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With DoorDash posting its first profitable quarter for a food delivery company leading up to its IPO, I'll repeat something I've said before:
Order directly from restaurants whenever possible
1/ Here's why
Order directly from restaurants whenever possible
1/ Here's why
2/ DoorDash currently has 50% of the food delivery market, and 58% in the suburbs
In May, I wrote that whichever delivery giant gained the majority of the market would have two choices to make the sector profitable...
In May, I wrote that whichever delivery giant gained the majority of the market would have two choices to make the sector profitable...
3/ First choice: Redirect the money it’s spending on SUMMER25 promo codes toward improving order quality and buttressing restaurants’ bottom lines
Second choice: Take advantage of their position by focusing on their $$$, not restaurants'/delivery drivers'
Second choice: Take advantage of their position by focusing on their $$$, not restaurants'/delivery drivers'
4/ Considering DoorDash is still charging restaurants commissions as high as 30% per order, I'd warrant they went with the second option
That 30% makes it hard, if not outright impossible (depending on the order), for restaurants to net any profit
That 30% makes it hard, if not outright impossible (depending on the order), for restaurants to net any profit
5/ My take: While I don't think there's a problem with paying for a middle man to courier coffee, restaurants need a better deal
P.S. If you order directly from a restaurant, don't click on their Yelp phone # (oftentimes, that'll give a cut to Yelp)
P.S. If you order directly from a restaurant, don't click on their Yelp phone # (oftentimes, that'll give a cut to Yelp)
+ I wrote more on this for @MorningBrew, drawing from @ranjanxroy's excellent Pizza Arbitrage piece https://www.morningbrew.com/daily/stories/2020/05/22/no-winners-delivery-app-food-fight
+ To humanize the issue, I recommend listening to this episode of the daily: https://www.nytimes.com/2020/05/15/podcasts/the-daily/virus-louisiana-reopening.html
