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

They are not really viable economically. Most run on the same model: fake it till you make it. They basically compete using other’s people’s money and try to gain a significant market share. Once they do this they cash out during the IPO. Basically a money losing company suddenly worth billions even though it might never make a profit.

Recent Uber profits came out, lost more money than ever and they admitted they have no idea when they will make profit. IPO price was $45 now its $ 3x.

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