I would normally pay $100 for this food with their typical delivery service. I am getting a large discount on the regular takeout price through DoorDash.
If you discount something but you're still making money, and your discount gets more people to buy the product, then you can make more money than you would have without the discount.
No, in reality VCs are eating the loss (real loss, not less profit) in hopes of higher returns later when everybody needs to order via this food-delivery service due to the rest being bankrupt.
If prices are going that high people will stop using it.
Also the employees will eventually want more benefits higher pay etc as the company grows.
Companies whose efficiency relies on humans can not be that profitable no matter how much money you throw at them. Computers are more efficient than people. Simply using computers to coordinate people isn’t as efficient as no people.
You see hyper growth and large profits specifically from tech companies whose product could run for awhile if every human left.
Food delivery would exist for 0 time if every human left.
It's not so easy. Delivery services mainly bill the restaurants. They take a 25-30% commission which the customer doesn't know about. Then they do aggressive marketing on TV, on the streets, and online to make their services known to customers. They brag about the convenience of ordering through an app or via website.
Meanwhile they employ an army of sales reps, hyping their services to restaurants. They downplay the commission rates and emphasize that the restaurant will be let behind because they are not represented online while everybody else is.
Luckily restaurants started to notice that being online doesn't really matter for a local business. Put your menu up and a phone number next to it.
