Our restaurants are failing. Why should food delivery apps thrive?
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Re: Our restaurants are failing. Why should food delivery apps thrive?
#2I thought delivery apps aren't making a profit either.
Re: Our restaurants are failing. Why should food delivery apps thrive?
#3Our city has some local restaurant driven “drop points” for getting lots of restaurant prepared meals at a margin better for restaurants. Please see if your city has something similar as an alternative to grubhub, etc
Re: Our restaurants are failing. Why should food delivery apps thrive?
#4It’s easier to prune the leaves than to cut out middle branches.
Re: Our restaurants are failing. Why should food delivery apps thrive?
#5As restaurants open a bit, tables will be scarce due to distancing. Restaurants should charge a premium for their limited space.
If I could have a nice meal out right now, I’d probably spend 2x what I would pre covid! Anything just to do something nice away from home.
Re: Our restaurants are failing. Why should food delivery apps thrive?
#6They thrive because people are lazy - both restaurant and their customers. Restaurants can make a concerted effort to ask regular clients to order from their own websites/apps but rarely do even when they can make an extra 10-15% after giving the customers 10% off.
Customers are lazy because inspite of all the talk of supporting local, they are too hooked on click-click-click and ordered.
The delivery apps have hundreds of millions in investment in technology and marketing, a lot of it shady. The apps can offer addictive flows that restaurants cannot compete with.
The solution out of this is an app co-op model - payment processing (3%) + 2-3% overhead. There are similar offerings in the ride-share world and this should work on the delivery apps as well. I would rather support an app that provides a healthy living to a small company in Tulsa or Talinn that subsidize rents in SF and fatten VC portfolios for an online menu with checkout supported by hundreds of millions in marketing dollars.
Re: Our restaurants are failing. Why should food delivery apps thrive?
#7So capping delivery fees on unprofitable delivery platforms now means they lose more money or they cut the pay of the drivers.
The only answer is shockingly enough for both the delivery services and the restaurants to charge enough to be profitable and then people will have to choose to get out or pay the market rate. Capitalism is the answer.
On the other hand, since I am a bleeding heart capitalist, I have no problem with the government giving people money who can’t or shouldn’t go out to make it easier for them to get delivery.
Re: Our restaurants are failing. Why should food delivery apps thrive?
#8I thought the whole point of capitalism is that you don’t have to answer “should” moralisms about any particular business. Consumers will decide and competition among vendors will drive down prices. Why do so many outsiders feel so confident that they know better than Grubhub/Uber Eats/DoorDash what their prices should be?
Re: Our restaurants are failing. Why should food delivery apps thrive?
#9Food delivery is a complex, three-sided marketplace problem area. Balancing the needs of all stakeholders, especially during a time of consistent innovation is challenging.
Re: Our restaurants are failing. Why should food delivery apps thrive?
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