They get 5% to 30% from each order paid by the restaurant, then the customer has to also pay 5% to 20% service fee, they only have to pay for the cost of their servers and app development, and like $2.50 to each driver per order.
Doordash, Uber, and Grubhub are not food delivery companies, they are technology companies offering a platform that connects drivers and customers, basically a glorified facebook marketplace with automatic algorithm matching.
Plus legal fees, salaries of everyone at the office (which is a bit more than app development costs when you think of all the middle and upper managers involved), leasing office space itself (and other related costs), assuming they haven’t gone full remote. Marketing, lobbying (at national, regional, and local levels, since individual cities decide whether or not to allow them at this point), PR, finances, paying the team that convinces the investors to throw more money at it instead of pulling the plug (though I bet sunk cost fallacy does a lot of legwork for them).
Are any of them actually profitable or are they still in the “drive established competitors out of business with unsustainably low prices” phase?
They get 5% to 30% from each order paid by the restaurant, then the customer has to also pay 5% to 20% service fee, they only have to pay for the cost of their servers and app development, and like $2.50 to each driver per order.
Doordash, Uber, and Grubhub are not food delivery companies, they are technology companies offering a platform that connects drivers and customers, basically a glorified facebook marketplace with automatic algorithm matching.
Plus legal fees, salaries of everyone at the office (which is a bit more than app development costs when you think of all the middle and upper managers involved), leasing office space itself (and other related costs), assuming they haven’t gone full remote. Marketing, lobbying (at national, regional, and local levels, since individual cities decide whether or not to allow them at this point), PR, finances, paying the team that convinces the investors to throw more money at it instead of pulling the plug (though I bet sunk cost fallacy does a lot of legwork for them).