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There is no moat. How many people are "loyal" to uber/dd/etc? Most people just order from whoever is cheapest. Therefore, it is a race to the bottom and you ha
by makestuff 4y ago
There is no moat. How many people are "loyal" to uber/dd/etc? Most people just order from whoever is cheapest.
Therefore, it is a race to the bottom and you have to spend tons of money on marketing/promotions to gain customers. The app with the deepest investor pockets will win out.
If there was only one app for delivery and they didn't have to spend any money on marketing/promotions then I bet they could offer a profitable service for a reasonable price.
- coredog64 4y agoThere’s a moat, but not a big one: Smaller restaurants aren’t going to have the appetite to integrate with many different delivery services. If (big if) you can get a critical mass of those, then you can sell that service to chains that would otherwise do their own delivery.