Doordash and Pizza Arbitrage

For resilience in the future, restaurants are going to need to master takeout and delivery. The problem is those delivery startups like DoorDash, Grubhub, and Skip the Dishes take up to 25% of a restaurant's revenue. Restaurant profit margins are already razor-thin (3%-5% is normal). It's predatory for venture-backed delivery companies to be taking... See more

The most important shift in restaurants in the past decade has been the rise of online ordering and delivery. UberEats, Postmates, Doordash, and a handful of other apps have been knife-fighting (in extremely uneconomical ways) for the privilege of becoming food delivery aggregators. Own enough customer demand, the thinking goes, and not only will r... See more

Grubhub was early to the food delivery game and unlike its VC-backed competitors, it was consistently profitable. That its business model worked should have given Grubhub a leg up, but what it actually meant was that the company was playing a different game from competitors bloated with venture capital and untethered to things like profit and unit ... See more

The takeout and delivery business needs to be rethought. I see two new popular paths emerging. They represent diametrically opposing views of this space.