"Some delivery companies are valued higher than restaurants for which they deliver. For example, DoorDash was valued at $4B after receiving its last round in August the same as Wendy’s whose burgers it delivers.” https://www.wsj.com/articles/investors-are-craving-food-delivery-companies-1540375578 … Will delivery have greater pricing power?
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Can any single platform get enough share to create pricing power? Network effects are weak since restaurants can work with many platforms. So key q is how a platform can differentiate if not on supply. ps AV's are serious confound to all analysis here.
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When you drive 10-30% of orders, you have substantial pricing power.
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Industries in which a firm has 10% control of the demand side vary greatly in outcomes. Do nine firms control the rest or 100s? Are there sale side economies too? What about brand, intellectual property and regulation? Restaurant franchisors barely have 10% share all together.
End of conversation
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