't feasible to sustainably deliver to your doorstep in minutes. UPS does it in a 1 day timeframe and not with food which could get cold or something and they deliver to a lot more houses at once. While DoorDash targets 1 customers house and lets 1 biker drive there. If you want to pay for him to have a fair wage then you probably wouldn't order from DoorDash anymore because it's too expensive

mytailorisrich 7y ago
That would exactly be letting the market play out. At the moment tips are a hidden cost that customers don't see or think about when they order. It effectively allows Doordash (and others) to present their service as being cheaper than it really is. If presenting the full cost upfront means people stop using the service then it simply means that there is actually no viable market.
- ukoki 7y ago
  > If presenting the full cost upfront means people stop using the service then it simply means that there is actually no viable market. There are plenty of food delivery companies (eg Deliveroo, Wolt, FoodPanda) in countries without a tipping culture. Go to any European capital and chances are you'll see loads of brightly-coloured cube-shaped backpacks cycling around — so the companies seem to be doing OK.
  - mytailorisrich 7y ago
    I am in Europe and use Deliveroo from time to time. There are several of these companies here, indeed. This does not mean that any of any of them are doing OK in terms of bottom line. According to figures from end of last year Deliveroo lost £185m while making £277m in sale... Any 'normal' business would have collapsed even before getting there. These companies are like Uber and Lyft: The business case is very shaky and they are facing employment law pressures at the same time. So we'll see...
sigwinch28 7y ago
You say this as if it's a bad thing, as if DoorDash has a right to exist but the workers shouldn't get a living wage to facilitate it.

by gempir 7y ago

mytailorisrich 7y ago

That would exactly be letting the market play out. At the moment tips are a hidden cost that customers don't see or think about when they order. It effectively allows Doordash (and others) to present their service as being cheaper than it really is. If presenting the full cost upfront means people stop using the service then it simply means that there is actually no viable market.

ukoki 7y ago
> If presenting the full cost upfront means people stop using the service then it simply means that there is actually no viable market. There are plenty of food delivery companies (eg Deliveroo, Wolt, FoodPanda) in countries without a tipping culture. Go to any European capital and chances are you'll see loads of brightly-coloured cube-shaped backpacks cycling around — so the companies seem to be doing OK.
- mytailorisrich 7y ago
  I am in Europe and use Deliveroo from time to time. There are several of these companies here, indeed. This does not mean that any of any of them are doing OK in terms of bottom line. According to figures from end of last year Deliveroo lost £185m while making £277m in sale... Any 'normal' business would have collapsed even before getting there. These companies are like Uber and Lyft: The business case is very shaky and they are facing employment law pressures at the same time. So we'll see...

sigwinch28 7y ago

You say this as if it's a bad thing, as if DoorDash has a right to exist but the workers shouldn't get a living wage to facilitate it.