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I am not really sure why people think the model is economic. The fixed costs are huge, it is either difficult or impossible to actually offset a living wage to
by hogFeast 6y ago
I am not really sure why people think the model is economic. The fixed costs are huge, it is either difficult or impossible to actually offset a living wage to the delivery person if they are only fulfilling one order at a time. The only way this model works now is by hosing down restaurants (in many places right now, there is literally no choice for restaurants but to make delivery apps money). It is true, lots of these restaurants got themselves into this mess by not realising how valuable deliveries were...but...I don't understand how this is long-term viable. Paying someone EUR10 to deliver EUR20 of food makes no sense for most customers.
- user-the-name 6y agoCouriers definitely are not only fulfilling one order at a time. As you correctly surmise, that would not be possible to do economically. Orders are routed so that couriers pick up multiple orders, and pickups and dropoffs can be interleaved to keep multiple orders live at all times.