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Two guesses 1) Delivery businesses only make sense in dense urban markets. Think vertical Asian cities. You can deliver on foot, bicycle, or moped to multiple
by ozten 4y ago
Two guesses
1) Delivery businesses only make sense in dense urban markets. Think vertical Asian cities. You can deliver on foot, bicycle, or moped to multiple customers at once.
2) Low prices to drive growth at all costs instead of a fair price and slow growth as they serviced a small set of niche customers.
- comte7092 4y ago1. Is spot on, these types of businesses really only make sense in a few North American markets, ie NYC. The other issue is that to actually provision enough service to meet customer expectations on availability and speed, you need to economically over provision your workforce. Cities used to restrict the supply of taxi drivers intentionally in order to maintain driver wages.
- treis 4y agoWhat are y'all talking about? There's been food delivery in the suburbs for pretty much as long as we've had phones and cars. It's perfectly viable as a business. It's just not a 100 billion dollar business.
- comte7092 4y agoIt’s been a fairly limited enterprise to specific cuisines with limited competition. Flooding the market with supply and including restaurants who aren’t oriented directly towards a delivery model destroys margins.
- Ekaros 4y agoI think you need both dense market and low cost of labour. Dense cities are not enough alone if there isn't cheap labour also available at same time.