Saudi Arabia’s sovereign-wealth fund has pumped $400 million into Travis Kalanick’s new company CloudKitchens, valuing the operator of so-called ghost kitchens at about $5 billion and reuniting the former Uber chief with one of his biggest backers.
I work with several restaurant owners and a few have multiple brands on the platforms. One guy has 12 different restaurants across all food delivery platforms. He even is in multiple cloud kitchens(there’s a couple in LA) and his different restaurant locations to get the widest location area. He’s pretty clever actually as are a few restaurants who do this. The consumer has no idea where the food is made(often in the same kitchen). Does it matter? There’s no difference in quality especially if someone is getting food delivered. It matters to restaurants who have to pay rent and overhead and employees etc. Consumers want food cheaper. Owner wants to sell more food. This is a way to do that.
Chick Fil A leased out 3 kitchens inside the Hollywood Cloud Kitchens location. They tore the walls down to setup a bigger stove/cooking space. It’s easier to deliver food through the platforms that way then have drivers go to a restaurant location. On the same token though a woman started her own pizza place inside with a fraction of the cost of setting up a store front.
Corporate restaurants see the opportunity as well as someone who just wants in, to cook and make money at it. Location restaurants are panicking and rightfully have been due to the food delivery platforms. Change.
Reminds me of Kodak, Blockbuster etc.
Things are quickly changing though and the Saudis and other investment see what’s about to happen in LA and rest of States.
A bunch of “restaurants” are going to pull from the same inventory and charge different prices for the same crap out of a bag.
May not start that way - but give it some time and eventually a suit will “optimize” it for max profit.
Majority of the food you eat at restaurants is from the same provider: Sysco
This cuts out the restaurants work to put a spin on the materials Sysco sends. This will eventually be Sysco direct to consumer. But the same item prepared the same way will be sold in different ways with different descriptions and prices.
Where do you think this idea ends up? They will disrupt the food delivery market by subsidizing it with investor money. Then squeeze the market once they accomplish dominance.
We need some truth in advertising. These apps should call out clearly that the “restaurants” are all cloud kitchens.
And that the products they offer and the differentiation they put in the description of the same item - available at multiple “restaurants” from the same cloud kitchen - are true and they aren’t manipulating customers.
It’s the difference of selling a salad for $10 with spinach and the exact same salad - sold for $12 - but they wrote locally sourced spinach.
Who is going to make sure any of that is real and one person isn’t manipulating the entire order screen for an area?
It's almost like bike shops, where nearly all independent bike shops all sell much/most of their product from QBP, the giant corporate cycling monolith that most folks outside the bike industry have no idea.
Another part of the current scam is that restaurants that do t have a web presence they create new placeholder websites for them with elevated prices. If you use the web service to book you not only pay the delivery fee you also pay the higher price for the food listed.
Damn that’s fucked up. Makes sense that they eventually try scams like this. How else can you increase profit over time? You eventually start running out of ideas and some suit pitches this idea as a response to people avoiding these services.
If they are already willing to go so low, imagine what they can do with cloud kitchens? They can manipulate all of the prices and all of the competition to extract max profit from each area. You drown out the real restaurants.
You know how Uber’s grand plan is to ditch all of the drivers and switch to self-driving cars once feasible?
Grand plan here is to replace majority of their business with cloud kitchens.
You seriously underestimate how stupid people can be.
I had to help a guy input a discount code on my site. He owns homes in the Caribbean, New York, LA, and Brazil - wildly successful in business.
Took 30 mins to figure out he was adding an unnecessary space inputting the code. It was originally emailed to him with the instruction to copy it and paste it.
However dumb you think people are with technology - they are dumber than you can fathom.
Majority don’t see this shit. And if cloud kitchens notice it makes a difference - you don’t think they’ll find a way to obscure that fact?
Look at Uber. Drivers are just slaves now. Less and less money every year. Local and federal governments pick up the slack. How they calculate pay is in dispute.
It’s a plan that’s based on a confidence game but with billions of funding
> You seriously underestimate how stupid people can be.
> I had to help a guy input a discount code on my site. He owns homes in the Caribbean, New York, LA, and Brazil - wildly successful in business.
> Took 30 mins to figure out he was adding an unnecessary space inputting the code. It was originally emailed to him with the instruction to copy it and paste it.
You seriously underestimate how important good UX and CX are for an e-commerce site. If you have to explain it, it’s too difficult. All you had to do was disable the ability to add spaces in the text field for the code. Problem solved.
You missed the point. People are so dumb that you have to go out of your way as UX designers to hold their hands.
Nothing you say prevents anything I wrote. Stop kissing Silicon Valleys ass. Not everything is good for the world. They aren’t altruistic and trying to make the world better. It’s a business. It’s ruthless. If they can scam and make billions they will.
We have an opiate epidemic driven by one families greed. How many other scams that net billions and result in only millions of fines years later do we need to cite?
You don’t think they’ll game this system right away?
Another poster put up an article about how these food delivery companies are already running scams to extract more profit.
> You missed the point. People are so dumb that you have to go out of your way as UX designers to hold their hands.
You missed the point, that your personal experience doesn’t represent everyone’s experience. You made the basic mistake of allowing spaces when they fuck up your promo codes. If something isn’t allowed, turn it off. It’s easily argued you’re the stupid one who can’t design an e-commerce site with basic logic. I’m not arguing about anything else you said, so don’t roll out your jump to conclusions mat.
I will note, your approach to Silicon Valley and innovation in general is clearly biased. The majority will be all about the money, but to suggest the pursuit of innovation is always that way and never about improving the world is a total pile of shit. Plenty of people start companies with good intentions. Using the Uber douche as a representation of the entire industry is a joke.
You should figure out how to frame your point better. There’s entirely too much woke bullshit in your preachy posts to take you seriously.
>It buys cheap or rundown real estate, often near city centers, where it builds commissary kitchens—also known as ghost kitchens—that it rents to restaurants wanting to prepare food exclusively for delivery services like Grubhub Inc. and DoorDash Inc.
It helps no one! What bullshit is this and what the f are you smoking? Just like with Uber this piece of shit put can companies that paid people between 40 and 60k out of business and forced many of their employees to drive for Uber in which they now earn $30k per year doing more work. Fuck! Every time I say people can’t be that fucking stupid someone else like this pops up
I actually think a WeWork kitchen would be awesome. Great opportunity for aspiring business owners to try scaling up for, say, a catering gig or two, without needing to rent out and retrofit another space.
Yet we all use food delivery?! Don’t really understand how people are blaming one entity over another. If we all stopped ordering food because we’re too lazy to go to a restaurant or heaven forbid actually cook food ourselves we wouldn’t be in this “mess.”
But that won’t happen just like we’re never going back to taxis only. No one goes to restaurants!!