if it seems like we are barreling to a future where everyone is essentially a "gig" worker, we should start pushing to decouple healthcare from employment ASAP
#NailedIt, I help pioneer the outsourcing/offshoring industry almost 20 years ago, over that period of time I witnessed the decision making the process of corporate leaders, and with this new remote reality it's painfully obvious this is all aligned to allow for huge increased profits, no more overhead or investors leveraging high-cost properties for rental or ownership, then you have the blockchain crypto e-wallet megatrend, and then this absolute killer article that so eloquently states facts. The future is here, not tomorrow, we straight up plummeted, forget barreling. The only thing that remained was benefits. Anyways I'm ranting, I agree 100% with a push to decouple healthcare from employment asap because in most parts of the world they already have,
I don't get why pizza delivery has been a viable industry for decades, but delivering other food or goods is considered "pie in the sky"? If you can tip a server 20% for delivering your food 20 feet... it follows that you can pay up to 40% to have said server actually drive through traffic, poor weather, darkness, expend gas, wear and tear, and insurance to bring it to your house. It seems like a solvable problem with a market... and whoever wins the market share wins the eventual driverless car bonanza at the end.
Pizza is a unique beast. There are reasons it's one of two food types that have been able to historically support delivery in the US. Average margins are close to double that of other restaurants. And - crucially - it travels so much better than other foods. For many people, pizza is meant to be eaten delivered. Almost all other food suffers for the journey. See the titular story in an old favorite of mine: https://www.amazon.com/Thermodynamics-Pizza-Essays-Science-Everyday/dp/0813517745
That isn't an apples to apples comparison. Serving requires delivering the food multiple times as well as providing needs such as refilling drinks and cleaning tables.
Having done both, delivering is almost a vacation compared to serving.
i have a lot of friends in fine dining; their tips are absolutely not commiserate with the labor they provide in those terms, but of the social value they provide. the attention and flattery of young charismatic people. so whether customers are willing to tip their drivers the cost (including Doordash vig) + profit of their services is a question of whether or not our society will similarly value delivery drivers. i think the affection our culture has for pizza delivery drivers will translate well onto Dashers.
GOD? My 55th Bday is In a week-ish. If you really Wanted to you could give me World Peace!?! Win the Lottery??! Find me ANY vehicle, I still have $800? Am terrified I will trust the wrong person, ughain!
I have two questions. 1. How big is the moat for a business that in an uncapped market takes close to 30% from the operator, while also up-charging the customer with higher priced menu items and service fees? 2. Why aren't they more transparent in saying that as they grow, they will upend hundreds of thousands of single unit operators (a pretty sizable portion of the US economy). When one of the premier operators in the space was talking about delivery expense headwinds three weeks ago, why isn't there more said about independents (which 3P platforms were basically built on). An operator can mitigate the impact of an increased component of sales coming from 3P channels by cost pass throughs, but the reality is, they tighten margins more than the incremental business they bring (it's not even close to the 80% DASH claims in the S-1). As the 3P mix for an operator becomes too large, they eventually go out of business. Most are not financially sophisticated enough to understand what's happening until it's too late, as they trade increased sales for lower profits, building up liabilities along the way. We'll inevitably make the same mistake here that we did with Grubhub, and not realize that the machine is driven by the restaurants.
Great read. Regarding Note 2: the screenshot reads to me that DoorDash will remain an emerging growth company until the last day of this fiscal year (since it crossed the nice and round $1.07 billion threshold in FY20)
Once again, one of the best articles I’ve read about the subject. Brilliantly written and witty, but also sheds a light on the grim future of where that industry is headed. Thoroughly enjoyed reading this and can’t wait for part 3 ;)
if it seems like we are barreling to a future where everyone is essentially a "gig" worker, we should start pushing to decouple healthcare from employment ASAP
#NailedIt, I help pioneer the outsourcing/offshoring industry almost 20 years ago, over that period of time I witnessed the decision making the process of corporate leaders, and with this new remote reality it's painfully obvious this is all aligned to allow for huge increased profits, no more overhead or investors leveraging high-cost properties for rental or ownership, then you have the blockchain crypto e-wallet megatrend, and then this absolute killer article that so eloquently states facts. The future is here, not tomorrow, we straight up plummeted, forget barreling. The only thing that remained was benefits. Anyways I'm ranting, I agree 100% with a push to decouple healthcare from employment asap because in most parts of the world they already have,
I don't get why pizza delivery has been a viable industry for decades, but delivering other food or goods is considered "pie in the sky"? If you can tip a server 20% for delivering your food 20 feet... it follows that you can pay up to 40% to have said server actually drive through traffic, poor weather, darkness, expend gas, wear and tear, and insurance to bring it to your house. It seems like a solvable problem with a market... and whoever wins the market share wins the eventual driverless car bonanza at the end.
Pizza is a unique beast. There are reasons it's one of two food types that have been able to historically support delivery in the US. Average margins are close to double that of other restaurants. And - crucially - it travels so much better than other foods. For many people, pizza is meant to be eaten delivered. Almost all other food suffers for the journey. See the titular story in an old favorite of mine: https://www.amazon.com/Thermodynamics-Pizza-Essays-Science-Everyday/dp/0813517745
That isn't an apples to apples comparison. Serving requires delivering the food multiple times as well as providing needs such as refilling drinks and cleaning tables.
Having done both, delivering is almost a vacation compared to serving.
i have a lot of friends in fine dining; their tips are absolutely not commiserate with the labor they provide in those terms, but of the social value they provide. the attention and flattery of young charismatic people. so whether customers are willing to tip their drivers the cost (including Doordash vig) + profit of their services is a question of whether or not our society will similarly value delivery drivers. i think the affection our culture has for pizza delivery drivers will translate well onto Dashers.
short $DASH (after the lockup expires)
I have been waiting on my pay from door dash for a week now.door dash said thete is a glitch and the certain app will not let me get pain
GOD? My 55th Bday is In a week-ish. If you really Wanted to you could give me World Peace!?! Win the Lottery??! Find me ANY vehicle, I still have $800? Am terrified I will trust the wrong person, ughain!
I have two questions. 1. How big is the moat for a business that in an uncapped market takes close to 30% from the operator, while also up-charging the customer with higher priced menu items and service fees? 2. Why aren't they more transparent in saying that as they grow, they will upend hundreds of thousands of single unit operators (a pretty sizable portion of the US economy). When one of the premier operators in the space was talking about delivery expense headwinds three weeks ago, why isn't there more said about independents (which 3P platforms were basically built on). An operator can mitigate the impact of an increased component of sales coming from 3P channels by cost pass throughs, but the reality is, they tighten margins more than the incremental business they bring (it's not even close to the 80% DASH claims in the S-1). As the 3P mix for an operator becomes too large, they eventually go out of business. Most are not financially sophisticated enough to understand what's happening until it's too late, as they trade increased sales for lower profits, building up liabilities along the way. We'll inevitably make the same mistake here that we did with Grubhub, and not realize that the machine is driven by the restaurants.
#NailedIt2
Thanks for writing such thought provoking content. What are the odds we can get Congressional agreement to update SOX :-\
Great read. Regarding Note 2: the screenshot reads to me that DoorDash will remain an emerging growth company until the last day of this fiscal year (since it crossed the nice and round $1.07 billion threshold in FY20)
Once again, one of the best articles I’ve read about the subject. Brilliantly written and witty, but also sheds a light on the grim future of where that industry is headed. Thoroughly enjoyed reading this and can’t wait for part 3 ;)