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 new. They have been economically viable for a long time. Food delivery companies have existed in cities all the way back to the 1980s if not earlier. But instead of the restaurant contracting with them for delivery people they can instead be hired by the customer directly via the ease of technology such as phone apps and websites.

But margins on delivery companies are very very tight. They are only viable in places where population density can support them.

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