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Living Room / Doordash and Pizza Arbitrage - Unloading capital cannons on customer acquisition
« on: May 19, 2020, 03:03 PM »
A pizza shop discovers that a 3rd party delivery service has hijacked their google listing to offer deliveries for their pizza, and reselling their pizza at a loss... How is this a business model?
Another mystery of capitalism.
Another mystery of capitalism.
But he brought up another problem - the prices were off. He was frustrated that customers were seeing incorrectly low prices. A pizza that he charged $24 for was listed as $16 by Doordash...
You have insanely large pools of capital creating an incredibly inefficient money-losing business model. It's used to subsidize an untenable customer expectation. You leverage a broken workforce to minimize your genuine labor expenses. The companies unload their capital cannons on customer acquisition, while this week’s Uber-Grubhub news reminds us, the only viable endgame is a promise of monopoly concentration and increased prices. But is that even viable?