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

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

#21

Post by paul »

gmisra wrote: 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've talked to the drivers for a lot of different services, and they seem to enjoy the work. In particular, these on-demand services offer a lot more flexibility than traditional jobs where you are expected to show up every day and sit in a chair for 8 hours.

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

#23

Post by khc »

downandout wrote: post #19
paul wrote: 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…

didn't all the Fedex drivers start out as contractors, until a court case ruled that they are actually employees? Time will tell if this will happen to DoorDash and Uber.

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

#24

Post by jaydz »

paul wrote: post #21
gmisra wrote: 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've talked to the drivers for a lot of different services, and they seem to enjoy the work. In particular, these on-demand services offer a lot more flexibility than traditional jobs where you are expected to show up every day and sit in a chair for 8 hours.

Traditional jobs guarantee a wage for those 8 hours. Most on-demand services guarantee nothing. I'm glad DoorDash at least guarantees an hourly wage in some markets.

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

#25

Post by paul »

jaydz wrote: post #24
paul wrote: post #21

Earlier quoted context omitted.

I've talked to the drivers for a lot of different services, and they seem to enjoy the work. In particular, these on-demand services offer a lot more flexibility than traditional jobs where you are expected to show up every day and sit in a chair for 8 hours.

Traditional jobs guarantee a wage for those 8 hours. Most on-demand services guarantee nothing. I'm glad DoorDash at least guarantees an hourly wage in some markets.

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).

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

#26

Post by andy318 »

7Figures2Commas wrote: post #3

It's interesting to see investors continue to pour lots of money into startups that classify their workers as independent contractors even though the risks of doing so are clear, immediate and growing[1][2]. The lines between employee and independent contractor are somewhat blurred in some cases, but given how important the cost shifting is to the economic viability of many of these companies, a lot of these investme…

Yup. The new bus service in SF - http://rideleap.com - classifies the bus drivers as independents. From their ToS (excuse the all caps) https://app.leaptransit.com/webterms - LEAP DOES NOT PROVIDE TRANSPORTATION SERVICES, AND LEAP IS NOT A TRANSPORTATION CARRIER. IT IS UP TO THE DRIVER OR VEHICLE OPERATOR TO OFFER TRANSPORTATION SERVICES WHICH MAY BE ARRANGED THROUGH USE OF THE SERVICES

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

#27

Post by vgeek »

gmisra wrote: 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…

It isn't new.

Look up how the Leapforce/Lions Bridge raters who indirectly work for Google have inconsistent/unguaranteed work as independent contractors. When those programs started, the pay was near $20, as time has gone on, the output demands have increased and the hourly pay has decreased to ~$13 the last I heard.

Why not squeeze the IC's? They aren't represented and typically have no recourse besides quitting, to be replaced by another IC at possibly even lower pay. It just seems like a race to the bottom, with the primary victim being the most vulnerable parties to begin with.

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

#28

Post by hayksaakian »

gmisra wrote: 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…

On the bright side, you can "work for" dozens of on-demand services at once, and take work as you like.

You reduce your opportunity costs by multiplying your availability (do Lyft and Uber for example).

You can't work 40 hours a week for 5 different companies, but you can be available to 5 different "sharing economy" companies at once.

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

#29

Post by djf1 »

gmisra wrote: 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…

To be clear, there's another innovation here that you're not mentioning. The number of restaurants from which I can get food delivered to my doorstep is greatly increasing.

If we're going to critique the value of a service, we might as well include the benefit to consumers.

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

#30

Post by 7Figures2Commas »

andy318 wrote: post #26
7Figures2Commas wrote: post #3

It's interesting to see investors continue to pour lots of money into startups that classify their workers as independent contractors even though the risks of doing so are clear, immediate and growing[1][2]. The lines between employee and independent contractor are somewhat blurred in some cases, but given how important the cost shifting is to the economic viability of many of these companies, a lot of these investme…

Yup. The new bus service in SF - http://rideleap.com - classifies the bus drivers as independents. From their ToS (excuse the all caps) https://app.leaptransit.com/webterms - LEAP DOES NOT PROVIDE TRANSPORTATION SERVICES, AND LEAP IS NOT A TRANSPORTATION CARRIER. IT IS UP TO THE DRIVER OR VEHICLE OPERATOR TO OFFER TRANSPORTATION SERVICES WHICH MAY BE ARRANGED THROUGH USE OF THE SERVICES

Hilarious. That's like United saying, "We aren't an airline. It's up to the pilot to offer a flight which may be arranged through united.com."
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