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That's a different argument that what most people in the thread are making and in my opinion, a reasonable one.
by malisper 6y ago
That's a different argument that what most people in the thread are making and in my opinion, a reasonable one.
- arcticbull 6y agoI suspect that the massively negative first year margins due to, what I assume is CAC, creates a moat. Very few companies are as "backed by Masayoshi Son," i.e. willing to set fire to the huge quantities of money necessary to establish a foothold. This is a network effect business in a lot of ways, and metros tend to be dominated by a particular food delivery provider.
- gumby 6y agoThe problem with CAC in this market is that I doubt enough people say, "I'm hungry, I'll open door dash". Instead I want to eat from a local restaurant whom I call for delivery and then door dash pays someone to bring my food. In that case DD hasn't "acquired" me as a customer.
- arcticbull 6y agoI'm definitely in the former camp so I'm curious what the breakdown is.
- icedchai 6y agoYep... I use whatever one offers me the best deal. These days, I rather order it from the restaurant directly if they have curb side pick up. It's better for them and me. Delivery drivers often get lost or are incredibly late.