
Man makes money buying his own pizza on DoorDash app - iamflimflam1
https://www.bbc.co.uk/news/technology-52724062
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ken
BBC summary of Monday's
[https://news.ycombinator.com/item?id=23216852](https://news.ycombinator.com/item?id=23216852)

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tracer4201
From reading the blog post linked from the article, DoorDash doesn’t actually
make money. Someone who understands finance better, what is the longer term
play here? Is it to optimize to grow and then raise prices in the future?

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lm28469
Same as Uber &co. Kill competitors by selling at loss and achieve monopoly.
Which will never work because there is almost no barrier to entry in these
businesses.

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mewpmewp2
How is there no barrier of entry?

Very high marketing, legal, etc costs and highly optimized/intelligent
routing, scheduling system within an app.

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softbankhater
Softbank is a money-wasting machine. I will never give them even a penny. They
are the worst investors on the entire planet.

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noad
I am not sure if they are the "worst investors" or just "the ones left holding
the bag at the end".

Lots of super smart VC people in the valley just exited a little bit sooner.
That's quite literally the only difference. This whole investment ecosystem
was built around this, gotta exit ASAP

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swivelmaster
The difference is that VCs exited when they realized that the business model
was probably never going to work, while Softbank happily took their place
despite likely knowing that the other investors were getting out.

It's like walking into a house party while everyone is running out the back
yelling "cops are coming!" and thinking, "this is gonna be a great party once
all these screaming people leave!"

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noad
No, the VCs exit when their mountains of data say to exit. It has nothing to
do with the business, just valuations.

If you get in at or before Series A you are going to make money nearly every
time. If you get in after that you are going to lose money nearly every time.
This has nothing to do with the industry or the business model or smart people
making savvy choices.

