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DoorDash Raises $40M, Led by Kleiner Perkins Caufield and Byers

blog.doordash.com

41–48 of 48 posts

Re: DoorDash Raises $40M, Led by Kleiner Perkins Caufield and Byers

#41
post #17

Earlier quoted context omitted.

In that case you should assume that FedEx will put them all out of business. There's a lot more going on than "delivery".

I wouldn't assume that. Fedex has many constraints on its business, and shares almost no core competencies with DoorDash or Uber. Its fleet consists not of nimble passenger cars, but of large, fuel guzzling trucks - making one-to-one pickups and deliveries inefficient and unprofitable. It also has no expertise in the area of recruiting independent contractors to perform work for it, which is one of the core competenc…

I feel like your post highlights one of the glaring problems with the SV/SFBA echo chamber.

Uber, DoorDash, whatever, they're services glued together with server-side logic and mobile apps.

Fedex, UPS, and I'll even lump Amazon in there. These are logistics powerhouses. Their physical world equipment isn't a liability, its their advantage. Fedex and UPS have knowledge on how to manage a fleet of hundreds of aircraft, thousands of long-haul tractor trailers, tens of thousands of local delivery trucks, and hundreds of thousands of employees.

Your app does not have that. You have users. You have VC money. And while you might think you're more agile than logistics dinosaurs, they have the upper hand. Good luck.

Re: DoorDash Raises $40M, Led by Kleiner Perkins Caufield and Byers

#43
Surprised not to see a mention of Postmates here. At least in San Francisco I'd consider Postmates to be the front runner for door-to-door delivery services, followed by Door Dash (sort of an Uber v. Lyft dynamic).

I am not a frequent customer of either but I actually do occasional bike deliveries for Postmates (about 5 deliveries a week, on the weekends). Postmates has insane demand, whenever I sign on the deliver my phone is practically exploding with orders, even when they turn on 'blitz' pricing (and it's not cheap to begin with). The product seems simple but I am very impressed with Postmates' logistics.

Postmates basically has a comprehensive listing of not only all the places to buy things in the city (mostly food but not only) but they know the full menu, item by item pricing, if they accept cash/credit, open hours etc. So you can place highly specific orders. Postmates gives each courier a credit card which they load with about how much money you will need for a given delivery on demand so you can pick up an iMac or a burrito through the same process. They also have a 24/7 customer and courier support network. So if I get a flat tire on my way to deliver a sandwich they can actually try to get another Postmate courier nearby to come finish the delivery.

And recently Postmates has started working closely with some restaurants to provide "turbo" jobs, where the restaurant knows the order is for postmates, provides postmates with an ETA for when it will be ready, which means I can get an order saying "Go to XXX restaurant, the sandwich is already prepared and paid for" and pick it up and go. This enables me to get food to most customers about 30-40m after they order it from anywhere in town.

Anyway those are just some things that came to mind. There is a lot more to it (scheduled shifts, tipping, etc). It all goes to show how interesting these seemingly simple ideas are from the inside.

Re: DoorDash Raises $40M, Led by Kleiner Perkins Caufield and Byers

#44
post #9

Earlier quoted context omitted.

Celebrities didn't embrace twitter for three years after it was launched. That counts as "very early"?

That must be why they didn't really grow until about 3 years after they were founded: http://static1.businessinsider.com/~~/f?id=4abbcbef60b187740... And yes, it was "very early" in their growth cycle. In fact celebrity embrace was the catalyst for their growth. No Ashton Kutcher = no Twitter today.

'eh. I think cause and effect are pretty hard to untangle here. Mostly I think you're wrong. But I'll admit that it's hard to bring real evidence to the table. There were a billion tweets before Ashton though and the celebs showed up because there was an audience to be had.

I can see your point of view though.

Re: DoorDash Raises $40M, Led by Kleiner Perkins Caufield and Byers

#45
post #18

It's disappointing to see that the biggest "disruption" in the logistics space involves shifting risk further down the economic hierarchy. The most difficult part of last-mile logistics has been capacity planning, both human and infrastructure. And yet, much of this risk is now being pushed down to the entities least capable of absorbing it - what is the opportunity cost of being "available" as a DoorDash driver for…

I'm scratching my head on this. The service has been terrible so far. Whether it's getting lost because Google Maps misdirected them, or delivering cold food because they don't have insulated boxes, every delivery I've had has problems. In their defense I get a discount every time, but I've stopped using them as a result.

Is it the scheduling software or sub-contracting system that makes them so valuable?

Re: DoorDash Raises $40M, Led by Kleiner Perkins Caufield and Byers

#46
post #11

My favorite part of DoorDash is how they got the tipping right. Add it upfront and then they just quickly drop off the food. Munchery is awkward because you're never sure if the person that ordered it included the tip and the driver is hanging around awkwardly making small talk.

Munchery is upfront in app too.

Re: DoorDash Raises $40M, Led by Kleiner Perkins Caufield and Byers

#47
post #36
post #25

Earlier quoted context omitted.

My brother-in-law quit a traditional job to drive for Uber, so he must think it's better. (also, he told me that for the first time, he's excited to work in the morning) It's a pretty competitive market -- if a service doesn't provide enough work, they won't be able to retain drivers (plus many people drive for multiple services, especially Uber/Lyft drivers).

This is a case where money and happiness aren't really correlated. Remember, people get addicted to variable reward schedules, and get bored of fixed reward schedules. Want someone to be more excited to go to work? Flip a coin to determine whether they get paid each day!

This is also why games put random drops in your grindable content.

And why despite the satiric premise behind http://progressquest.com/ it is weirdly addicting.

Re: DoorDash Raises $40M, Led by Kleiner Perkins Caufield and Byers

#48
post #5

My wife and I used DoorDash pretty extensively when we first moved to the bay area, we were living out of a hotel for a few weeks. It was interesting how our reactions to the site differed. I was just happy to have a one-stop list of delivery restaurants with no phone calls, no complicated payment info, etc. Her reaction was "There's no pictures! I just want someone to tell me what I want to eat!" Now, whenever I go…

"I just want someone to tell me what I want to eat!"

"Sure, there's 50 restaurants near me that I can order from, but all I really know is that I'm hungry right now. Some help choosing would be nice."

We just linked to your comment on our YC application because we're solving this exact problem. Contact me (see profile) if you're interested in being part of the private beta.

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