Re:DoorDash raises minimum pay to $29.93 per hour in NYC
by Dylan16807 on Monday December 04, 2023 @09:56PM
(#38526534)
"could indeed make"? What's not sustainable about that level of profit? And aren't they still spending a lot on expansion?
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Re:DoorDash raises minimum pay to $29.93 per hour in NYC
by kiba on Monday December 04, 2023 @10:28PM
(#38526761)
It implies that their margin is really low. We're talking about revenues in hundred of millions and they're only able to make single digit millions.
Next quarter, their margin might entirely be wiped out by a slight downturn in business. If they could increase their margin and make profit consistently, then I'll change my mind.
Re:DoorDash raises minimum pay to $29.93 per hour in NYC
by Dylan16807 on Monday December 04, 2023 @11:11PM
(#38527009)
Is a particularly big percentage of their costs fixed? Because that affects the math a lot. If we consider a generic slightly-profitable company facing a 25% revenue drop, there's a huge gulf between a world where costs drop 10% and a world where costs drop 22%.