Food delivery companies should be a lifestyle business, not a megacorp. There's definitely room for a dozen companies of a few dozen people working on delivery

Food delivery companies should be a lifestyle business, not a megacorp. There's definitely room for a dozen companies of a few dozen people working on delivery apps, and for a few thousand integrators across the country helping businesses install - And that's it. The amount of margin you can squeeze out of these companies, sustainably, is 5-10%. 5-10% of gross restaurant profits is still a very big market. But it's not a winner-take-all Look to Dominos as a model - I've been following their reinvention as a "tech company". Dominos corporate doesn't own many stores. Local affiliates do that. What Dominos corporate does is half logistics (Getting shipments of pizza products to stores, negotiating bulk rates) and half tech (Running the ordering systems, website, and marketing apparatus). In some ways, they've long dealt with the "uber" model problems of employee/contractor divide. Stores are mostly owned not by corporate but by small local companies. Those small companies do actually employ their workers, but don't have the same problems that giant business do, because they are "small businesses". In return they are a lot more autonomous than Uber city-managers, and the "corporate" entity takes a smaller cut of the profits than Uber does.