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Comment by paulddraper

4 hours ago

77% of the U.S. 3rd party food delivery is DoorDash + Instacart.

(Nearly all of the remaining amount is Uber Eats.)

So if not a monopoly, then at least a duopoly.

As a rule, two-sided marketplaces are very difficult to disrupt.

4 comments

paulddraper

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tomrod  4 hours ago

The BATNA:

- Other delivery service

- Other task service

- Go yourself

While they are an effective duopoly, it would be good to also consider them as monopolistic competition versus a true market split out -- there is very little traditional moat, and almost only network effect due to restaurants accepting their services and menu.

  • paulddraper  3 hours ago

    > almost only network effect due to

    "Only" is a massive amount of lifting in that sentance.

    Network effects are among the most durable/effect competitive qualities. And they have that network on both sides.

rektomatic  4 hours ago

There's literally 100s of apps that provide food delivery service. Just because one is doing really good doesn't make it a monopoly.