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Did DoorDash end up figuring out how to pay their drivers a normal wage without confiscating their tips? If so, how? Seems like it would have tremendous downwar
by triangleman 6y ago
Did DoorDash end up figuring out how to pay their drivers a normal wage without confiscating their tips? If so, how? Seems like it would have tremendous downward pressure on their profitability.
- jonsno56 6y agoThey figured out how to pass Prop 22!
- Spivak 6y agoYeah, DD and others figured out that customer acquisition is where the value-add is for restaurants so they take ~30% gross from each order as commission . Being the "first place" people look when they're hungry gives them pretty okay leverage. In non-pandemic times this is actually a sweet deal for restaurants that don't want to do their own delivery because food and the marginal cost of labor is cheap and your goal is to reduce kitchen idle time as much as humanly possible and another source of orders is a positive. It cannibalizes take-out orders a little but opens up people who would do delivery but not take-out.
- sjg007 6y agoWell the future is all take out. The play here is cloud kitchens which is sort of door dash/uber eats 2.0.
- sitkack 6y agoAnd CK will deliver themselves as leverage to entice a sweet deal from Lyft or Uber. They will edge out DD. To the point where pre-made items will be sitting in warmers at strategic locations (ML) or delivered on a recurring basis in bulk (like a newspapers or milk).