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posted by martyb on Tuesday May 19 2020, @03:37AM   Printer-friendly
from the ...we'll-make-it-up-in-volume dept.

Doordash and Pizza Arbitrage:

In March 2019 a good friend who owns a few pizza restaurants messaged me [...]. For over a decade, he resisted adding delivery as an option for his restaurants. He felt it would detract from focusing on the dine-in experience and result in trying to compete with Domino's.

But he had suddenly started getting customers calling in with complaints about their deliveries.

Customers called in saying their pizza was delivered cold. Or the wrong pizza was delivered and they wanted a new pizza.

[...] He realized that a delivery option had mysteriously appeared on their company's Google Listing. The delivery option was created by Doordash.

[...] Doordash was causing him real problems. The most common was, Doordash delivery drivers didn't have the proper bags for pizza so it inevitably would arrive cold. It led to his employees wasting time responding to complaints and even some bad Yelp reviews.

But he brought up another problem - the prices were off. He was frustrated that customers were seeing incorrectly low prices. A pizza that he charged $24 for was listed as $16 by Doordash.

[...] He called in and placed an order for 10 pizzas to a friend's house and charged $160 to his personal credit card. A Doordash call center then called into his restaurant and put in the order for those 10 pizzas. A Doordash driver showed up with a credit card and paid $240 for the pizzas.

We went over the actual costs. Each pizza cost him approximately $7 ($6.50 in ingredients, $0.50 for the box). So if he paid $160 out of pocket plus $70 in expenses to net $240 from Doordash, he just made $10 in pure arbitrage profit. For all that trouble, it wasn't really worth it, but that first experiment did work.

[...] But we did realize, if you removed the food costs this could get more interesting.

[...] The order was put in for another 10 pizzas. But this time, he just put in the dough with no toppings (he indicated at the time dough was essentially costless at that scale, though pandemic baking may have changed things).

[...] Note 1: We found out afterward that was all the result of a "demand test" by Doordash. They have a test period where they scrape the restaurant's website and don't charge any fees to anyone, so they can ideally go to the restaurant with positive order data to then get the restaurant signed onto the platform. If we had to pay a customer fee on the order, it would've further cut into our arbitrage profits (though maybe we could've incorporated DashPass as part of the calculation).


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  • (Score: 0) by Anonymous Coward on Tuesday May 19 2020, @06:08AM (26 children)

    by Anonymous Coward on Tuesday May 19 2020, @06:08AM (#996197)

    I likely have more entry/exit stamps in my passport than you. If you have a pizza you think is superior, name it.

  • (Score: 3, Funny) by gtomorrow on Tuesday May 19 2020, @06:51AM (22 children)

    by gtomorrow (2230) on Tuesday May 19 2020, @06:51AM (#996208)

    Oh, this is just too easy.

    How about pizza in Naples? And I mean just about anywhere in Naples. I'm not sure but I believe that if you order it Hawaiian-style, local ordinance demands they shoot to kill.

    That said, NY pizza is the best pizza inside of North America...but it's been, unfortunately, years since I could last confirm that.

    Next topic: how gumbo (or a po' boy sandwich) anywhere else in the world outside of Louisiana is "good."

    • (Score: 3, Informative) by Mykl on Tuesday May 19 2020, @07:16AM (3 children)

      by Mykl (1112) on Tuesday May 19 2020, @07:16AM (#996219)

      Localisation really is a thing.

      As an Australian pizza lover (particularly the "Aussie" pizza - ham, cheese, sauce and an egg on top), I was really looking forward to experiencing true Italian pizza when I visited there years ago. To my bitter disappointment, I discovered that I hate the taste of Prosciutto, which is used on almost every Italian style pizza - no ham to be seen anywhere.

      I was so sad I had to drown my sorrows in Pasta and Gelato for 2 weeks.

      • (Score: 4, Funny) by gtomorrow on Tuesday May 19 2020, @08:36AM

        by gtomorrow (2230) on Tuesday May 19 2020, @08:36AM (#996236)

        [comic relief]
        The one universal constant, proven once again:

        There's no accounting for taste.

        In your defense, islander, prosciutto crudo cooked on a pizza in my—and not only my—opinion becomes too dry and salty. Prosciutto crudo is meant to be eaten as is, in a panino or accompanied by cantaloupe slices, where the buttery flavor and texture is to be fully appreciated. Then again, you could have ordered a pizza with prosciutto cotto which is what you'd normally call "ham".

        I do remember an (American) ex-girlfriend, when she saw prosciutto crudo for the very first time, said "...I'm not gonna eat that!" See universal constant.

        I'll forgive that fact that your island culture is derived from centuries of British settlers left to develop on its own (you share that aspect with the United States). And everyone knows that in hell, who are the cooks?

        I KID I KID!

