3 ms·
> Why can't the takeaways just go rogue and offer independent deliveries? Because many of these delivery 'ad-hoc contractors'[0], sometimes even eating cost [1
by to11mtm 1y ago
> Why can't the takeaways just go rogue and offer independent deliveries?
Because many of these delivery 'ad-hoc contractors'[0], sometimes even eating cost [1].
Pre-covid, you were often best off as a business either doing something that was 'known' to be delivery offered (i.e. pizza) or your next best option was to aggressively advertise it and have an extra staffer on hand willing to do the deed.
Then, you've also got the other form of arbitrage (or perhaps a cost thereof), of smaller independent restaurants/chains being unwilling or unable to handle the costs of properly covering drivers [2] and their pay when not driving [3].
Some restaurants started doing delivery during covid and kept it going. However most around here dropped because the volume wasn't worth it to them, on top of the 'streamlined flow' (don't need to give a route, the app the person picking up the 'pick-up' order is handling, does that for them.)
I'm not saying I like it but I get how it got here.
[0] - Remember that in the early days some of these companies would do all sorts of weird things like just have someone order on behalf.
[1] - There's an article about this involving 'pizza arbitrage' here https://www.readmargins.com/p/doordash-and-pizza-arbitrage https://www.readmargins.com/p/doordash-and-pizza-arbitrage
[2] - To be clear, both the startups as well as locals have a checkered history when it comes to proper coverage...
[3] - One can argue that such a person can be made 'useful' during the waiting time, however it becomes a complicated equation between 'what can this person be paid to do' vs 'are they willing to do it for that base'.
- NaOH 1y agoRegarding your link to the article on pizza arbitrage, DoorDash and Pizza Arbitrage (2020) - https://news.ycombinator.com/item?id=40806356 https://news.ycombinator.com/item?id=40806356 - June 2024 (147 comments) DoorDash and pizza arbitrage (2020) - https://news.ycombinator.com/item?id=32086170 https://news.ycombinator.com/item?id=32086170 - July 2022 (230 comments) Doordash and Pizza Arbitrage - https://news.ycombinator.com/item?id=23216852 https://news.ycombinator.com/item?id=23216852 - May 2020 (518 comments)