14 ms·
He never says how the business responded to this. I.e. why didn't it shift to Oakland, San Jose, or even another metro area. Unless the business model only work
by muzz 6y ago
He never says how the business responded to this. I.e. why didn't it shift to Oakland, San Jose, or even another metro area. Unless the business model only worked in San Francisco.
- ssivark 6y agoPopulation density (of target audience) is one of the most crucial things for a service like 15 minute food delivery, so if restricted to the Bay Area, few places can compete with SF. Further, cost of living in SF is significantly higher, which allows you to charge more... but your costs also increase, unfortunately. So you might be motivated to have a second “back office” in a cheaper neighborhood doing as much of the processing as possible, and then doing the final assembly in the “front office”... but food can lose freshness very quickly; so the game goes. I guess the point is that they “learned” that there doesn’t exist a sustainable market for food delivery in the given situation.