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by halpmeh
1291 days ago
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Selling on door dash or uber eats destroys the pizza business model. Pizza is one of the only foods that is profitable to deliver. A pizza is extremely cheap to produce with markup that can be in excess of 1000%. This allows the pizza maker to pay a driver to deliver the pizza. The driver doesn't make anywhere near the cut Uber takes from each order. |
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This is true, and more: pizza is well suited to delivery versus other foods. For example, french fries age quickly, becoming unappealing in 10 minutes[1]. Chicken katsu ("chicken cutlets") travels so poorly my local shop sells them to go uncut. Between the The end result is that Dominos Pizza Inc outperformed GOOG in the past 5y[2]
Unfortunately, Pizza's viability and profitability in delivery service also undercuts your argument. That mom & pop Curry Pizza place someone mentioned _is_ on ubereats. I spent 15 minutes looking for a pizza place near me that wasnt on uber and failed. Even places that normally don't deliver are on it: Pasqually's is a ghost kitchen selling pizza and wings that is just Chuck E Cheese rebranded[3]. The margins are so high the logic is pretty simple: selling a pizza for only 500% profit is better than no profit at all.
[1]: https://www.npr.org/2019/10/23/772775254/episode-946-fries-o... [2]: https://g.co/finance/DPZ:NYSE?window=5Y&comparison=NASDAQ%3A... [3]: https://onezero.medium.com/the-artisanal-pizza-you-ordered-m...