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Thursday, December 10, 2020 11:58:30 PM
The issue is that the costs of these services to the restaurants needs to go down drastically. Many restaurants operate on razor thin margins.
This could hurt the margins on these type of companies as it's not sustainable long term for most restaurants to use it.
If the overall food delivery becomes massive as time goes on ,what stops restaurant chains from building out their own apps or delivery systems and cutting our these companies. Domino's is killing it with that model.
It's a catch 22. The restaurants too small to create their own delivery systems can't sustain on fee charged long term and the ones who could have the ability to absorb the fee could also have the ability to build out their own delivery systems.
Plus in terms of DASH being valued more than the rest of the food apps combined is major issue. Many people are going to get burned bad here. IMHO.
I've been in the restaurant business for quite some time and I'm speaking mostly on expirence so take it with a grain of salt
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