Was asking the same question myself. I am also on the same boat -- flipping through the apps to compare the prices. I thought maybe we are the minorities and the general public just downloads a single food delivery app. The same goes for ride hailing apps, too. An aggregator app that combines every delivery app may disrupt the system. Or maybe they will go for restaurant exclusivity instead of user loyalty. I don't know.
Re:DoorDash from Application to IPO
by searchableguy on Wednesday December 09, 2020 @07:22PM
(#25367665)
> As an investor, how would you differentiate these food delivery start-ups?
https://www.doordash.com/drive/portal/discover
Probably set it up as a stripe like DAAS for businesses.
I'm curious to see what the state of aggregated food delivery will be in, say, 2024. Not too far in the future, but long enough for losers to start giving up.
My current understanding is that DoorDash-like start-ups are consistently in the red. The upfront expenditure on engineering and marketing for a 3-sided marketplace is huge. The business model would be to take a bit from each transaction and achieve profitability on volume. Thus, a winner-takes-all (or few-takes-all) situation seems inevitable.
It seems there's many players right now in the space, and the only differentiator I see thus far is restaurant selection and price.
I may be in my own bubble, but I have no loyalty to DoorDash, UberEats, GrubHub, etc. I usually flip through each app to compare prices and pick the lowest one.
As an investor, how would you differentiate these food delivery start-ups?