It is a 3-sided market with high acquisition costs and high churn on all three sides - the restaurants, the drivers and then the users.<p>A better business model may be to focus on one of these and provide it as a service to the others. ie. a driver/delivery network for restaurant fulfillment.<p>Restaurants having to set themselves up on each platform seems like a waste - there is no reason why a standards based interface for dispatch and fulfillment couldn't be built.<p>You can then integrate the 'best of' for each component - ex. Yelp or Google Ratings for finding restaurants & Amazon for local delivery<p>Being vertically integrated just doesn't feel like what this market will look like in 5-6 years - too many challenges.
The biggest problem with these business models, in the long run, is they all target the same labor supply.<p>This is good for wages, but bad for their margins.