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by calvinmorrison 2214 days ago
The lure of more business for local restaurants. An uptick in orders and free advertising could certainly help!

The lure of a weekend job for drivers. I've done it and made out pretty well on my motorcycle for a few hours on the weekend.

consumers love apps and they love being able to have visibility into the status of their orders. They want to shop online for food and have it appear without of phone call, or to discover new restaurants around them. Sometimes they have favorite sit down restaurants that aren't take out spots - but know they might have a listing on a fancier food delivery service.

App creators: take a cut off of everything on the top without actually inventing or doing anything. A logistics company elsewhere caught charging this much would be laughed out of the room but in a new and exciting field there's a lot of room for markup.

Cheers!

1 comments

> A logistics company elsewhere caught charging this much would be laughed out of the room but in a new and exciting field there's a lot of room for markup.

I would argue that they are also the owner of many of the customers. DoorDash owns me as a customer simply because when I am hungry, I turn on the app and select from one of the offerings.

Grubhub’s CEO said on an earnings call that customers are “promiscuous” and not demonstrating loyalty to a single dining app, so while you have your anecdote, it doesn’t appear to apply across larger sample sizes.

https://www.reuters.com/article/us-grubhub-results/grubhub-b...

Sure, but are they also promiscuous about ordering from the restaurants themselves or just across apps?

I am also promiscuous across apps (DoorDash just because I got the DashPass for during the pandemic), but it has been years since I ordered anything other than pizza directly.

So the industry as a whole just owns the customers rather than the restaurant.