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> Food delivery is very low margin and companies have realised there is pretty much no money to be made here as an expensive middle man Somebody should probabl
by cactus2093 5y ago
> Food delivery is very low margin and companies have realised there is pretty much no money to be made here as an expensive middle man
Somebody should probably tell that to the millions of public market investors who have bought into these public companies worth tens of billions of dollars.
https://www.google.com/search?q=doordash+stock&oq=doordash+stock https://www.google.com/search?q=doordash+stock&oq=doordash+s...
https://www.google.com/search?q=uber+stock https://www.google.com/search?q=uber+stock
https://www.google.com/search?q=grub+stock&oq=grub+stock https://www.google.com/search?q=grub+stock&oq=grub+stock
In fact if you're sure there's no money to be made, you could short them all and make a killing. Have you done that?
- altacc 5y agoThat's a whole other discussion. Having a good stock price does not equate to profitability. Vast amounts of money are pumped into loss making companies in the hope of future returns, either when other people pump money in to raise the price, or a profit is eventually returned. Uber has yet to post a profitable quarter, let alone year. Doordash has had one quarter in the black. This is during a pandemic, when use of these services has skyrocketed. By some analysis, food delivery companies have a potential margin of about 2% from delivery alone. Which is why these companies are trying to find other ways to take in more per order and hopefully one day make a profit.