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Doordash and Pizza Arbitrage

themargins.substack.com

21–30 of 534 posts

Re: Doordash and Pizza Arbitrage

#21

What if you strip out the entire 'aggregation' and customer facing side of DoorDash/GrubHub/UberEats and rebuild them as complete back-end logistics services to the restaurants? You charge lower percentage of orders or just a monthly fee to help procure and pay the labor and route deliveries. Seems like that's the actual challenge for restaurants

ChowNow https://get.chownow.com/demo/ and Toast https://pos.toasttab.com/ do that

Re: Doordash and Pizza Arbitrage

#22
After reading more about how these delivery companies function, we stopped using Door Dash a few days ago. We found it very convenient during the pandemic, but we like our local restaurants and we thought we were helping them out by ordering delivery pretty often. So now we just order it as take-out and then we go pick it up ourselves. Screw Door Dash.

Re: Doordash and Pizza Arbitrage

#23

What if you strip out the entire 'aggregation' and customer facing side of DoorDash/GrubHub/UberEats and rebuild them as complete back-end logistics services to the restaurants? You charge lower percentage of orders or just a monthly fee to help procure and pay the labor and route deliveries. Seems like that's the actual challenge for restaurants

CloudKitchens fixes this.

I also find this really weird: its like load balancing between https://server1.example.com and https://server2.example.com instead of using a proper load balancer under the hood to get https://example.com

Re: Doordash and Pizza Arbitrage

#24

Reading the title, I anticipated this was going to be something along the lines of getting Domino's delivered for less than their delivery fee. (Side note, does anyone actually order franchise pizza on an app? They all already deliver for far less) But this was far more interesting. The fact that Doordash scrapes prices, and apparently doesn't verify... how does this happen? I'm not familiar with the reimbursement mo…

> Side note, does anyone actually order franchise pizza on an app? They all already deliver for far less

Seen it done a number of times at campuses as the GPS helps the pizza guy find you. Although the pizza guy usually has a very good idea of where the residences are anyway.

Re: Doordash and Pizza Arbitrage

#25

Reading the title, I anticipated this was going to be something along the lines of getting Domino's delivered for less than their delivery fee. (Side note, does anyone actually order franchise pizza on an app? They all already deliver for far less) But this was far more interesting. The fact that Doordash scrapes prices, and apparently doesn't verify... how does this happen? I'm not familiar with the reimbursement mo…

Anyone know if it would be considered fraud and/or illegal to exploit this? I would consider doordash and grubhubs tactics of falsely representing themselves as restaurants to be more unethical. It would be great if someone could scale a solution that would take those arbitrage opportunities and pass them on to the drivers and the restaurants.

Re: Doordash and Pizza Arbitrage

#26
post #20

The restaurants need to work through their own trade organization where they band together and push out the delivery businesses that are costing them money, and then allow delivery companies to bid for their business.

I suspect the larger restaurants have negotiated deals already, so they would not be amenable to this.

Re: Doordash and Pizza Arbitrage

#29

Honestly at times it seems like all these Uber for this or that, DoorDash and whatever other logistical services were created with the premise of just keeping people busy and making them feel like they have a job (one that often costs them money to work at). Once upon a time you started something and hoped to figure out how to scale and find product/market fit. These days with the cloud it’s become trivial to scale a…

> Honestly at times it seems like all these Uber for this or that, DoorDash and whatever other logistical services were created with the premise of just keeping people busy and making them feel like they have a job (one that often costs them money to work at).

Are you referring to customers or restaurants or drivers?

Re: Doordash and Pizza Arbitrage

#30
post #2

Do businesses have any recourse here? E.g. for the pizza situation - can a business ban DoorDash and its ilk?

It's an interesting question. I suspect there's some trademark arguments to be made regarding confusion as to who is providing the product and service and whose failures any mistakes reflect. That kind of attribution, and the product quality it promotes, is one of the central purposes of trademark law. But there's also the first sale doctrine--that after you sell your physical product, people can do with it as they p…

But doctrine of first sale does not extend to you fraudulently masquerading as the first-party seller.
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