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Man makes money buying his own pizza on DoorDash app
- tracer4201 6y agoFrom reading the blog post linked from the article, DoorDash doesn’t actually make money. Someone who understands finance better, what is the longer term play here? Is it to optimize to grow and then raise prices in the future?
- lm28469 6y agoSame as Uber &co. Kill competitors by selling at loss and achieve monopoly. Which will never work because there is almost no barrier to entry in these businesses.
- mewpmewp2 6y agoHow is there no barrier of entry? Very high marketing, legal, etc costs and highly optimized/intelligent routing, scheduling system within an app.
- boublepop 6y agoThey may lose money on every order, but they’ll make up for it by volume.
- fakedang 6y agoWhen you lose money on a per unit basis, and add SG&A on top of that, you don't really make any money even through volume.
- softbankhater 6y agoSoftbank is a money-wasting machine. I will never give them even a penny. They are the worst investors on the entire planet.
- noad 6y agoI am not sure if they are the "worst investors" or just "the ones left holding the bag at the end". Lots of super smart VC people in the valley just exited a little bit sooner. That's quite literally the only difference. This whole investment ecosystem was built around this, gotta exit ASAP
- swivelmaster 6y agoThe difference is that VCs exited when they realized that the business model was probably never going to work, while Softbank happily took their place despite likely knowing that the other investors were getting out. It's like walking into a house party while everyone is running out the back yelling "cops are coming!" and thinking, "this is gonna be a great party once all these screaming people leave!"
- noad 6y agoNo, the VCs exit when their mountains of data say to exit. It has nothing to do with the business, just valuations. If you get in at or before Series A you are going to make money nearly every time. If you get in after that you are going to lose money nearly every time. This has nothing to do with the industry or the business model or smart people making savvy choices.
- danielscrubs 6y agoI'd argue that from a humanistic standpoint, spreading money around is at least better than sitting on money. But yeah, I'll not invest in SoftBank nor any of the latest Silicon Valley fads. My current and only investment strategy, that has worked out way beyond expectations is investing in near monopolies. I call it: the rich get richer strategy. Got it from reading Warren Buffett books. Out of curiosity, how did you end up with that username?
- fakedang 6y agoPlot twist, he's Nikesh Arora
- ken 6y agoBBC summary of Monday's https://news.ycombinator.com/item?id=23216852 https://news.ycombinator.com/item?id=23216852