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Exactly. If I'm in California and I want to challenge the incumbents with my cool new idea about how to do delivery better, now I can't. There's no way to effec
by DGAP 6y ago
Exactly. If I'm in California and I want to challenge the incumbents with my cool new idea about how to do delivery better, now I can't. There's no way to effectively scale a sales team in the beginning to reach out to all these restaurants. And as you said, all the successful incumbent players already used this strategy to become big, now this won't materially affect them. They already have sales agreements in place with all the biggest sellers on their platforms.
- criddell 6y agoThe incumbents spent a lot of investor money to get where they are today. DoorDash, for example, started in San Francisco with something like 75 restaurants. That feels doable even with this bill. Today DoorDash is worth something like $15 billion. If you actually have a better idea and can execute, you will find investors.
- tzs 6y ago> There's no way to effectively scale a sales team in the beginning to reach out to all these restaurants. Sure their is. There's a whole system dedicated to it. You make a brochure describing the service you want to offer to the restaurants. There are then companies that will print as many copies of that brochure as you ask them to, put them in envelopes, and mail them to addresses on a list you provide. (There are companies that will make the list for you, too). Combine that with phone calls to the restaurants you think would be most beneficial to get on your service. Three salespeople using phones could contact 10% of the restaurants in Los Angeles in under a month, and all of them within a year. Restaurant delivery is local. You don't have to compete with the incumbents nationwide right from the start. You can do it one city at a time.