4 ms·
They aren't making a profit because they're spending more than they're making. They make enough to pay the driver, the operations around that, and the tech runn
by cordite 6y ago
They aren't making a profit because they're spending more than they're making. They make enough to pay the driver, the operations around that, and the tech running the site.
But their shareholders see this as an opportunity to expand the markets. They aren't taking this for granted, they're aggressively spending on marketing, on signing up restaurants for their platform (except DoorDash, they list most restaurants without partnership), on ads for Google, Facebook, and other major platforms. This is why they aren't making a profit.
But it's eating so much into their costs that they're doing some sneaky practices: they're doing the same that Etsy does, taking more out of the net sales on advertising that the restaurant did not consent to knowing they will be charged for it as much as they were.