Doordash and Pizza Arbitrage

Doordash and Pizza Arbitrage

Picture this: You own a pizza place. You don’t do home delivery. A tech company, awash in venture capital, decides you actually do home delivery, without asking you. On their platform, people can order pizza, someone picks it up at your place and delivers it to them. Now the fun part: While you sell your pizza at $24 each, people ordering them pay the platform only $16. Obvious next step: You go to that platform, pay $160 for 10 pizze, someone shows up and pays you $240 for those and delivers them…to you. Free money. A piece on the mechanics and absurdities of the highly competitive food delivery business.

From Weekly Filet #303, in May 2020.

💔 Some older links might be broken — that's the state of the web, sadly. If you find one, ping me.

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