Earlier quoted context omitted.
> you basically just "borrowed" money from your vehicle. so wouldn't it then make more sense to just sell the vehicle for $10003, then place that money in an interest earning asset like a bond, rather than "borrow" from the value of the vehicle?
No, because you need the cash now. Doesn't matter that you will have thousands more in a few years when you don't have money to buy food now.
What DoorDash pays, after expenses, and what’s happening with tips
151–160 of 572 posts
Re: What DoorDash pays, after expenses, and what’s happening with tips
#152I think legislation is needed for 100% of "gig economy" platforms to in real-time state to the customer exactly how much the service provider is getting paid: how much if my Lyft driver getting - and what cut is Lyft taking, etc.
Why should the customer care? The driver is the only one in a position to decide if it's a good deal.
Re: What DoorDash pays, after expenses, and what’s happening with tips
#153This is why when I do order from Doordash, I only tip in cash and make sure to write it in the comments. Still the best online delivery by me even if they are a shit company. Hate Grubhub more.
Re: What DoorDash pays, after expenses, and what’s happening with tips
#154Earlier quoted context omitted.
That doesn't make any sense. It's a choice for restaurants to sign up and they have like 10 services to choose from. If it's not good for the restaurants they'll just stop using it. Any marginal delivery is pure profit for a restaurant.
> If it's not good for the restaurants they'll just stop using it. it's not that it's not good, but that they noticed the delivery funnel is growing (and foot-traffic funnel correspondingly shrinking). This means if they don't participate, they risk losing this revenue stream to their competitors (who do participate). This is what happens when your business becomes a commodity to another business. You have to make su…
'Commoditize your complements' was mentioned in this 2002 article by Joel Spolsky:
https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/
Re: What DoorDash pays, after expenses, and what’s happening with tips
#155> “These orders don’t pay for our expenses or our time. We actually lose money when we take those orders. If I pick up an order that is 10 miles away and deliver it 6 miles I’m traveling 16 miles for a $3 order — so I have lost money. I’m in the negative when I account for gas, wear and tear, and other expenses. Not to mention my time.” This begs an obvious question: why are people choosing to do this if it pays $0/h…
"However, if a worker rejects too many jobs too frequently, they may receive fewer job offers as a result." They take those jobs because they lose all access to the chance of profitable jobs otherwise. The people working for door dash aren't exactly the sort of person with the ability to fully understand probabilities and statistics either. I'd say it's fair to assume their business model works by bullying the same p…
Re: What DoorDash pays, after expenses, and what’s happening with tips
#156What I struggle with is why anyone would deliver for Door Dash if the pay is so bad. The article closes with a statement that they want $15/hour plus expenses for drivers. The obvious problem is that I can’t see customers paying that much for delivery - ie. at those wages Door Dash can’t exist. The fact that people choose to do the work makes me think there are people who find it worthwhile, and I can explain a few s…
Recently Safeway has also made a move to use Doordash. My parents have used Safeway's delivery for years and the change is terrible there for a different reason: an order from a grocery store is likely to be 10-20x bigger and more expensive than an equivalent restaurant order. The scale turns it into a fundamentally different job - how much you're lifting, the best type of vehicle, the value of the cargo, the emphasis of the throughput/latency equation. Each time since, when they get an order, it's by someone in a hatchback who is unused to the work. Safeway drivers previously did not accept tips, and so one of the big draws of Doordash is missing. Since the stores have handed off the customers to Doordash, updates on delivery status have become more difficult to get.
Identity is a pretty critical element to this, it turns out. If the restaurant knew their regular deliveryperson and could coordinate that info, they wouldn't send out wrong orders. If Safeway could specify drivers from a pool of truck drivers with freezer units and connect the customer to them directly, as they had before the change, there would be less of an unknown in ordering from them.
On the other hand, it's a case of "it can probably only go up from here" since competing on quality is likely to become the case if the economy stays fully employed and regulation starts creeping in.
Re: What DoorDash pays, after expenses, and what’s happening with tips
#157Earlier quoted context omitted.
"The obvious problem is that I can’t see customers paying that much for delivery - ie. at those wages Door Dash can’t exist." I am 100% ok with DoorDash and that entire market not existing. We somehow managed without it just 3-4 years ago and it's not like Americans need another ridiculously unhealthy eating option provided with even greater convenience.
Pizza, Chinese food etc. delivery has existed forever, and the model for drivers was always the same - get paid nothing and rely on customers tipping you. Now there are billion dollar brands and fancy apps, but on the whole nothing has changed.
Re: What DoorDash pays, after expenses, and what’s happening with tips
#158Earlier quoted context omitted.
No, because you need the cash now. Doesn't matter that you will have thousands more in a few years when you don't have money to buy food now.
So you'd place only 95% of it in a bond. That's not the problem with the idea, the problem is that you need a car .
Re: What DoorDash pays, after expenses, and what’s happening with tips
#159> “These orders don’t pay for our expenses or our time. We actually lose money when we take those orders. If I pick up an order that is 10 miles away and deliver it 6 miles I’m traveling 16 miles for a $3 order — so I have lost money. I’m in the negative when I account for gas, wear and tear, and other expenses. Not to mention my time.” This begs an obvious question: why are people choosing to do this if it pays $0/h…
> This begs an obvious question: why are people choosing to do this if it pays $0/hr? The obvious answer is that it actually pays more.
I'm sure the churn is huge because the pay isn't there.