Hi, 3 charts for you today:
US delivery behemoth DoorDash reported their full year 2021 results on Wednesday, shaking off some doubts that food delivery demand would slow amidst re-opening with 369 million orders coming through the platform in the final quarter of last year.
That number was ahead of expectations, and sent DoorDash's share price higher, but it still wasn't enough for the company to make a net profit, instead notching a $155m loss.
That's not a surprise to anyone familiar with the industry. Some great research from our friends at McKinsey suggests the economics of food delivery are still challenging for everyone involved – delivery companies, drivers and restaurants.
Indeed, many of the restaurants on aggregator platforms may actually be losing money (70c) on an average order. Drivers are making ~$9 per order including tip before considering their own expenses, and the platforms are generally squeezing out just a 3-4% contribution margin.
Some of these numbers come from the National Restaurant Association and may tell a slightly different story to DoorDash’s own analysis, but the fact remains that despite ~10 years of rapid growth, food delivery profits are hard to find. Add to the mix the new and fiercely competitive ultra-fast grocery delivery market, and things get even murkier still.
Please sir, I want some more
With trends like larger average orders, more users to optimize multi-order trips, better technology, more in-app advertising and higher market concentration, these numbers are going to keep evolving — but how any improvement in economics is shared between stakeholders remains to be seen.
If there's a local spot you'd like to support (it is Friday after all), your best bet is probably still to go to the restaurant direct.
QR codes have thrived in the pandemic, evidenced by Coinbase's Super Bowl ad last Sunday, which featured nothing but a bouncing QR code — and crashed the app because it was so popular.
The small square barcodes have seen a surge in usage around the world for important travel documents, COVID tracking or just to open up the menu at a now paperless restaurant. One Irish man even got a QR code inked on his arm - a personal link to whatever he wants it to be. But QR codes are hardly a new technology.
Don't call it a comeback
QR codes are actually almost 28 years old, invented by Japanese automotive company Denso Wave back in 1994 to streamline their manufacturing process.
Although their adoption was slow in western countries before the pandemic, they have long been used in Asia. In China, there's reportedly a QR code for just about everything, but they are most synonymous with payments. More than 90% of mobile payments in China are made on WeChat or AliPay, both of which rely on QR codes in some format.
QR codes have thrived in the pandemic, evidenced by Coinbase's Super Bowl ad last Sunday, which featured nothing but a bouncing QR code — and crashed the app because it was so popular.
The small square barcodes have seen a surge in usage around the world for important travel documents, COVID tracking or just to open up the menu at a now paperless restaurant. One Irish man even got a QR code inked on his arm - a personal link to whatever he wants it to be. But QR codes are hardly a new technology.
Don't call it a comeback
QR codes are actually almost 28 years old, invented by Japanese automotive company Denso Wave back in 1994 to streamline their manufacturing process.
Although their adoption was slow in western countries before the pandemic, they have long been used in Asia. In China, there's reportedly a QR code for just about everything, but they are most synonymous with payments. More than 90% of mobile payments in China are made on WeChat or AliPay, both of which rely on QR codes in some format.
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