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This isn't for grocery delivery, this is to compete with local couriers, and it's priced accordingly. http://breakawaycourier.com/courier-delivery-rates/ http:

This isn't for grocery delivery, this is to compete with local couriers, and it's priced accordingly. http://breakawaycourier.com/courier-delivery-rates/ http://breakawaycourier.com/courier-delivery-rates/ quotes $12 minimum in Manhattan (compared to the $15 minimum of Uber's courier service in Manhattan) which is comparable in price. I suspect a bike messenger would be quicker than a car messenger in Manhattan, but that's conjecture. My local grocery store can deliver inexpensively (or even for free) because they're making a hefty markup on my coffee and bottled water. Similarly, Instacart appears to add markup into the price of it's items: "Yes, Instacart prices are our own and vary from the store’s price" (from the site you quote.) So, it seems that $15 to $30 could certainly be a practical delivery service.

seventytwo 12y ago
And the courier market is how big?
- deleted 12y ago
  [deleted]
opendais 12y ago
You think 25% more expensive is a "comparable price"? I think we'll have to disagree on that. ;) Similarly, the "hefty markup" at my local grocery store is....drum roll please...the same price I pay at the store. Similarly, I can get similar same-day service from other shops in the general area if I buy sufficient quantities of goods. Admittedly, it requires a phone call and slightly more effort but they are frequently willing to split the bill for the courier to make the sale.
- ethomson 12y ago
  So what you've established is that only an idiot would order groceries through Uber Courier. Which means that we agree that you're not the target market. Edited to add: 25% more expensive may be comparable, depending on how it scales. The price of a bike messenger goes up significantly if you want a rush, something larger than a legal-size document, etc.
  - opendais 12y ago
    > Breakaway’s same day courier delivery services, including bicycle and foot couriers, allow for easy, same day courier delivery of small packages less than 15 lbs. http://blog.uber.com/RUSH http://blog.uber.com/RUSH "Your messenger will be on bike or on foot, and will not be able to deliver some oversized items" It is a bike messenger v. bike messenger situation. Eh? Seems similar to me. What I've been getting at here is Uber doesn't have a competitive advantage. It isn't cheaper. It isn't better. It doesn't even have first mover advantage. Sure, it'll make some money but not enough to justify a massive valuation that it has.
pcrh 12y ago
Uber's model is to capture the economic rents previously captured by taxi companies. A similar situation doesn't exist for delivery services, which considerably reduces the relative advantage of their app .

seventytwo 12y ago

And the courier market is how big?

deleted 12y ago
[deleted]

opendais 12y ago

You think 25% more expensive is a "comparable price"? I think we'll have to disagree on that. ;) Similarly, the "hefty markup" at my local grocery store is....drum roll please...the same price I pay at the store. Similarly, I can get similar same-day service from other shops in the general area if I buy sufficient quantities of goods. Admittedly, it requires a phone call and slightly more effort but they are frequently willing to split the bill for the courier to make the sale.

ethomson 12y ago
So what you've established is that only an idiot would order groceries through Uber Courier. Which means that we agree that you're not the target market. Edited to add: 25% more expensive may be comparable, depending on how it scales. The price of a bike messenger goes up significantly if you want a rush, something larger than a legal-size document, etc.
- opendais 12y ago
  > Breakaway’s same day courier delivery services, including bicycle and foot couriers, allow for easy, same day courier delivery of small packages less than 15 lbs. http://blog.uber.com/RUSH http://blog.uber.com/RUSH "Your messenger will be on bike or on foot, and will not be able to deliver some oversized items" It is a bike messenger v. bike messenger situation. Eh? Seems similar to me. What I've been getting at here is Uber doesn't have a competitive advantage. It isn't cheaper. It isn't better. It doesn't even have first mover advantage. Sure, it'll make some money but not enough to justify a massive valuation that it has.

pcrh 12y ago

Uber's model is to capture the economic rents previously captured by taxi companies. A similar situation doesn't exist for delivery services, which considerably reduces the relative advantage of their app .