4 ms·
You're right that they're sort of structurally forced into using these, so it seems a bit weird to say they're adding value. But maybe these delivery services
by ericd 6y ago
You're right that they're sort of structurally forced into using these, so it seems a bit weird to say they're adding value.
But maybe these delivery services have grown aggregate demand for restaurant food by making it more convenient for customers? Anecdotal, but I used Uber/Lyft probably >50x more than I ever used taxis outside of NYC, and I've gotten a lot more takeout than I used to since these delivery apps became available.
If I still lived in NYC, the differential would've been much smaller, but most of the country is waaaay behind NYC in taxi/delivery usage per capita, many people are coming from near 0 in those categories.
- ryanwaggoner 6y agoI do think they’re growing the overall pie by increasing total takeout and delivery spend, but restaurant margins were always razor thin, so losing 30% off the top will just drive many restaurants out of business. I think the long-term here is probably just different, not worse. Many restaurants will go under, but new ones will arise that optimize for this. See the ghost kitchen phenomenon. And hopefully a combination of restaurant and user revolt, the threat of regulation, and competitive pressure from other delivery services will drive fees down to something more reasonable like 10-15%.