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DoorDash Buying Caviar from Square for $410M

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Re: DoorDash Buying Caviar from Square for $410M

#71
post #54

Earlier quoted context omitted.

The density of HK is not comparable to basically anywhere in the US, except maybe just Manhattan. The labour sources are also a lot cheaper. There's room to improve in the US, like making kitchens without the attached restaurant more prevalent, but as long as you have to get in a car to deliver the food, there's going to be the same problems the rideshare industry faces.

New types of restaurants are popping up: 1) Ghost kitchens that only serve via delivery apps. You can save on rent by setting it up in an area with no foot-traffic. You can also get economies of scale. 2) Restaurants with dedicated entrances for delivery drivers. Baar Baar in NYC has a separate place where delivery workers can wait. In other restaurants, they have to wait in the limited dining area. One hopes that th…

> 1) Ghost kitchens that only serve via delivery apps. You can save on rent by setting it up in an area with no foot-traffic. You can also get economies of scale.

You can't. This is the kind of a mistake that all first time entrepreneurs make. Delivery costs too much money. Logistics of getting your labor force to your kitchen is a nightmare.

> 2) Restaurants with dedicated entrances for delivery drivers. Baar Baar in NYC has a separate place where delivery workers can wait. In other restaurants, they have to wait in the limited dining area. One hopes that the workers still get to use restrooms & get some water, etc.

This was tried in NYC during first dot com. Remember purple shirts? They had a competitor with green shirts. That's the unproductive spaces. Rent hikes wiped those out.

Edit: Blind downvotes are laughable. Go walk into your local pizza place and talk to the owners. They will tell you why they are slowly dropping off all the apps. They are giving equivalent of a 20-30% discount in fees for the area they already deliver in.

Ghost kitchens are mostly scams. The ones that aren't are ran out of commissary commercial kitchens that cost an arm and a leg. The "ghost kitchens" are mostly not really legal, sometimes ran out of a house, marketing same stuff under different names. Most of the restaurant overhead for small places does not come from the rent of the floor space. It comes from the rent of the kitchen and compliance with the health codes. And, unlike say taxi commissions, health departments take no crap, which is why the ghost restaurants disappear rather quickly.

It is the "no one did it before" idea of people who have never ran restaurants. It always flops. If it did not, Union Sq Hospitality would have been doing it for years.

Re: DoorDash Buying Caviar from Square for $410M

#72

I’m so confused by DoorDash’s sudden rise. I think I may have used it once. What is separating DoorDash from UberEats, Postmates, Grubhub etc?

Honestly, more than anything it's just user preference.

There are some restaurants that are exclusive on certain platforms (UberEats for example is exclusive with McDonalds), so if you want that, there's only one game in town, but most people I know who use these platforms regularly (myself included) aren't using them for a specific restaurant. It's more like, "I want sushi! I wonder what is available on my platform of choice?"

Beyond they all have slightly different pricing models, but at the end of the day they all cost about the same.

Re: DoorDash Buying Caviar from Square for $410M

#73

I’m so confused by DoorDash’s sudden rise. I think I may have used it once. What is separating DoorDash from UberEats, Postmates, Grubhub etc?

Honestly, more than anything it's just user preference. There are some restaurants that are exclusive on certain platforms (UberEats for example is exclusive with McDonalds), so if you want that, there's only one game in town, but most people I know who use these platforms regularly (myself included) aren't using them for a specific restaurant. It's more like, "I want sushi! I wonder what is available on my platform…

The exclusive deal between UberEats and McDonalds is no more https://www.theverge.com/2019/7/16/20696711/mcdonalds-doorda...

Re: DoorDash Buying Caviar from Square for $410M

#74

I’m so confused by DoorDash’s sudden rise. I think I may have used it once. What is separating DoorDash from UberEats, Postmates, Grubhub etc?

I use doordash 2-3 times a week. It's convenient and cheaper than Uber eats with dashpass. Just remember that if your too amount is less than 6$ it doesn't go to the drivers. It's better to too them with cash

They just changed that in response to the backlash of the article from the NYT.

Re: DoorDash Buying Caviar from Square for $410M

#75

Earlier quoted context omitted.

I think you meant to say that Travis is investing millions of his fund's cash, NOT his personal money. Is that correct?

His fund is entirely funded from personal cash, so it's broadly the same thing.

Ah, I didn't know that. I thought there were other LPs in the fund.

Re: DoorDash Buying Caviar from Square for $410M

#76

I’m so confused by DoorDash’s sudden rise. I think I may have used it once. What is separating DoorDash from UberEats, Postmates, Grubhub etc?

I don't get it either. They're considerably more expensive than Postmates, and have consistently acted shady in my dealings with them.

Re: DoorDash Buying Caviar from Square for $410M

#77

Earlier quoted context omitted.

Most/all Chinese cities are denser with cheaper labor than any US city so the point stands.

Are you sure about the first point? https://en.wikipedia.org/wiki/List_of_United_States_cities_b... Neither Shanghai or Beijing would make top 20 on this list

Did you even click on one of the "cities" on that page? The size of Guttenberg is 0.196 sq. miles. It's a tiny part of a city in a small state. You're comparing apples to oranges. A more reasonable comparison would be all of New York City or all of Los Angeles to Shanghai which would be more interesting.

Re: DoorDash Buying Caviar from Square for $410M

#79

Question from someone that's not familiar with law, or I guess specifically antitrust (anti-monopoly?) law. How are these acquisitions not in violation of these laws. Especially from the Big Tech Cos that slurp up literally any small competitor. From the article: "DoorDash's acquisition of Caviar creates a highly differentiated company with a unique brand and wide-ranging selection." How is this not a play at elimina…

I'd recommend reading up on the Microsoft antitrust case. That's where most of us learned about antitrust law.

Re: DoorDash Buying Caviar from Square for $410M

#80

Earlier quoted context omitted.

I use doordash 2-3 times a week. It's convenient and cheaper than Uber eats with dashpass. Just remember that if your too amount is less than 6$ it doesn't go to the drivers. It's better to too them with cash

They just changed that in response to the backlash of the article from the NYT.

They just announced they plan on changing the policy. It has not changed yet.

Also they announced they were "investigating the issue" for 4 months before, and then didn't make a change. So let's not congratulate them until its been confirmed to be actually working as drivers and customers expect.

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