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Comment by boringg

7 hours ago

I mean neither of these companies provide an important service. If they both disappeared tomorrow I think most people wouldn't care.

IMO grocery delivery is a game changer. I don't use either service, but use a different one[s]. Even with a tip (I have been doing $15/per delivery), it's not much more expensive than normal groceries at Trader Joe's etc, and I don't have to put on outdoor clothes, walk to my car, navigate traffic, navigate the aisles, wait in line, reverse... IMO big QOL of life increase.

And second-order effects like I can always have fresh fruit + veggies / not worrying about rot by getting it in smaller quantities delivered more often.

For those wondering about price: It's much cheaper than takeout or prepared food delivery, but more expensive than getting your own groceries. Offset a bit by less food waste.

  • > Even with a tip (I have been doing $15/per delivery), it's not much more expensive than normal groceries at Trader Joe's

    In my experience its significantly more expensive for groceries: up to 20% for items + service fee + subscription + tip.

    I was canceling Instacart subscription and they offered me another year for discounted price ($17). I kept it but I won’t ever extend it for full price given how much more it costs.

    • I should clarify: I'm referring to Amazon (prime or whole foods), which I understand is significantly cheaper than Instacart. It might be worth cross-shopping in this case.

  • How can that be profitable on the long run?

    Feels like it will end up more expensive in a few years

    • I suspect this as well. Enjoying it while it lasts... I suspect the facilities being vertically-designed for this helps, but not enough(Especially the prime groceries; I suspect Whole foods has some but not the same extend?)

  • But if they were gone, the worst is you're putting pants on and getting your own products. There are not essential, they're simply a labor and regulatory arbitrage for gig workers to schlep product to consumers at very low wages.

    • I get this, but there are a few scenarios where grocery delivery is genuinely amazing.

      - My parents are determined to age in place in their home. They get tired more easily than they used to, and aren't capable of doing as much. Especially in the winter, grocery delivery is a huge help for them.

      - People with disabilities may or may not be capable of going to the store. Even for the ones who are capable, it is a much larger time commitment.

      - For parents of young kids, leaving the house isn't just putting on pants. It's checking diapers, getting the kids to wear shoes, and timing the trip so it doesn't interfere with naptime, feedings, etc. This is a temporary phase! It doesn't take long before the kids are big enough to enjoy a trip to the store.

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    • if they were gone, the worst is you're putting pants on and getting your own products

      Says someone with no problems putting on his pants and making a grocery run.

      Just try to remember your own words when you get older. You'll get your turn. Everyone does.

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Antitrust does not have "important service" requirement. What has happened in gaming is another travesty but there is plenty of people who would say it's not "important service". Antitrust must be universal.

TYVM. But I rely on Instacart as I live alone and can't drive anymore since my eye surgery 10 years ago. If I didn't have instacart I don't know how I'd ever get any groceries.

Grocery delivery is an important service for a large chunk of the population. About 40 million people in the country (mostly low income) live in food deserts. Plenty more don't own cars. Doordash & co have burned VC money for a decade to monopolize the delivery pipeline so restaurants and grocery stores rarely hire their own drivers anymore. And now with this kind of consolidation they can raise their prices unchecked.

  • Do you have a source that these low income Americans are the ones who are ordering food? My understanding was this was largely people with additional disposable income who were doing it for convenience and not necessity as the product for the price was a good enough trade off. I find it hard to believe low income Americans are getting their groceries delivered when they can’t afford the base prices for the most part.

  • The food desert thing has been debunked. And the notion that millions of low income people are using DD to get broccoli delivered is laughable.

I'd be curious to see if it lowered food prices at all if these services and their upcharges weren't around anymore to influence pricing.

What if you’re disabled and need to order food ?

  • The way this was handled before these gig economy food delivery companies sprang up. People didn't automatically die of starvation because they were disabled and became adults prior to DoorDash. Medicaid and Meals on Wheels fill in some of the gaps depending upon age and state.

    • These companies springing up put the old ones out of business. For example check the number of restaurants that hire their own drivers now. There's no going back to the "old way" when it doesn't exist. And now this kind of consolidation means they get to jack up prices however they want.

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  • How many of their customers fit this description?

    • I had a co worker who was deaf.

      Luckily he came of age just as texting took off. I guess in theory he could of relied upon a translator to make phone calls for him, but his life was much improved by modern communication.

      Even if new technology makes things easier for 99% of people who are lazy, but is essential for that last 1%, it's a net positive.

      Consolidation in this industry is horrible for everyone. Less competition means higher prices and lower pay.