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Five companies now control over 90% of the restaurant food delivery market

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Re: Five companies now control over 90% of the restaurant food delivery market

#191

I think the truth is restaurant food delivery is a luxgury good, literally “private taxi for your burrito” yet many people spend like it isnt.

Seeing how many Gen Z people use food delivery services on a weekly or even daily basis was mind blowing to me. I’ve had numerous conversations where I’ve had to bite my tongue when younger colleagues complained about finances after also explaining that they DoorDash dinner nearly every night. It’s bizarre. Not all Gen Z, of course. Most of the younger people I’ve worked with have been generally smart about finances.…

Even the subtitle of this article basically enforces that fact:

> Why is my $8 burger $23 after fees - An average reddit user

As you say, it's a private taxi for your burrito. When you factor in the labor costs, gas/car maint costs, and the amortized cost of providing the service, it's hard to see why anyone would think $15 for an on-demand delivery in a major urban area is abnormal.

Re: Five companies now control over 90% of the restaurant food delivery market

#192
post #28

The food industry is due for a good old opensource disruption, where each restaurant can setup their private menu hub (like you would an instagram account), add their payment processing details, and start delivering their own orders. It's a win-win for the restaurant and their recurring customers.

The target audience for consolidated food delivery apps isn’t the person who wants to manage the fine details of ordering from 10-20 different local restaurants. The majority of people using these apps just want to scroll some restaurants and order something quickly. Saving 10% by going through extra steps, installing extra apps, going to a company’s website, and doing custom orders isn’t what most of their repeat cu…

Most consumer are just like that.

I'm the one who don't bother ordering directly to get better value, but I started noticing less and less restaurants (that I order from) having this option anymore.

They probably saw too little people using it and stopped accepting, sadly.

Re: Five companies now control over 90% of the restaurant food delivery market

#193

Earlier quoted context omitted.

> Big business does not concentrate wealth. They absolutely do. If for no other reason than each of their revenue goes to fewer entities. > What you're seeing is the creation of wealth. This created wealth then flows out into the rest of the economy, via paying the workers and buying plant&equipment, etc. This is the flawed reasoning behind "trickle-down economics"[0], which was called "horse and sparrow" in the 19th…

> Any company which has earnings beyond those of operating costs is a concentration of wealth by definition Let's say I buy $20 worth of art supplies, and I paint a landscape and sign it with my moniker, "bright". Since "bright" paintings are very rare and go for a million bucks each, I now have created a million bucks of value. Who did I transfer the wealth from? Nobody. I took nuttin from nobody. Yet I have become…

>> Any company which has earnings beyond those of operating costs is a concentration of wealth by definition.

For context, here is the second sentence related to the above:

  Whether that wealth is distributed to shareholders, kept as 
  retained earnings, or otherwise transferred to specific 
  entities is irrelevant.
I believe this relevant to the below.

> Let's say I buy $20 worth of art supplies, and I paint a landscape and sign it with my moniker, "bright". Since "bright" paintings are very rare and go for a million bucks each, I now have created a million bucks of value. Who did I transfer the wealth from? Nobody. I took nuttin from nobody. Yet I have become wealthy.

This scenario is not relevant to "big business", but instead describes a sole proprietorship with an assumption of a known fungible value. It also does not account for consumable goods and/or transient services. In any event, by your own definition below:

> Let's say I sell it to you for a million bucks. Did I take your wealth? Nope. I traded a million dollar painting for a million bucks. You are exactly as wealthy as you were before.

Either you have not "become wealthy", as you "traded a million dollar painting for a million bucks" or the effectual value of money exceeds the purchase value of the "million dollar painting". Both cannot be true.

Back to my statement of corporate earnings beyond operational costs being a concentration of wealth. I believe we can agree on the following:

- Any for-profit company has as its purpose the goal of accounts receivable (AR) exceeding accounts payable (AP) over time.

- There are a limited number of recipients regarding profit distribution for any given company.

- Those having no direct or indirect ownership of a given company do not receive profit distributions.

If we agree on the above, then the larger the profits, the larger the distributions. Since the set of people qualifying for profit distributions are less than the set of all people having no investment relation to the company, it follows that said profits are enjoyed by fewer entities than those strictly involved in the AR side of the ledger.

Hence a concentration of wealth into the organization.

Re: Five companies now control over 90% of the restaurant food delivery market

#196
post #92

Earlier quoted context omitted.

The food service industry certainly has some major global players too. Names like Bidfood, Sysco, PFG, etc. In some cases, these same companies cater/supply everything from prison, school, and hospital kitchens through to fancy airline lounges and high-end restaurants!

As somebody that built a TPM product for the industry, I hate prison and school bids. It's so fucking dystopian.

Can you tell us more?

