Over the weekend, I ordered some food from Postmates. After waiting for about two hours, I opened the app again to find out where the delivery was. Much to my surprise it was delivered – except not to me. I got frustrated. I wrote to Postmates customer support, and didn’t hear back from them for a bit. By then it was almost 10.30 pm. I ended up making some eggs and going to sleep. But before I did that, in a fit of anger I wrote a few snarky lines about the service on my private Facebook account. And 15 minutes later, I took it down. Continue reading “The Nicer Internet “
“I think the pricing of some of the food startups is borderline criminal. I think it’s absolutely disgusting the way they hide fees in order to fake profitability.” Matt Maloney, CEO of Grubhub
There are a lot of hidden costs in services such as Postmates, Caviar and DoorDash. I have definitely reduced my reliance on these offerings and instead now plan my dining better. However, there are days when convenience trumps these hidden charges or even inflated prices. Morgan Stanley Research estimates that the online food delivery is about $10 billion of a total $210 billion “core addressable restaurant spend.”
Postmastes raised a whopping $80 million in its most recent round of funding and that prompted research firm CB Insights to ask the question is the food-delivery industry a little overcrowded? Or to look at it alternatively, is it over overfunded. Or as WSJ points out, there is an uber for everything now.