I still dislike DoorDash. Very expensive and they do things like having people who have no business delivering things to deliver them. Once I had two delivery people who clearly didn't care... one took a plastic bag that was once in a ball (and literally looked like he used it elsewhere first)... I had a burger and fries delivered.... they had it in a paper bag from Five Guys and then put it in a plastic bag and tied it up tight. Now, anyone who has had french fries delivered knows that this will cause the steam or whatever to make all the fries soggy and make the paper bag fall apart inside.
They did this twice and it was very shitty quality. I mean, really bad.
Then on top of that, they charged $5 for delivery which I wasn't thrilled with but I had to work from home and couldn't go anywhere... but then whatever I did leave as a tip was absorbed into the minimum amount they give the driver... The CEO admitted this on TV that this was their policy (and it was right before this blew up in the media)... so I figured... basically I'm subsidizing the company and the driver isn't necessarily getting this (I have no idea). So I never tip the driver anymore.
I'd rather just go to the food place and go get it.
Yeah, this article is preaching to those that are already in the "fuck doordash" camp. Which i am definitely a part of, but the article assumes the same feelings, mixes it with this individual's story, and doesn't explain why this is a victory story.
The pizza place didn't have delivery, but DoorDash imposed it on their own through their service. At the restaurant pizza costs $24, but DoorDash had it priced incorrectly at $16. Any time someone ordered a pizza on DoorDash they would pay $16 and DoorDash would have to order the pizza from the restaurant directly for $24. DoorDash was losing money on each pizza sale. By buying the pizzas themselves the restaurant was paying $16, but immediately getting $24 for the sale - instant $8 profit.
You should honestly teach because you explained that to me perfectly, thank you. I didn’t know DD biz model was to take the money, and then purchase from the restaurant after the fact. Very interesting.
Haha, I'm glad I could help. I don't really understand the full DD business model either. The article makes it seem like restaurants can choose to partner with them (which I imagine would give DD a cut of the sale or something) or refuse. If they refuse it seems like DD can just purchase from the restaurant like a normal customer would, but I don't understand how DD makes any money in that case. Either way I don't understand the incentive a restaurant would have to partner with DD.
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The old schtick that the bad sign of corporations is how much profit they are making is generally not true anymore. Now, the real way to create incredible stock wealth is to sell products at a loss using VC money, take over market share, create a huge company valuation (AirBnB, Uber, DoorDash, etc.) and the sell the stock.
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This is just a reminder that DoorDash's business model isn't about getting good food from good businesses to good customers – it's propping up their numbers so that they can have a bunch of VCs shovel 100s of millions of dollars into a business that is just BURNING through money, while those at the top of the business fly away with golden parachutes. It's a broken system.
I really don't understand. He normally charges $24 per pizza, per the article, how does he make $8 profit from each pizza? How much does the pizza cost him to make? The math doesn't make any sense. If anything Doordash is loosing $8 every order but that does mean he makes $8.
His Pizzas cost $24.
Door Dash charged $16 for Pizza.
He pays Door Dash $16. Door Dash pays him $24. $8 difference.
Though it definitely doesn't take the cost of operations, ingredients and labor in to account.
No one has explained it yet! Haha this is so silly. My only question is for the “delivery” company employees—what amount will they allow you to put on a CC over the “listed” price? Once we know that, everyone can take advantage and profit.
BTW, anyone else reminded of that South Park episode with the gnomes?
Step 1. Make Pizza
Step 2. Order Pizza
Step 3. profit
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GrubHub... lost $33.4 million over the last 3 months. (In fairness: COVID-19.)
I don't understand the qualifier. Hasn't Covid-19 been a boon to delivery services? If they can't profit during these artificially beneficial market conditions (boosted demand and endless supply of minions to do delivery), how can they ever profit?
I live in Colombia. A couple years ago right before a new funding round (I guess looking to pump the revenue numbers), Rappi offered 50% cash back on unlimited purchases, up to $1000 per purchase. Bought a few iPhones and netted like 10k reselling them on FB, lot’s of people did too. How’s that for CAC.