4 ms·

I still haven't figured out how an app would get a monopoly? Each city is pretty independent so there's not much incumbent advantage. Seems like a reasonable

I still haven't figured out how an app would get a monopoly? Each city is pretty independent so there's not much incumbent advantage. Seems like a reasonable discount would get someone to try a new app. Drivers aren't loyal. If a restaurant uses any app they probably don't care where the order comes from. Taco bell and other chains might be hard to get but is the market for taco bell or mcdonalds that big for delivery? and seems like it clutters the app anyway. DashPass what does it get you? lower fees they should be charging anyway? Am I missing something?

echelon 4y ago
The exclusivity agreements are between the restaurant and the courier. DoorDash has a massive sales team to negotiate contracts. The theory is that restaurants may not be fungible to all diners and that by contracting with as many restaurants as possible, the competition becomes less attractive.
- sharemywin 4y ago
  I don't know of any exclusivity clauses in contracts. Most restaurants are on GrubHub and Doordash and UberEats.
chrisseaton 4y ago
> I still haven't figured out how an app would get a monopoly? They don’t have a monopoly, that’s why.
- sharemywin 4y ago
  But that's the premise why they've got such a huge multiple.
zem 4y ago
mostly they have solved the problem of "i've heard of this service and i will go to their homepage to search for restaurants when i want to order delivery"
- sharemywin 4y ago
  still think the market could be segmented to remove the clutter(aka taco bell). And an incentive like $15 off your first order etc Kind of like Etsy and Ebay.
TheAceOfHearts 4y ago
If you already have the app you usually start by checking what options are available there. As a user, I don't want to install another app, create an account, fill out my address and delivery details, and put in my billing information. Some restaurants have their own online ordering system which lets you automatically fill everything out with PayPal and such. Besides, what is there to compete on?
- sharemywin 4y ago
  Price. Some kind of discount on the first order. Anti corporate Local only option. In app clutter. Walgreens coming up when you search for desserts.
duxup 4y ago
I assume most of these situations are (if they actually thought this through that far) is achieve enough coverage and then institute some sort of predatory type deal with the local stores that locks them into their service / gives them deals on pricing and etc. None of these seem to make sense in a dynamic free market with healthy competition.
- sharemywin 4y ago
  The thing that's worked in the past for companies is free digital options where your marginal distribution costs are 0. But drivers that's not the case. Could driverless tech work maybe. but would commercial driverless cars have apis?
Turing_Machine 4y ago
> Drivers aren't loyal. If a restaurant uses any app they probably don't care where the order comes from. Some drivers probably drive for multiple companies, and cherry-pick the best order that comes up. I know I've seen drivers who drove for Uber and Lyft at the same time. Seems like the same is likely true for the food services.
- sharemywin 4y ago
  youtube's full of drivers talking about using multiple apps.
gigaflop 4y ago
My credit card has an annual fee, but includes DashPass for free when I use it. So, if I order twice a month, I'm even-ish on costs versus the discounts. If there aren't any coupons available to me, then I sometimes try to optimize an order around a delivery minimum. Typical fast food restaurants are surprisingly good targets for this. I think of the delivery fees + tips I pay as the cost of convenience. They mean I can sit around in my pajamas, playing a game or watching a movie, while slightly intoxicated. Or, I can read a book outside while I wait, if it's nice out.
- lock-the-spock 4y ago
  > My credit card has an annual fee, but includes DashPass for free when I use it. So, if I order twice a month, I'm even-ish on costs versus the discounts. Technically you are not even-ish, you just spend more money. It's like buying a piece of clothing that's on sale - you don't save money unless you intended to purchase that exact (or an equivalent) item anyway. So unless you were anyway going to buy that specific food (rather than e.g. cook your own food, make a sandwich, or bake a frozen pizza) you are not at all profiting.
  - gigaflop 4y ago
    Oh no, I don't profit at all. More like, I know I'm going to be spending here, so I'm going to grab some perks where I can. * Annual card fee is cheaper than DashPass * Decent points rewards from the card itself * DashPass significantly reduces fees * I use promotional discounts when I can I expect to order food for delivery at least twice per month anyways, and the savings I get from this scheme offset the annual fee on the card. Plus, I keep some other delivery apps on my phone in case they send me desperation coupons. I do also keep some frozen goodies, but I consider ordering out to be a treat. I just like to eat, and sometimes, KFC is what's gonna hit me right. Other times, a frozen pizza, which I greatly prefer to cheap chain-store pizza.
    - kaibee 4y ago
      This is a ludicrous system. Imagine trying to explain this to someone from 1970.
IdiocyInAction 4y ago
I trust the app to be a more reliable intermediary between me and the restaurant rather than ordering directly. I trust that the app is more technically sound (I've had problems ordering from 'bespoke' apps and websites) and won't forget my order or route it to different city/country or something (things that have happened). Some apps offer tracking of the courier (can be nice to have) and give features that 'bespoke' options don't have. Also, you get reviews and discoverability of options. I can go to a different city and see all the delivery options immediately. Unlike a lot of people here, I've had great experiences with food delivery apps. Not doordash (not a thing where I live), but others. I knew people working as delivery bikers and they said it can be a decent way to earn a living while you're studying. The flexible nature of the work lends itself well to that.
- smm11 4y ago
  'Bespoke' used to mean something else. From now on, "duck" means my toaster blew a fuse again.
  - jachee 4y ago
    I’ll bite. What do you believe is the meaning of ‘bespoke’ as used here?
    - smm11 4y ago
      It's used here in the most current meaning. Not "to speak for," or "nice stuff," but for "limited, hurry and get it." Two and three are melding a bit, but the word has been twisted and abused, and for some reason liked enough by influencers now that it's come around again. Sort of like Toto's Africa.
- sharemywin 4y ago
  if your a traveler then yes. it absolutely makes sense. Totally would use big app to check out the restaurants reviews although google does reviews too.
amelius 4y ago
A brand is basically a monopoly on a part of your brain. There are only so many brands that fit inside a person's brain, so for every category there's usually only one brand in memory.

