Earlier quoted context omitted.
It was never a sustainable business model to begin with. It takes 10 minutes for a chef to make my meal, and 25 minutes for someone to come to the restaurant, pick it up, and drive it to my house. The only way it works is if someone else's time is an order of magnitude less valuable than yours.
>The only way it works is if someone else's time is an order of magnitude less valuable than yours. Targeting mainly the wealthy isn't necessarily a bad business strategy. It should also be noted that it's also useful for bulk order to people and those unable to physically move themselves to a place (disability, lack of car, etc). It's not a "use everyday" mechanism, but it has uses.
DoorDash raises minimum pay to $29.93 per hour in NYC
141–150 of 320 posts
Re: DoorDash raises minimum pay to $29.93 per hour in NYC
#142The platform fees and the insane menu price markups that restaurants apply for delivery app orders have made it impractical to use Uber Eats & DoorDash for a couple years now IMO. I only ever consider using them when offered at least 50% off. Mandated minimum earnings will benefit the drivers, but that won't help drivers that have to quit the platforms because people stop using them.
It was never a sustainable business model to begin with. It takes 10 minutes for a chef to make my meal, and 25 minutes for someone to come to the restaurant, pick it up, and drive it to my house. The only way it works is if someone else's time is an order of magnitude less valuable than yours.
I mean, you've basically just described the entire service industry and virtually any job in North American where tips are expected.
There is an entire class of people ready to serve you.
Re: DoorDash raises minimum pay to $29.93 per hour in NYC
#143Earlier quoted context omitted.
The basic concept of food delivery existed long before tech and VC and was viable. The only reason these companies can't turn a profit is because all those microservices, ads and "engagement" don't come for free.
Food delivery existed before platforms, but only where it made sense. You could order something like a pizza, where the marginal cost and effort required to make another meal was low, and the sales volume was high enough to justify using paid employees for delivery. Service area was also chosen by the restaurant itself to ensure that they would not spend too much time on a single delivery. In the end, it's pretty sim…
Re: DoorDash raises minimum pay to $29.93 per hour in NYC
#144A whole lot of people will lose income (no matter how mediocre) if this were to come to fruition though.
Re: DoorDash raises minimum pay to $29.93 per hour in NYC
#145Earlier quoted context omitted.
Not sure why you got downvoted, its true. These platforms are all a race to the bottom to capture market share and then jack up of prices to recover lost revenue. Overall, it ends up being a terrible experience for the customer and the driver/deliverer.
Because it’s not true anymore, and complaining about high prices for a service that is just moving up market kind of ignores the reality that a business can make fewer sales if its margins on the remaining sales are sufficiently high, which is exactly what has happened. In other words, delivery apps went through the “burn vc money” phase already, and are now focusing on profitability, and successfully so.
I have not eaten fast food in like 10 years, and never had it delivered.
Not really up market imo.
Re: DoorDash raises minimum pay to $29.93 per hour in NYC
#146The platform fees and the insane menu price markups that restaurants apply for delivery app orders have made it impractical to use Uber Eats & DoorDash for a couple years now IMO. I only ever consider using them when offered at least 50% off. Mandated minimum earnings will benefit the drivers, but that won't help drivers that have to quit the platforms because people stop using them.
It was never a sustainable business model to begin with. It takes 10 minutes for a chef to make my meal, and 25 minutes for someone to come to the restaurant, pick it up, and drive it to my house. The only way it works is if someone else's time is an order of magnitude less valuable than yours.
Ish.
There's clearly a logistics problem here. 1-meal being delivered promptly on time scales poorly. But 15 meals delivered to 15 different people within 45 minutes is in fact, a net gain.
Alas, Doordash and Uber have gone about it in all the wrong ways. Its the drivers who double-book this process (ie: picking up more orders than they can handle), leading to inconsistent quality, cold food, late deliveries and more.
Its a legitimate model though. A more "proper" company that's doing this officially is Foodsby, where one Restaraunt makes a single delivery to 15-ish people in one trip at a designated time and location (usually within 5 minutes walking distance of an office complex. IE: One particular office building has a Foodsby drop-off point).
Everyone pays $2 each, the driver is happy, the restaraunt is happy (their personal staff deliver and therefore ensure quality food / hot food at the appropriate, predesignated time), and a ~5 minute walk for a bunch of office workers is a good idea anyway cause we're all sitting on our asses all day.
---------
It double-benefits because professional chefs like doing ~15 or 20 of the same order all at once, its more efficient for them... especially if they can plan such an order ahead of time (Foodsby isn't offered every day for a Restaraunt, they pick-and-choose the days that they'll offer the service).
So the chefs can cut-down on scheduling if they're burning out, or they can plan ahead and offer more days if they know some days are lulls / they have extra freetime.
Doordash / Grubhub / Uber is almost malicious for everyone involved. There's some ideas of convenience to some people, but its not good enough for the overall environment. In contrast, Foodsby (and hopefully more companies that adopt that model) has proven itself sustainable, at least in my area.
Re: DoorDash raises minimum pay to $29.93 per hour in NYC
#147The implication that Dashers earn 2x more per hour than "other workers" earning minimum wage is false, since "other workers" are paid for 100% of the time they work, including when they are waiting for work.
Re: DoorDash raises minimum pay to $29.93 per hour in NYC
#148As an old person, I'd like to point out that my hometown of New York City had a dynamic, world class restaurant scene, including a cornucopia of home delivery, long before the tech platform companies found a way to siphon ~40% of consumer spend out of the local restaurant economy in exchange for some friction reduction. We were doing great. But you had a drawer full of paper menus and had to call the restaurant.
Re: DoorDash raises minimum pay to $29.93 per hour in NYC
#149Earlier quoted context omitted.
> a race to the bottom to capture market share That is the real problem, not that the concept of food delivery is unprofitable by itself.
Not sure where you folks live but all the major ordering apps present in Toronto have been excellent in the suburbs. I was fully satisfied at least 9 out of 10 times. And even the most expensive, ubereats is only, at most, a 20% surcharge compared to the in-restaurant price plus tip, for a $50 order.
Re: DoorDash raises minimum pay to $29.93 per hour in NYC
#150Earlier quoted context omitted.
It was never a sustainable business model to begin with. It takes 10 minutes for a chef to make my meal, and 25 minutes for someone to come to the restaurant, pick it up, and drive it to my house. The only way it works is if someone else's time is an order of magnitude less valuable than yours.
> The only way it works is if someone else's time is an order of magnitude less valuable than yours. Ish. There's clearly a logistics problem here. 1-meal being delivered promptly on time scales poorly. But 15 meals delivered to 15 different people within 45 minutes is in fact, a net gain. Alas, Doordash and Uber have gone about it in all the wrong ways. Its the drivers who double-book this process (ie: picking up mo…
In the same way you could propose to replace Uber with... buses? 15 people get on the same bus at a specific time and get dropped off within 5 miles, thus optimizing the process.