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Top comment on that post is great, I'll just quote it in its entirety: Collin May 19, 2020 Liked by Can Duruk I was the former Head of Innovation at Grubhub
by afterburner 4y ago
Top comment on that post is great, I'll just quote it in its entirety:
Collin
May 19, 2020
Liked by Can Duruk
I was the former Head of Innovation at Grubhub, so I have seen the truth behind many of these claims first hand. Sadly, I invented a lot of the food delivery technologies that are now being used for evil. There were so many great points made here, and I’m glad people are finally paying attention to this. I will try to only add to a few.
COVID-19 is exposing the fact that delivery platforms are not actually in the business of delivery. They are in the business of finance. In many ways, they are like payday lenders for restaurants and drivers. They give you the sensation of cash-flow, but at the expense of your long term future and financial stability. Once you “take out this loan” you will never pay it back and it will ultimately kill your business.
In the case of restaurants, these platforms slowly siphon off your customers and then charge you to have access to them. They are simultaneously selling these same customers to your competitor across the street, but, don’t worry, they are also selling their customers to you.
For drivers, they are banking on a workforce that is willing to mortgage their assets, like cars and time, well below market value, in exchange for money now. They know that most delivery drivers are simply not doing the math on the actual cost of providing delivery (time, gas, car maintenance, payroll taxes...etc). If they did, drivers would realize that they are actually the ones subsidizing the cost of delivery.
Delivery platforms are “hyper-growth” businesses that are trying to grow into a no-growth industry. Food consumption really only grows at the rate of population growth, so if you want to grow faster than that, you have to take market share from someone else. Ideally, you take it from someone weaker, who has less information. In this industry, the delivery platforms have found unsuspecting victims in restaurants and drivers.
The competition for customers has not gone away. It has simply moved online. Many restaurants have been too slow, or unwilling to adapt. Delivery platforms and other restaurants are taking advantage of this to gobble up market share. Restaurants need to realize that they are now running e-commerce businesses and they need to act accordingly. Being proficient on Google, Yelp, Facebook and the dozens of other platforms is no longer optional, it is essential.
My team is trying to do everything we can to help restaurants transition, but restaurants have to be willing to change. You can learn more about what we are doing to fight back at zero.eatgeek.com. Stay hungry.
- civilized 4y agoI call the local pizza place a couple times a month. I place the exact same order I always do. They ask for my name and phone number each time, but the whole call still only takes about a minute. Who needs an app.
- ParetoOptimal 4y agoPeople who don't want to talk on the phone.
- prawn 4y agoPeople who want to check for special deals, or who don't know the menu, or who don't want to tie up phone staff on a busy night, or who will take 20 minutes with a group of people trying to decide what to order, etc.
- beambot 4y agoThe holy grail of food delivery: decent food, delivered reasonably quickly, for the same (or lower) net price as in-person at a sit-down restaurant, without predatory gig economies. There seem to be one or two key inflections that make this feasible. Examples: (a) autonomous vehicles nuking delivery costs; and/or (b) ghost kitchens to eliminate restaurant overhead. In light of that... these companies are really just predicting where the ball will be when (a) and/or (b) are commoditized: Capturing market share & distribution now with marginal economics while waiting for one or two key inflections.