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The problem is that delivery is a commodity business; there's not much of a moat keeping a DoorDash customer from going somewhere else. The customer is pretty l
by prewett 6y ago
The problem is that delivery is a commodity business; there's not much of a moat keeping a DoorDash customer from going somewhere else. The customer is pretty likely to churn if a cheaper alternative shows up, they get cold food, whatever, in which case DoorDash isn't going to record their theoretical future profits.
- petra 6y agoRestaurant Food is not exactly a commodity. It's more a habit, and around 70% of people are loyal customers of some restaurants. And UberEats, for example, currently has helped to create 4000 virtual restaurant brands. As for cost, at the scale UberEats, DoorDash, etc operate, there's no reason they wouldn't have access to the lowest cost providers.