echelon 4y ago

The exclusivity agreements are between the restaurant and the courier. DoorDash has a massive sales team to negotiate contracts. The theory is that restaurants may not be fungible to all diners and that by contracting with as many restaurants as possible, the competition becomes less attractive.

sharemywin 4y ago
I don't know of any exclusivity clauses in contracts. Most restaurants are on GrubHub and Doordash and UberEats.

chrisseaton 4y ago

> I still haven't figured out how an app would get a monopoly? They don’t have a monopoly, that’s why.

sharemywin 4y ago
But that's the premise why they've got such a huge multiple.

zem 4y ago

mostly they have solved the problem of "i've heard of this service and i will go to their homepage to search for restaurants when i want to order delivery"

sharemywin 4y ago
still think the market could be segmented to remove the clutter(aka taco bell). And an incentive like $15 off your first order etc Kind of like Etsy and Ebay.

TheAceOfHearts 4y ago

If you already have the app you usually start by checking what options are available there. As a user, I don't want to install another app, create an account, fill out my address and delivery details, and put in my billing information. Some restaurants have their own online ordering system which lets you automatically fill everything out with PayPal and such. Besides, what is there to compete on?

sharemywin 4y ago
Price. Some kind of discount on the first order. Anti corporate Local only option. In app clutter. Walgreens coming up when you search for desserts.

duxup 4y ago

I assume most of these situations are (if they actually thought this through that far) is achieve enough coverage and then institute some sort of predatory type deal with the local stores that locks them into their service / gives them deals on pricing and etc. None of these seem to make sense in a dynamic free market with healthy competition.

sharemywin 4y ago
The thing that's worked in the past for companies is free digital options where your marginal distribution costs are 0. But drivers that's not the case. Could driverless tech work maybe. but would commercial driverless cars have apis?

Turing_Machine 4y ago

> Drivers aren't loyal. If a restaurant uses any app they probably don't care where the order comes from. Some drivers probably drive for multiple companies, and cherry-pick the best order that comes up. I know I've seen drivers who drove for Uber and Lyft at the same time. Seems like the same is likely true for the food services.

sharemywin 4y ago
youtube's full of drivers talking about using multiple apps.

gigaflop 4y ago

My credit card has an annual fee, but includes DashPass for free when I use it. So, if I order twice a month, I'm even-ish on costs versus the discounts. If there aren't any coupons available to me, then I sometimes try to optimize an order around a delivery minimum. Typical fast food restaurants are surprisingly good targets for this. I think of the delivery fees + tips I pay as the cost of convenience. They mean I can sit around in my pajamas, playing a game or watching a movie, while slightly intoxicated. Or, I can read a book outside while I wait, if it's nice out.

lock-the-spock 4y ago
> My credit card has an annual fee, but includes DashPass for free when I use it. So, if I order twice a month, I'm even-ish on costs versus the discounts. Technically you are not even-ish, you just spend more money. It's like buying a piece of clothing that's on sale - you don't save money unless you intended to purchase that exact (or an equivalent) item anyway. So unless you were anyway going to buy that specific food (rather than e.g. cook your own food, make a sandwich, or bake a frozen pizza) you are not at all profiting.
- gigaflop 4y ago
  Oh no, I don't profit at all. More like, I know I'm going to be spending here, so I'm going to grab some perks where I can. * Annual card fee is cheaper than DashPass * Decent points rewards from the card itself * DashPass significantly reduces fees * I use promotional discounts when I can I expect to order food for delivery at least twice per month anyways, and the savings I get from this scheme offset the annual fee on the card. Plus, I keep some other delivery apps on my phone in case they send me desperation coupons. I do also keep some frozen goodies, but I consider ordering out to be a treat. I just like to eat, and sometimes, KFC is what's gonna hit me right. Other times, a frozen pizza, which I greatly prefer to cheap chain-store pizza.
  - kaibee 4y ago
    This is a ludicrous system. Imagine trying to explain this to someone from 1970.

IdiocyInAction 4y ago

I trust the app to be a more reliable intermediary between me and the restaurant rather than ordering directly. I trust that the app is more technically sound (I've had problems ordering from 'bespoke' apps and websites) and won't forget my order or route it to different city/country or something (things that have happened). Some apps offer tracking of the courier (can be nice to have) and give features that 'bespoke' options don't have. Also, you get reviews and discoverability of options. I can go to a different city and see all the delivery options immediately. Unlike a lot of people here, I've had great experiences with food delivery apps. Not doordash (not a thing where I live), but others. I knew people working as delivery bikers and they said it can be a decent way to earn a living while you're studying. The flexible nature of the work lends itself well to that.

smm11 4y ago
'Bespoke' used to mean something else. From now on, "duck" means my toaster blew a fuse again.
- jachee 4y ago
  I’ll bite. What do you believe is the meaning of ‘bespoke’ as used here?
  - smm11 4y ago
    It's used here in the most current meaning. Not "to speak for," or "nice stuff," but for "limited, hurry and get it." Two and three are melding a bit, but the word has been twisted and abused, and for some reason liked enough by influencers now that it's come around again. Sort of like Toto's Africa.
sharemywin 4y ago
if your a traveler then yes. it absolutely makes sense. Totally would use big app to check out the restaurants reviews although google does reviews too.

amelius 4y ago

A brand is basically a monopoly on a part of your brain. There are only so many brands that fit inside a person's brain, so for every category there's usually only one brand in memory.