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From 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 h
by tracer4201 6y ago
From 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.