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

These types of food delivery companies are not new, they’ve been around for a very long time. Yes in 1995 in many cities had local companies doing restaurant delivery. They were pretty common.

Nothing is special with these companies. They are doing the exact same thing as the older ones. Many older ones even had online ordering setup in the mid-2000s that isn’t much different than it is now… in fact it looks pretty much identical.. hell to a degree, these new companies UI and ordering systems are actually worse.

Restaurant delivery is s actually a pretty poor business to be in as well. Margins tend to be very low, especially for home delivery, though large catering orders for businesses have always been the better, much more profitable option, though delivery for that isn’t as big of a business as you may think, especially outside of major cities and business hubs with many corporate offices. You need significant scale to even make it a good business to be in over being in another business when you’re past the “small business” phase that most delivery companies have existed in for the past 20 years.

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