        [/comic relief]

      • (Score: 2) by FatPhil on Tuesday May 19 2020, @09:26PM (1 child)

        by FatPhil (863) <{pc-soylent} {at} {asdf.fi}> on Tuesday May 19 2020, @09:26PM (#996551) Homepage
        > Prosciutto, which is used on almost every Italian style pizza - no ham to be seen anywhere.

        How can there be prosciutto on almost every italian pizza, but no ham to be seen anywhere, given that prosciutto is a ham?!??!
        --
        Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
        • (Score: 3, Touché) by Mykl on Tuesday May 19 2020, @11:01PM

          by Mykl (1112) on Tuesday May 19 2020, @11:01PM (#996613)

          Ah, the only thing I like better than an engaging response is one that points out a technical flaw in my wording!

          Yes, you are technically correct (which is the best type of correct!) - prosciutto is a type of ham. I prefer much milder ham (such as the type normally found in sandwiches) on my pizza. Like this [tripadvisor.com]

    • (Score: 0, Funny) by Anonymous Coward on Tuesday May 19 2020, @07:20AM (12 children)

      by Anonymous Coward on Tuesday May 19 2020, @07:20AM (#996220)

      Lol foreigners

      America (texas) and Japan routinely win in the best scotch category
      America (california) beats france and italy at wine
      America beats in cheese competitions
      America wins in vodka competitions
      America beats germany in beer competitions

      Have we won in pizza? I suppose you might find a slice here and there that meets the italian standard currently, but soon this will be ours as well.

      Everything anyone else can do, we can do bigger, better, and cheaper. RIP the hallow husk that was Europe, we took all your best and brightest and all you have now is cucks and memories.

      • (Score: 1, Touché) by Anonymous Coward on Tuesday May 19 2020, @08:12AM (1 child)

        by Anonymous Coward on Tuesday May 19 2020, @08:12AM (#996227)

        You clearly manage to beat the rest of the world in arrogance and over-the-top competitiveness.

      • (Score: 5, Funny) by kazzie on Tuesday May 19 2020, @08:32AM (1 child)

        by kazzie (5309) Subscriber Badge on Tuesday May 19 2020, @08:32AM (#996234)

        And in baseball, America wins the World Series virtually every year!

        • (Score: 2) by sonamchauhan on Tuesday May 19 2020, @10:04PM

          by sonamchauhan (6546) on Tuesday May 19 2020, @10:04PM (#996583)

          Not to mention winning in the TV ratings... RATINGS!!!!!

          And Oscar, Grammy and Emmy awards.

      • (Score: 2) by gtomorrow on Tuesday May 19 2020, @08:53AM (4 children)

        by gtomorrow (2230) on Tuesday May 19 2020, @08:53AM (#996240)

        You're so funny! But instead of modding you "funny"...

        Citations needed, and how! Otherwise, stand in line to be called out...present waiting times: ~3 hours.

        Maybe in competitions held solely in the United States your affirmations hold true.

        • In the United States you have one domestic cheese in 13 different colors and 47 different names, discounting the garbage sold as "cheese product".
        • While not Thunderbird or MD20/20, California wines can't hold a candle to even the cheapest Italian wines.
        • And while I personally am not particular for German beers, I can't believe you're saying American beer (I don't care if you're talking microbrewery or not) beats out any Anglo-Saxon/Nordic product. Then again, I can't see you snickering while posting, so I have to assume you're serious...?

        Are you gonna tell us next that the United States won the World Cup too? You are so funny!

        • (Score: 2) by Kitsune008 on Tuesday May 19 2020, @06:14PM (1 child)

          by Kitsune008 (9054) on Tuesday May 19 2020, @06:14PM (#996438)

          Well, I'm not trying to defend the deluded AC, but even you have to admit we are winning the coronavirus competition.
          More cases confirmed, and more deaths, than any other country.

          Yeah Trump, we ARE tired of your style of winning.

        • (Score: 0) by Anonymous Coward on Tuesday May 19 2020, @10:55PM (1 child)

          by Anonymous Coward on Tuesday May 19 2020, @10:55PM (#996610)

          LMFAO. You're just ignorant. Michigan produces the best beer in the world, hands down. California wine is overrated, but it's 1/2 the price and nearly as good. And... You know nothing about craft cheese so let's not even go there (no, I didn't mean Kraft).

          • (Score: 2) by gtomorrow on Wednesday May 20 2020, @01:53PM

            by gtomorrow (2230) on Wednesday May 20 2020, @01:53PM (#996877)

            Yeah, anonymous coward, just as I thought. I ask for citations and you just make more things up and purport them as "facts" peppered with insults.

            Yawn...we're so done here.