Re: Five companies now control over 90% of the restaurant food delivery market

#197

This is essentially the story of tech companies across nearly every industry where they have come to dominate. This is one reason that I see most tech companies as essentially a net negative for society at large, as the goal is nearly always to control a large monopoly (and this is fully admitted by many tech leaders, e.g. Thiel) which the Internet makes possible. Pre-Internet you would see the same dynamics, but usu…

> This is essentially the story of capitalism

FTFY

> Pre-Internet you would see the same dynamics, but usually on a much smaller regional scale

There's been plenty of national and global monopolies (I mean, that's literally why we had Antitrust laws made in the 1890's) as well as industries with only a couple players in a market.

In fact, if you name any industry, it's probably led by just 3-5 corporations. Mobile service? Verizon, T-Mobile, AT&T. Television news? Disney, Paramount, Comcast, Fox, Warner Bros. Liquor? AB InBev, Diageo, Pernod, Suntory, Bacardi. Wine? E&J Gallo, The Wine Group, Constellation. Beer? Ab InBev, Heineken, Snow Breweries. Cars? Toyota, Volkswagen, Hyundai, GM, Ford, Stellantis. Airlines? Delta, American, United, Southwest, Lufthansa. Oil and gas? Aramco, Exxon, Chevron, PetroChina, Shell. Music? Universal, Sony, Warner. Coke, Pepsi, Keurig.

This is what capitalism does. By definition it grows as large as it possibly can, shutting out competitors.

Re: Five companies now control over 90% of the restaurant food delivery market

#198

This is essentially the story of tech companies across nearly every industry where they have come to dominate. This is one reason that I see most tech companies as essentially a net negative for society at large, as the goal is nearly always to control a large monopoly (and this is fully admitted by many tech leaders, e.g. Thiel) which the Internet makes possible. Pre-Internet you would see the same dynamics, but usu…

There's a George Carlin bit about politicians. The punchline is "the problem isn't the politicians, it's the people." His point is that nothing emerges from a vaccuum. Politicians are people just like everyone else, they're just responding to incentives created by a majority vote. Tech companies are just like any other company, except a lot more people are willing to pay for their goods and services. If Carlin were a…

> My theory is that if you're extremely pessimistic about technology or politics, you probably won't like anything that happens when large groups of humans make collective decisions.

The main issue is that in tech and politics it is a small group of humans making collective decisions for all.

Re: Five companies now control over 90% of the restaurant food delivery market

#199
post #160

Earlier quoted context omitted.

Now imagine you live in one of the other 190 countries of the world who do not or no longer have significant players in the industry because they were crushed by those five foreign companies. It's not competition when the wealth and power is so disproportionately held by the same people in the same places.

Can you name them which countries this impacts? China (basically) only has didi. Not much the USA can say here. Southeast has Grab, and within each country there are at least 2 local competitors (Be, GoJek, Bolt, Line Man, Bluebird, etc). I believe Doordash just bought Deliveroo, making it the only American competitor in SEA. In Europe, the main players are local food panda / Delivery hero and Just Eat. India's winni…

Every country has the talent, software development isn't some esoteric knowledge. But even if you imagine that only people in developed countries are capable of writing software, there is Australia, New Zealand, Canada and Taiwan for starters.

I don't think it makes sense to focus on the US when three of the five companies in the article are from Germany, Netherlands and China. The problem is not America per se, it's the pattern of large and often (but not always) foreign companies extracting wealth from what used to be hyper-local operations.

Re: Five companies now control over 90% of the restaurant food delivery market

#200

This is essentially the story of tech companies across nearly every industry where they have come to dominate. This is one reason that I see most tech companies as essentially a net negative for society at large, as the goal is nearly always to control a large monopoly (and this is fully admitted by many tech leaders, e.g. Thiel) which the Internet makes possible. Pre-Internet you would see the same dynamics, but usu…

There's a George Carlin bit about politicians. The punchline is "the problem isn't the politicians, it's the people." His point is that nothing emerges from a vaccuum. Politicians are people just like everyone else, they're just responding to incentives created by a majority vote. Tech companies are just like any other company, except a lot more people are willing to pay for their goods and services. If Carlin were a…

> Politicians are people just like everyone else, they're just responding to incentives created by a majority vote.

I don't think this is remotely true, and feels like victim blaming. No one is voting for monopolies and exploitation. At most you have people voting for tax cuts and the hopes of improved economies, which are then faced with a bait-and-switch of erosion of legal rights and protection and further anticompetitive practices.

These so-called "food delivery" companies are the worst example possible as they are renowned for the way they exploit employees with blatant violations of basic labor laws. No one voted for that.

> Tech companies are just like any other company, except a lot more people are willing to pay for their goods and services.

No. Their whole business model is based on exploitation to the point some countries had to force them to finally get their riders into actual employment contracts.

> I'm actually far from convinced that tech companies are a net negative for society. Amazon makes billions because everyone wants competitively priced goods delivered to their doorsteps. Google makes billions because they provide free access to a large portion of humanity's information.

You have a far too naive and out of touch view on the problem, much like a few years ago people from colonial powers believed their presence was net positive for natives as that meant they could receive a salary for waiting on them hand and foot. Amazon's example is even more laughable as the company is notorious for exploitative and outright abusive labor practices. I understand you like to receive packages, but I seriously recommend you read something on the topic because their impact on society is far from net positive.

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