Like the only success I can see is AirBnB and that's because houses are expensive and in short supply.
In the UK, outside of corporate chains, it was largely a cash in hand operation for both the restaurants and drivers.
Drivers would typically be paid a small sum for showing up on the night and then keep the delivery charge and any tips. The cost to the restaurant was pretty much negligible.
The middle-men, in addition to their own cut, have likely lead to a larger tax burden on many of the drivers and restaurants.
Under that model, wouldn't drivers only want to work for the busiest restaurants?
With delivery apps, a restaurant can have just a few orders per night and still be open for delivery.
I would bet that there's an order of magnitude more deliveries happening (and drivers working) these days vs pre-Uber.
It doesn't take many orders to keep an individual driver busy. Typically the restaurants would manage how many, and which, drivers worked each night. If the night was unexpectedly quiet then a driver might finish early.
> With delivery apps, a restaurant can have just a few orders per night and still be open for delivery.
Yeah, the main benefit of delivery apps is enabling restaurants who primarily serve sit-in diners to deliver also. The overall benefit to delivery focused restaurants is much more tenuous.
> I would bet that there's an order of magnitude more deliveries happening (and drivers working) these days vs pre-Uber.
Perhaps, but if a driver was already busy all night under the previous model, then they're potentially harmed by the current model.
The main drawbacks to these services are the outrageous fees they charge to make money, and that there's more than one so drivers and businesses have to manage an array of phones or tablets. This would address both of those things.
Aye. Arguably this is why old-school streaming Netflix won so well -- all of your options in one place. Likewise, there is one app for all food choices nearby.
Also agree on the second point, though presumably larger chains in built up areas could play the same game; e.g. Domino's in a borough of NYC has an "all-drivers-in-Queens" pool.
Vendored web POS is widely available, and was emerging before UberEats and DD ever did. See: Toast
> A delivery service that aggregates demand & supply is very useful for restaurants & drivers.
This is only true in theory. You aren't giving enough credit to the logistical skills of small business owners, they are really good at allocating and dispatching drivers. If you're small enough to have no deliveries for several hours, then don't schedule any drivers during that time. If a delivery comes in, tell your cashier the address and have them run the delivery. Besides being quite efficient, there's an added bonus that you're cross-training your staff. That's how we always did it, at least.
It's anecdotal evidence, sure, but every delivery driver I have asked (half a dozen from several different cities and states) has said that their job is harder and pays worse today than 10 years ago.
"Well, just be more lean!" What a concept, I'm sure they haven't thought of that. It's much easier said than done. Logistics software is extremely complicated at scale- there's a reason governments subsidize delivery logistics through services like USPS, Royal Mail, etc. However, at the one-business microcosm, it's a simple enough problem that a seasoned owner/manager can organize an optimal dispatch in their head, on the fly.
1. The single website/app is not just useful for discovery, but also to provide a consistent ordering experience. An individual restaurant might take orders over the phone, via their website, or via their own app. Those options will vary from one restaurant to the next. Not great for customers.
2. In the old model, restaurants would have to decide how many drivers to have on hand at any given time. During quiet periods they would have to decide between not offering delivery at all, or having a driver sitting around doing nothing. A delivery service that aggregates demand & supply is very useful for restaurants & drivers. Pooling of resources & layering on surge pricing creates a lot of elasticity.
I would argue that what they should have done is tried to at this value at minimal cost to customers, drivers & restaurants. If they were leaner businesses the overall proposition could be a lot better.