      • (Score: 4, Funny) by FatPhil on Tuesday May 19 2020, @09:29PM (2 children)

        by FatPhil (863) <{pc-soylent} {at} {asdf.fi}> on Tuesday May 19 2020, @09:29PM (#996553) Homepage
        > America beats in cheese competitions

        Is it win in grammer competings?
        --
        Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
        • (Score: 2) by ChrisMaple on Thursday May 21 2020, @12:59AM (1 child)

          by ChrisMaple (6964) on Thursday May 21 2020, @12:59AM (#997175)

          There's nothing wrong when taken in context, which implicitly supplies the missing object. Thus:

          America beats [others] in cheese competitions.

          • (Score: 2) by FatPhil on Thursday May 21 2020, @07:44AM

            by FatPhil (863) <{pc-soylent} {at} {asdf.fi}> on Thursday May 21 2020, @07:44AM (#997312) Homepage
            Oh, I could work out what he was trying to say, I was asking a genuine question, which I notice you have failed to answer.
            --
            Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
    • (Score: 0) by Anonymous Coward on Tuesday May 19 2020, @11:11AM (2 children)

      by Anonymous Coward on Tuesday May 19 2020, @11:11AM (#996273)

      > How about pizza in Naples?

      Certainly wasn't what I was expecting. Very thin, hardly any toppings -- sort of a "pizza lite" or cheese on a cracker, relative to a deep dish that is actually nourishing (as well as yummy). We were in Naples several days, with Italian hosts (on business) and were generally disappointed with the food. An expensive steak was tough like shoe leather--perhaps the local Dons siphon off all the filet mignon? However, the entertainment at dinner (outdoors) was great -- little birds and cats circulating through the restaurant were having a great time!

      The walk up to Vesuvius pretty well set the stage for the rest of our visit--bait & switch everywhere. One parks at the end of the access road part-way up the volcano and walks up a trail. With no prior warning, near the top, the trail turns a blind corner and that is where you have to pay admission to get to the top where you can look down into the volcano. By then of course you have already invested a lot of effort in climbing, so you grudgingly pay for what certainly appeared to be a public/free park. In reality the view isn't all that exciting (unless you are a volcanologist?)

      • (Score: 2) by gtomorrow on Tuesday May 19 2020, @01:33PM (1 child)

        by gtomorrow (2230) on Tuesday May 19 2020, @01:33PM (#996329)

        Hahahahaha! Turista. Welcome to Napoli! They can see you comin' a kilometer away!

        • (Score: 0) by Anonymous Coward on Wednesday May 20 2020, @01:59AM

          by Anonymous Coward on Wednesday May 20 2020, @01:59AM (#996662)

          Yep, the Napolis won alright. Not going back and not recommending anyone else bother to visit Naples either.

    • (Score: 2) by OrugTor on Tuesday May 19 2020, @04:01PM (1 child)

      by OrugTor (5147) on Tuesday May 19 2020, @04:01PM (#996390)

      The best pizza I had was in Venice. It was slightly better than any other pizza. No matter how good Napolitan pizza, I would not risk my life in Napolitan traffic to get one.

      • (Score: 0) by Anonymous Coward on Wednesday May 20 2020, @02:07AM

        by Anonymous Coward on Wednesday May 20 2020, @02:07AM (#996666)

        Interesting, I had a great time in Naples traffic. From our 4th floor hotel room the square outside looked kind of like concrete -- large gravel (buses & trucks), smaller gravel (cars) and sand filling in the little gaps (mopeds). Sort of a reverse car analogy...?

        Driving in Naples was FUN (notice I didn't say "fast"). We rented a tiny Matiz (800cc 3-cylinder) hatch that was a good fit for narrow roads. If a hole opened up, everyone went for it (at low speed), and the winner got to move. It's all about situational awareness, reflexes and calculated aggression. I didn't take any of this personally and I don't think any one else did either--the competition was very good natured with smiles and hand waves all around. Almost communal, we were all stuck in the same jam together.

  • (Score: 0) by Anonymous Coward on Tuesday May 19 2020, @07:15AM

    by Anonymous Coward on Tuesday May 19 2020, @07:15AM (#996218)

    To be fair to NY, their Ruben is the best but only in like 1 or 2 places. The Ruben in NYNY, Las Vegas is better than most too.

  • (Score: 2) by PocketSizeSUn on Tuesday May 19 2020, @09:14AM (1 child)

    by PocketSizeSUn (5340) on Tuesday May 19 2020, @09:14AM (#996246)

    Outside of Naples, Italy, try Sao Paulo, Brazil. Some really, really good pizza to be found there.

    • (Score: 0) by Anonymous Coward on Tuesday May 19 2020, @11:55AM

      by Anonymous Coward on Tuesday May 19 2020, @11:55AM (#996290)

      Sicilians can do their version of pizza pretty well, and sardinian pizzas with sardinian cheese is unorthodox too but I can recommend it. Then, if you enter the almost true pizza, it all becomes a matter of the quality of the ingredients, the world champion a couple years ago was from a place near the border with slovenia.