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Third-party food delivery remains an uncertain business

26 点作者 XnoiVeX大约 4 年前

7 条评论

paxys大约 4 年前
- Restaurants have to pay a big chunk of their margin to delivery apps.<p>- Consumers see increased food prices and other misc charges, greatly inflating their bill (sometimes up to 2x), and get a sub-par experience (long delivery times, cold food, incorrect orders).<p>- Drivers get no benefits, have to pay for fuel&#x2F;depreciation&#x2F;taxes, and sometimes end up making less than minimum wage.<p>- Uber Eats, Grubhub, Doordash etc. all lose billions of dollars every quarter (and are still valued in the tens to hundreds of billions).<p>I genuinely do not understand this industry.
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sharemywin大约 4 年前
Here&#x27;s the thing. Most food doesn&#x27;t deliver well. So what delivers well? Pizza, Wings, Subs. and some Chinese food. Who already has their own delivery drivers usually. And when they do they run 3 and 4 deliveries at a time. way more efficient.<p>Right now the dynamic has a lot of power towards the delivery services. So, restaurants will subsidize some of the delivery cost to sell the food. But in a few months a lot of the restaurants are going to be crowded as F. because there are less restaurants to compete with. So, most deliveries are going to cost $7 plus tip or more. and it won&#x27;t be as good as right from the restaurant.<p>And I see some of the service really pushing their own shadow stores because they can make profit off that.
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acchow大约 4 年前
&gt; “In 60 years,” CFO Stuart Levy said on Thursday, “we’ve never made a dollar delivering a pizza. We make money on the product, but we don’t make money on the delivery.”<p>Domino&#x27;s charges a $5.99 delivery fee whereas UberEats is charging me a $4.05 service fee plus a $3.49 delivery fee plus $2 CA Driver Benefits bringing its total fees to $9.54.
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endisneigh大约 4 年前
It seems to be that the primary driver is an aversion to social interactions but a desire to have the food. I wonder if vending machines could make a come back, hah.<p>In all seriousness - are there vending machines that serve warm food in the USA? I know these exist in Japan, but have never seen one in SF, NYC, Boston or Chicago (not that I checked every inch in those places).<p>An interesting idea would be to use statistics to find out what categories of food are popular at specific complexes (apartment or housing) at specific times. Then restaurants could bid to get space to put prepared food in the &quot;mystical vending machines&quot; at the predicted quantity with the predicted types of foods that would sit well.<p>Then you don&#x27;t even need your food to be delivered. Just go to the thing and get it. Done.
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aaron695大约 4 年前
&gt; “In 60 years,” CFO Stuart Levy said on Thursday, “we’ve never made a dollar delivering a pizza. We make money on the product, but we don’t make money on the delivery.”<p>This is playing with words. HR at any company never made a profit. Doesn&#x27;t mean recruiters are an uncertain business.<p>I do think looking at pizza delivery is interesting. And I also think Dominos is interesting, although they are becoming a little cult like.<p>Pizza is delivered because the food fits with delivery. It would be interesting to look to see if Domino&#x27;s or pizza in general has changed to make it better for delivery.
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tschwimmer大约 4 年前
I concur with the article. My frequency of online ordering has increased with the pandemic, but I can&#x27;t imagine doing it much after we can go back out. In some respects I&#x27;m the prime target for online ordering (young working professional) but in others I&#x27;m not (single, somewhat discerning in terms of food quality).<p>I&#x27;ve kept an informal tracker of deliveries I&#x27;ve received over the past year, noting issues and an overall rating for each order (good or bad).<p>A few insights:<p>1) In the past 20 orders, there has been some sort of issue in 15 of them. There has been what I categorize as a major issue in 10(!) of them. Major issues include missing items, incorrect items, &gt;30 delay over estimated arrival, delivered to the wrong place, a delivery person entering my house (!), hot&#x2F;cold food arriving at room temperature. Overall, execution quality is awful! I have basically come to expect poor service at this point, and I really question if I want to bother with the aggravation of delivery every time I order. When your convenience service is arguably not as convenient as just getting takeout yourself, there&#x27;s clearly a problem. In terms of fixing these issues, I don&#x27;t see an easy solution. A lot of the problem seems to stem from not having enough drivers. This is surprising since I live in the SF Bay Area, which I imagine to have a bigger driver population (perhaps mistakenly).<p>2) Quality varies a lot between delivery vendors and restaurants. Despite over a year of time to adjust to this new delivery-first world, some restaurants consistently make mistakes with orders again and again. Taco Bell seems to always forget an item or two, which is especially annoying given how marked up their food is on the apps. Chipotle and Sweetgreen have the best consistency. Uber Eats has the worst record among the delivery apps - I have recorded an abysmal 60% favorable experience rate with them. The biggest problem seems to be that they&#x27;ll happily send your order to the restaurant to be prepared but then take 40+ minutes to place that order with a driver. That&#x27;s happened to me multiple times and has led me to stop placing orders with them. The best is Doordash, though I suspect that this has more to do with them delivering Chipotle, which seems to have their delivery operations dialed in and holds up relatively well in transport.<p>3) Not captured in my data but of note is how many times I check the apps for dinner but decide to either cook at home or get takeout because of how expensive delivery is. I understand that getting food delivered is a luxury, but it feels really bad to pay above menu prices and then pay up to three additional fees. Often times the fees add up to 50%+ of the base food price. I think that scales a bit better if you&#x27;re ordering for two or more, but in my case I get sticker shock a not insignificant portion of the time I want to do delivery.<p>As I read what I wrote here I realize it comes off as spoiled and lacking perspective. It&#x27;s definitely true that in 2021 you can tap a few buttons and have food from any culture left at your door in less than an hour (sometimes, at least :P). It also ignores the problems encountered by restaurants and drivers. Really what I&#x27;m trying to say here is that third-party food delivery doesn&#x27;t seem like a long term sustainable business post-pandemic. There are too many hard problems associated with it that simply can&#x27;t be solved with technology (short of far future robotic automation).
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nickthemagicman大约 4 年前
If I lived in a big city where parking and traffic was a nightmare that&#x27;s one thing.<p>But I live in a small city and am not paying twice as much for the food to save a 10-15 minute drive to pick it up myself.
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