Yet these apps charge something like $20-50 for delivery?
Dominoes has a small radius around it often enabling multiple drop offs before returning. Dominoes drivers always return to the restaurant after a delivery, and the restaurant is optimized for that handoff generally with a dedicated parking space etc.
Apps do longer deliveries from more restaurants who don’t prioritize their time etc. Apps also need to be inherently profitable thus some of the charge is paying for the app itself. Really Apps are like someone took an extremely efficient system and thought how can we make this worse in every possible way.
Wasn't there some guy who made a local version of some delivery service or something and was profitable on day one? I remember there was a hn link on it that came up a couple of times
Delivery apps are ultimately pyramid schemes that were initially funded by zero-interest investors who eventually cashed out to greater fools at a profit. Now that the investment funding has dried up, they need to get money from somewhere and that is by adding a ridiculous overhead
How come they get the big cut? While they have most scalable costs. Shouldn't they be there only taking tens of cents per order? Maybe they should outsource the work more to cheaper people.
The owner of the Domino’s Pizza wants to make a profit, so he pays his drivers to get the pizza there fast. One company.
When it comes to food delivered by an app, but the restaurant and the company providing the app both want to make a profit.
(Yes, the franchise fee paid Domino’s Corporate technically involves profit for another company but that ruins my argument so I’m conveniently leaving that out. But in all seriousness, there seems to be an economies of scale there that keeps the franchise fee low enough as to be a manageable cost.)
Doordash et al. normally have a driver picking up one order and delivering it. I've seen a driver picking up two orders; but, it's rare.
My local Pizza Hut has since outsourced their delivery to DoorDash. Now, even though I'm only two miles away from the store, it takes 30+ minutes for the DoorDash driver to bring my order once the store says its "out for delivery". I no longer order pizza delivery.