Why are delivery companies like DoorDash and GrubHub suddenly economically viable?

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People have had cars, addresses, and telephones for a century. Pizza and Chinese food have been showing up at people’s doorsteps for decades. Surely it seems like everything one would need to build a food delivery contracting company existed before the internet. What was missing that prevented me from ordering tacos by phone in 1995?

In: Economics

13 Answers

Anonymous 0 Comments

In 1995 you would have to have a huge staff to answer the phones as well as the infrastructure for all those phone lines.

Today, the presence of smart phones with internet access allows the complete ordering, payment, information distribution, and driving directions processes to be automated. The only “touch” labor involved is the driver. This dramatically reduces overhead and labor costs.

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