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
What changed was that these models manage to skip most of the expense of running a delivery business by… not having employees or assets to maintain. DoorDash, Grubhub and all these other Uber-model companies are delivery services that dont own any inventory, dont have to train or even employ any drivers nor own and upkeep any vehicles, don’t need a physical place to put all it and they dont need to insure it because they dont own any of it, unlike a local courier or taxi service.
Instead they rely on contract workers, directly connecting people driving their personally owned and maintained cars to customers, just skimming a fee off the top for providing the software platform that does the connecting.
Thats why its economically viable, because your nation-wide delivery service now only has the upkeep of a single office of software developers and the payment given to the contractors doing the deliveries is lower than an actually employed delivery or taxi driver would get.
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