Congratulations to DoorDash! Their IPO is quite an achievement.
I'm curious to see what the state of aggregated food delivery will be in, say, 2024. Not too far in the future, but long enough for losers to start giving up.
My current understanding is that DoorDash-like start-ups are consistently in the red. The upfront expenditure on engineering and marketing for a 3-sided marketplace is huge. The business model would be to take a bit from each transaction and achieve profitability on volume. Thus, a winner-takes-all (or few-takes-all) situation seems inevitable.
It seems there's many players right now in the space, and the only differentiator I see thus far is restaurant selection and price.
I may be in my own bubble, but I have no loyalty to DoorDash, UberEats, GrubHub, etc. I usually flip through each app to compare prices and pick the lowest one.
As an investor, how would you differentiate these food delivery start-ups?
I'm curious to see what the state of aggregated food delivery will be in, say, 2024. Not too far in the future, but long enough for losers to start giving up.
My current understanding is that DoorDash-like start-ups are consistently in the red. The upfront expenditure on engineering and marketing for a 3-sided marketplace is huge. The business model would be to take a bit from each transaction and achieve profitability on volume. Thus, a winner-takes-all (or few-takes-all) situation seems inevitable.
It seems there's many players right now in the space, and the only differentiator I see thus far is restaurant selection and price.
I may be in my own bubble, but I have no loyalty to DoorDash, UberEats, GrubHub, etc. I usually flip through each app to compare prices and pick the lowest one.
As an investor, how would you differentiate these food delivery start-ups?