A pizzeria owner made money buying his own $24 pizzas from DoorDash for $16

https://www.theverge.com/2020/5/18/21262316/doordash-pizza-profits-venture-capital-the-margins-ranjan-roy

by kkotak • 6 years ago

74 10 6 years ago

hanging• 6 years ago

  GrubHub... lost $33.4 million over the last 3 months. (In fairness: COVID-19.)

I don't understand the qualifier. Hasn't Covid-19 been a boon to delivery services? If they can't profit during these artificially beneficial market conditions (boosted demand and endless supply of minions to do delivery), how can they ever profit?

weare138• 6 years ago

I'm guessing it's because of so many of the restaurants being closed in urban areas during the lockdown and people having less money to spend on things like takeout.

boublepop• 6 years ago

They are engineered to take a loss. If market conditions improve they ramp up costs. It’s not a game to maximize profits yet, it’s a game of trying to maximize vale extracted from losses.

hazbot• 6 years ago

"We're losing money on every sale!"

"Don't worry, we'll make up for it in volume."

greenyoda• 6 years ago

Extensive discussion of original source: https://news.ycombinator.com/item?id=23216852

someluccc• 6 years ago

I live in Colombia. A couple years ago right before a new funding round (I guess looking to pump the revenue numbers), Rappi offered 50% cash back on unlimited purchases, up to $1000 per purchase. Bought a few iPhones and netted like 10k reselling them on FB, lot’s of people did too. How’s that for CAC.

exabrial• 6 years ago

Yelp is another one of the trash companies that's acquired their customer base through bullying small business owners. They're welcome to piss off as well.

desertrider12• 6 years ago

Ha, the show Silicon Valley predicted this exactly.

https://www.youtube.com/watch?v=Txl90NEl92U

A pizzeria owner made money buying his own $24 pizzas from DoorDash for $16

Related Stories