Earlier quoted context omitted.
They are taking a loss on every order, but they are hoping to make up for it with volume.
You can't make up for it in volume if each order makes a loss and you get no benefit from having more orders (they still pay each time the full price to the restaurant!)
Doordash and Pizza Arbitrage
301–310 of 534 posts
Re: Doordash and Pizza Arbitrage
#302Earlier quoted context omitted.
For vast majority of things amazon sells, a system checking if the weight is within a pound or 25%, whichever is greater, would almost never have a false positive.
So a pound is 453g. I checked my order history and my last orders are around: - 350g - 600g - 200g - 500g - 5kg - 120g a box with empty packing would fit within a pound for most of these. I don't intend to nitpick your back of the enveloppe calculation, just that it's not as simple as it seems. I don't know if I am the typical amazon shopper, but on my 35 orders in the last 6 months the above pattern is repeating wit…
Re: Doordash and Pizza Arbitrage
#303Earlier quoted context omitted.
It doesn't fully explain why they priced a $24 pizza at $16. I wouldn't be surprised if they're subsidizing purchases, but just skipping fees doesn't explain that.
Web-scraping is hard man, especially with mom-and-pop restaurant websites that are often exported straight from microsoft word or some ancient "platform" that got reconfigured 20 times over. As article pointed out it picked up full-toppings pizza as plain cheese.
Re: Doordash and Pizza Arbitrage
#304Earlier quoted context omitted.
So a pound is 453g. I checked my order history and my last orders are around: - 350g - 600g - 200g - 500g - 5kg - 120g a box with empty packing would fit within a pound for most of these. I don't intend to nitpick your back of the enveloppe calculation, just that it's not as simple as it seems. I don't know if I am the typical amazon shopper, but on my 35 orders in the last 6 months the above pattern is repeating wit…
I think an important part of the equation would be knowing the weight of the boxes you're using as well.
It can be done, just not sure the parties involved are willing to commit to that level of accuracy.
Re: Doordash and Pizza Arbitrage
#305Re: Doordash and Pizza Arbitrage
#306Earlier quoted context omitted.
Or, it is the age of social distancing. Just order it to a random address and steal it off the porch/lobby area.
Majority of the liquor ordered using a phished account goes here – so sketchy: https://www.google.com/maps/place/101+bowery+st/@40.7176021,...
Re: Doordash and Pizza Arbitrage
#307Earlier quoted context omitted.
In the end the customer needs some single easy interface where to order food from. It is kind of difficult to see how this could work in a way where restaurants would dictate how customers prefer to order.
Why doesn't Google build this as an extension of Google Maps? Charge restaurants no fee for the platform, if they provide their own drivers. Charge restaurants money through Google Ads to promote their restaurants for higher results. In a few years, get Waymo's driverless cars on the game.
Re: Doordash and Pizza Arbitrage
#308Probably because Grubhub and Doordash are approaching this with the "holistic mindset" of a "visionary" mind like the WeWorks founders. Hence we get behaviour like this which is probably illegal in multiple ways.
Provide your work at a fixed price per order. Or you might take a (transparent, explicit, of those who actually signed up for the service) commission, fair enough.
Providing a good service is hard on itself, but it won't distract you from all the other crap and won't alienate the people that actually make your service work.
Re: Doordash and Pizza Arbitrage
#309I said this in another post about Grubhub but similarly to this article I really don't get it. Those apps are all 25%+ expensive than ordering take out directly with the restaurant, they screw the restaurants and all those delivery companies lose millions. Did everyone really become THAT lazy that driving 10 minutes to get your meal is that much trouble?
Meal delivery doesn't just exist because people are lazy. It has been around a long time via the much more inefficient process of calling a restaurant that you already knew about, having someone spend time with you on the phone getting your order and credit card # and then dispatching a delivery person they employed directly to deliver the order to you.
Re: Doordash and Pizza Arbitrage
#310Just some back-of-the-napkin math if you wanted to do this "right". Let's say you hire drivers as employees and pay them $15/hr plus tips and reimburse them for mileage. You charge a $4.99 delivery fee. Drivers work set shifts and are paid hourly whether they are making deliveries or not. That means each driver needs to be making at least 4 deliveries an hour or you're losing money. That's not even really counting fo…
They kind of go into this in the article -- that since Domino's has made delivery work for decades now, it must be possible to do it sustainably; and that although most of the author's restaurant friends considered it "not worth the effort", individuals had managed to make the economics work for their very specific circumstances.
BUT -- that the fact that it can be made to work in specific circumstances sort of undermines the whole idea of DoorDash, which is a generic "food delivery wrapper" around any restaurant. DoorDash by definition can't do the kind of integration that Domino's does.