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DoorDash from Application to IPO

blog.ycombinator.com

211–220 of 277 posts

Re: DoorDash from Application to IPO

#211
post #15

As a customer, DoorDash is just consistently a terrible experience. I have the DashPass, which was advertised as free delivery for many restaurants. Turns out it only works if you spend $12, and even then sometimes it doesn’t apply. If you check prices between the app and the actual restaurants’ websites, there’s often an extra $2-3 added on for each item on DoorDash (I don’t blame the restaurants). When it’s all sai…

Where do you live? Here in Scottsdale, Doordash delights me with their great service. Things are tougher for their drivers in San Francisco and other dense cities where they can't easily park, then have to deal with a confusing array of call boxes to enter the buildings.

Re: DoorDash from Application to IPO

#213

My 2 cts on the long term play of Doordash: The long term trend is that (primarily take-out) restaurants will decline and be replaced by ghost kitchens. The unit economics of ghost kitchens is much better than paying rent for prime real estate. You can run a ghost kitchen from a warehouse. This trend was already underway before covid [1] (see also Travis Kalanick's investments in this space) but has been 10x accelera…

As a person that spent time in the Industry as well as did/does logistics and supply chain management I agree with your assessment. After the short-lived breather the PPP program allowed the Industry to have, few restaurants really saw the writing on the wall: after the summer season the shutdowns were inevitable either way due to the lack of dine in option or a forced 50% capacity. This was not sustainable in a business with razor thing margins and large overhead.

The only ones that are going to survive are the ones with large outside investment, where they're attached to a Corp with other forms of revenue--this is exactly the model of where I last worked, and only the flagship(s) and 2 other bistros remain after most had to shutdown. Everything else got the axe.

On the other side of the spectrum, cheap(er) eats, its a race to the bottom and a re-structuring of how to deliver. I have friends with restaurants and they offer curbside pick up, but are now also thinking about how to deploy a meal-prep type solution. A sort of interactive blue apron model with videos online to walk them through the process. Perhaps creating a community facebook page/social media presence to spread the word, I proposed it as a 'chowhound meets flickr' idea.

It's a sad situation, and the Industry needed a much needed overhaul given the amount of waste and abuse within it. But even I agree this was too high of a cost to pay. I'm just glad that I hit a high water mark that I can leave with my head held up high and can be satisfied with what I did as a chef in several countries on two continents.

DD is not a sustainable without tons of VC money to burn, their app is utter garbage, their fee policy on merchants exploitative, and the drivers are treated and paid well below even Industry standards who had their tips stolen while assuming no liability--VERY limited protection if an accident occurs while on delivery. Softbank created a poorly structured logistics solution that took a lot of marketshare without caring it was a money-pit with little to no potential ROI unless its IPO is a homerun, which Softbank will probably use to exit from its investment.

We are living through yet another absurd financial era, like 2008, where the Market is so filled with cheap money that it is flooding into any ponzi scheme that shows even a glimmer of short-lived profitability gets flooded with funding and investment, all while 1/4 of the US population is out of work and unemployment continues to rise everyday.

Re: DoorDash from Application to IPO

#214

My 2 cts on the long term play of Doordash: The long term trend is that (primarily take-out) restaurants will decline and be replaced by ghost kitchens. The unit economics of ghost kitchens is much better than paying rent for prime real estate. You can run a ghost kitchen from a warehouse. This trend was already underway before covid [1] (see also Travis Kalanick's investments in this space) but has been 10x accelera…

When Doordash can deliver food from restaurants around the world straight to my door, they can be the "app store" of virtual (kitchen) brands.

Right now DoorDash can't even offer 90% of local restaurants and zero of my favorites - it's just Groupon 2.0.

Re: DoorDash from Application to IPO

#215

My 2 cts on the long term play of Doordash: The long term trend is that (primarily take-out) restaurants will decline and be replaced by ghost kitchens. The unit economics of ghost kitchens is much better than paying rent for prime real estate. You can run a ghost kitchen from a warehouse. This trend was already underway before covid [1] (see also Travis Kalanick's investments in this space) but has been 10x accelera…

Maybe.. I see a lot of take out store fronts with food trucks and door dash. I still see restaurants post covid, just at smaller capacities. A lot of restaurants in the suburbs have plenty of space.

Also bars are a major component of restaurants too.

Re: DoorDash from Application to IPO

#216
post #110

Another example of tech "disruption", which typically just means siphoning money from an established system and adding little in return.

You were able to get sushi, dim sum, boba, bagels, or even steaks promptly delivered in a few clicks before 2013? DoorDash is an easy example of a startup that has made my life better, especially during a pandemic.

I was able to get many things delivered for free by the restaurant pre 2015. I can’t even get pizza delivered anymore unless I want BigCo pizza, or pay doordash’s overheads.

Re: DoorDash from Application to IPO

#217

Earlier quoted context omitted.

How exactly is tech pouring fuel on the fire though? If DD simply didn't exist, what better option would these closing restaurants suddenly have? Like you said here, with DD around it does give some restaurants a lifeline they wouldn't otherwise have. Plus the government gets more tax revenue, over time some large percentage of the currently $60B valuation created by Doordash, which could be used to help the rest of…

I think the implication wasn't that DD was pouring fuel on to the fire of "restaurants closing", but rather that when they, a company that works with restaurants (many of which are closing) are doing so well that they can IPO to the tune of $60B and make their founders/investors VERY rich, this can pour fuel onto the fire of "tech companies making money at the expense of others". I feel that regardless of your feelin…

If DD didn’t exist it’s be someone else.. but if there was no delivery most people would pick up take out like before. I don’t mind paying a delivery fee. It’s kinda like the tip when you dine in person..

Re: DoorDash from Application to IPO

#218
post #110

Earlier quoted context omitted.

You were able to get sushi, dim sum, boba, bagels, or even steaks promptly delivered in a few clicks before 2013? DoorDash is an easy example of a startup that has made my life better, especially during a pandemic.

I was able to get many things delivered for free by the restaurant pre 2015. I can’t even get pizza delivered anymore unless I want BigCo pizza, or pay doordash’s overheads.

Most of the pizza joints by me in LA are on Slice or Chownow. I'm surprised more restaurants aren't on Chownow, really, with the flat monthly fee structure and no commissions. Is it hard to get enough order volume to make that worth it?

Re: DoorDash from Application to IPO

#219

Earlier quoted context omitted.

Would be comically villainous to have humans siding with the virus against fellow humans

When people are sufficiently separated and it doesn’t affect them, people can make very poor decisions on the fate of others.

True
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