There’s a funny article on The Verge about a pizzeria owner making money by buying his own $24 pizzas from DoorDash for $16. Considering that NYC just passed some laws limiting what third-party delivery services (see: Ordering Food by Phone? Check the Number), this is kind of a strange twist.
One of the most common strategies for tech companies focused on growth is to over-incentivize both consumers and businesses until they have achieved their growth goals. This is extremely costly (and not always a winning strategy), but for companies like DoorDash, there are few choices. Win or die. It’s kind of binary.
The result? A restaurant can order its own pizzas for $16 and get an $8 commission check from DoorDash. Not sustainable, but an interesting way to increase your pizza profits in a time where every pepperoni counts!
Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.