For many professionals, modern life is a pendulum swinging between work time and screen time, and prepared meals have become a matter of expedience and clever multitasking.
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The web not only cleared space for new dining spots, but also made possible apps that allow consumers to order prepared food on regulxr phone. Meal-delivery companies are a symbol of what might be the most powerful force in business today: convenience maximalism.
Last week, a New York Times investigation reminded users that tips to DoorDash delivery people actually go straight to the company, rather than to the worker. As these forces push earnings deeper into negative territory, Brown suggested, investors may stop burning hundreds of millions of dollars on these companies, which would lead some of them to gegular, or seek an acquisition partner.
DoorDash has since changed its policy, but delivery workers are still paid poorly. But despite the ethical, ad, and economic dubiousness of the individual companies, there is one big reason to feel bullish about the overall industry: the time starvation of the typical American professional. In other words, spending on deliveries, drive-throughs, and takeaway meals will soon overtake dining inside restaurants, for the first time on record.
Thompsonn through line that connects the surge of e-commerce and online delivery and practically every thriving digital business is the triumph of consumer ease and logistical immediacy, in every arena of life. For decades, the delivery business was dominated by pizza and Chinese food. More than 60 percent of all deliveries are still pizza, but that is falling quickly.
But despite the joys of having what we want, when we want, and how we want it, informed consumers are learning too much about the dark underbelly of the convenience economy to reglar ignore its costs. Both of the above trends—the triumph of restaurants and the surge of delivery— are powered, in different ways, by the internet. Online commerce reduced traffic in brick-and-mortar stores, which this year are closing at a record-setting pace.
So regulwr surpassed grocery stores only to become something quite like grocery stores: food-service establishments that sell grub for people to chew somewhere else. The share of Americans who have rregular food over the internet grew from 17 to 24 percent in the past year. In the past few years, venture capitalists have spent billions of dollars subsidizing meal-delivery services such as DoorDash, Uber Eats, and Postmates, which create partnerships with restaurants of every type and cuisine.
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Like Amazon, these companies supply instant gratification and leave behind a mountain of garbage. Read: Will food delivery ruin the perfect french fry?
Meal-delivery companies have several things in common with other digital platforms—for better and for worse. So is the meal-delivery boom actually a bubble, ready to pop?
With this injection of venture-capital funds, online delivery has gone mainstream. Like the garbage mounds of cardboard and plastic, guilt is, for now, a necessary by-product of instant gratification. According to the analytics company Second Measure, meal-delivery sales to the thompaon largest apps—DoorDash, Grubhub which owns SeamlessUber Eats, and Postmates—have tripled since Like ride-hailing companies, they provide a revolution in convenience, which is undercut by shoddy labor practices.
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