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by jldugger 1293 days ago
> pizza is extremely cheap to produce with markup that can be in excess of 1000%.

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...

1 comments

Because pizza is so cheap, you can undercut on price by not using Uber Eats. With other foods, they can't be delivered more cheaply than the Uber Eats price, so the only option for consumers is to pay the 30% markup + tip or not eat at all.