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do we have any data showing that local deliveries handled by mom and pop restaurants were profitable in the first place? We surely have a lot of data at scale
by jypepin 6y ago
do we have any data showing that local deliveries handled by mom and pop restaurants were profitable in the first place?
We surely have a lot of data at scale now to show uber eats and co loose a ton of money, but I'm not conviced the local restaurant paying a salary to a driver etc were many a lot of money either? I really dont know
- hogFeast 6y agoYes. How do you think food got delivered before GrubHub? And yes, they were making money doing it. If they weren't, they would just stop doing it. These sales were also far more profitable than UberEats or whatever...which is kind of obvious given that they weren't paying their drivers a 30% cut. The real value of these companies is the marketing (which is why the companies that have been doing this for years, like Just Eat, didn't provide delivery at all until recently). ...but yeah, people really underestimate how bad a deal some of these places are for small businesses. Most large restaurants (i.e. McDonalds on UberEats) are actually paid to be on the service. The small businesses get reamed (Just Eat is opening dark kitchens, whenever they see someone making money...they move in and kill the business).