> For food delivery (at least takeout) and ride share, the app actually provides a real value
The problem with a food delivery network is that it should be a dumb network, not a big profit center. It should be like an ISP, with the food being the high value packets being delivered to you.
If you look at pre-UberEats times, each restaurant employed a couple of delivery drivers on scooters. Some might have shared those if the restaurants were on the same street, but that's about it.
During low times these drivers would laze around doing nothing, effectively wasting productivity, whereas during peak times, the restaurant didn't have enough drivers.
Having one delivery driver network for an entire city should have made things more efficient and cheaper. But because for example in Europe, JustEat-TakeAway and UberEats have inserted themselves as the middleman and crushed out all competition. Delivery has gotten more expensive and inconvenient because of it.
These days delivery costs €3-5 and there is a €15 delivery minimum. Before, no delivery charge and there was no official minimum. One time one of my friends order a 6-pack of cola, although I doubt they would have delivered that to the edge of the city.
Worst of it is, restaurants are not allowed to charge lower prices themselves than they offer on the app. On top of that, JustEat-TakeAway will make a branded store site on restaurantname.localdeliverycompany.com, of which they get a cut versus if you used the restaurant's own site.
If delivery is more expensive, more inconvenient and often slower now than before 2015, what 'real value' was added?
In the US, delivery was pretty spotty in the pre-app days (pizza places tended to have it almost always, other restaurants were case-by-case). The idea of more community organized joint delivery services is really interesting, it just didn’t exist anywhere I lived in the pre-app-days (maybe it was a thing in major cities, that wouldn’t surprise me).
I wonder why the apps out-competed it. Delivery apps are often not even supported officially by the restaurants, right? It’s just sort of like—if somebody comes in for the pickup and gives the right name, they don’t typically care and will just give the delivery guy your order. So it isn’t like some vendor lock-in thing, seems just like network effect from the users or something…
Sure because you had to distribute sales and place product. You shifted marketing off to the retail location and distributor and you still controlled the price / mark up.
Pizza is already sold, the last mile delivery should have zero impact on its retail. Right now the last mile delivery has a near monopoly on retail of a restaurant. Pretending that toast/grubhub/seamless somehow benefit the customer is pure rubbish.
>> If you look at pre-UberEats times, each restaurant employed a couple of delivery drivers on scooters.
> This was not my experience. Hardly any restaurants had delivery other than pizza.
Your parent commenter appears to be European. Europe enjoys better city living in many ways than the United States does because the US is relatively underpopulated. (On the other hand, urban Americans have much larger homes.)
I live in Netherland, and here UberEats was a latecomer to what Thuisbezorgd had been doing for ages, but other than that it rings true. Before Thuisbezorgd, it was mostly just pizza that got delivered. Maybe also other Italian food, and maybe a little bit of Asian. Since Thuisbezorgd we can get any cuisine you can imagine delivered to your door.
But the standard Dutch takeaway food has always been Chinese (Dutch Chinese-Indonesian, actually), and I think even now that might still be more takeaway than delivery.
> Before Thuisbezorgd, it was mostly just pizza that got delivered. Maybe also other Italian food, and maybe a little bit of Asian.
> But the standard Dutch takeaway food has always been Chinese (Dutch Chinese-Indonesian, actually),
Well, those and things like spareribs, burgers, kapsalon, etc., which makes it a rather broad spectrum of takeaways that already had delivery.
In case you didn't know, Takeaway = Thuisbezorgd (or rather, the other way around). And in the 2010s, Thuisbezorgd and Just Eat had a pretty active fight for marketshare, until they decided the most profitable course of action was for Just Eat to operate in the countries where it held a majority marketshare, and Takeaway to do likewise, creating regional monopolies. Later on they merged, which any sane regulatory agency would have blocked.
What is interesting is that UberEats hasn't tried to compete on price at all. They charge similar, semi-extortionate prices. They just offer delivery from more and more upscale places.
The problem with a food delivery network is that it should be a dumb network, not a big profit center. It should be like an ISP, with the food being the high value packets being delivered to you.
If you look at pre-UberEats times, each restaurant employed a couple of delivery drivers on scooters. Some might have shared those if the restaurants were on the same street, but that's about it.
During low times these drivers would laze around doing nothing, effectively wasting productivity, whereas during peak times, the restaurant didn't have enough drivers.
Having one delivery driver network for an entire city should have made things more efficient and cheaper. But because for example in Europe, JustEat-TakeAway and UberEats have inserted themselves as the middleman and crushed out all competition. Delivery has gotten more expensive and inconvenient because of it.
These days delivery costs €3-5 and there is a €15 delivery minimum. Before, no delivery charge and there was no official minimum. One time one of my friends order a 6-pack of cola, although I doubt they would have delivered that to the edge of the city.
Worst of it is, restaurants are not allowed to charge lower prices themselves than they offer on the app. On top of that, JustEat-TakeAway will make a branded store site on restaurantname.localdeliverycompany.com, of which they get a cut versus if you used the restaurant's own site.
If delivery is more expensive, more inconvenient and often slower now than before 2015, what 'real value' was added?