The Bloodletting Comes to DoorDash.

Robert59

Robert59

Well-known Member
Location
Now I live in Tennesee. Did live in Michigan.
More than 1K corporate employees were laid off Wednesday.

DoorDash shares are down more than 60% for the year but saw a bump on Wednesday after the company announced it was axing 1,250 corporate employees as a cost-cutting measure. CNBC reports it had 8,600 such employees at the end of last year; the AP reports the cuts represent 6% of its total workforce. Those laid off will receive 17 weeks of severance and have health insurance through March. CEO Tony Xu gave context in a message to employees, where he explained the company "was actually undersized" prior to the pandemic.

https://www.newser.com/story/328578/doordash-becomes-next-tech-player-to-shed-jobs.html
 

Only to be expected. The food delivery business grew to unmanageable size during the pandemic/lockdowns, but with most businesses reopened, time for the weaker companies to shrivel and die.

Capitalism eats its young; always has. It's why regulation works best on Big Corp., when they reach the point of stifling innovation (see: AT&T).
 
In these parts door dash is doing well .

We have a few hundred restaurants to choose from and prices are not marked up on most .

IT USED TO BE we all ordered LOCALLY ..

So the restaurants had a lock on local business .

Like internet shopping eating has changed .
We have door dash , caviar , grub hub , seamless and Uber eats now ,bringing hundreds of restaurants from a wider area right to your door .

Now all these local restaurants no longer have the lock on local business.

So as not to lose business , they need to expand out their service area .

So it is worth it for them to share the profits with these delivery companies that bring in business to them they would never see from outside the immediate area.


We have had a free dash pass membership free for years through our credit card and use it one to 2x a week .

Plus if you pick up you get a 5% discount so we like variety in food and choices.

We have fabulous restaurants that take part .

Also many areas have very difficult parking too .

The main drag by us is near impossible to find parking so we rarely would go out to eat there .

So many others felt the same way .

Now we utilize them through door dash so again it is bringing in business they just wouldn’t see otherwise
 

Part of the problem now is that the food that they would deliver has gotten so expensive it prices out home diners from even going to the place in person.
 
JaniceM said:
Does that mean the companies will start charging more?
Click to expand...
They have been and that's the problem-the price of the food without a delivery charge has already risen/priced many people out of the home delivery market. Home delivery was already a luxury now it's simply unaffordable to many.
 
Some of these layoffs are to be expected as covid pandemic winds down and becomes more endemic. People are going out to restaurants and stores again and don't have as much need for delivery. Also, people are returning to the office rather than working from home.

Payrolls surged by 261,000 in October, which was better than expected, so while there are layoffs, there is more than enough hiring to compensate.
 
Food inflation is hitting restaurants, throw a delivery charge that accounts for higher gas prices takeout/delivery is too much for many. Dinning out is simply is too much. Yes people back to work doesn't help but at the peak of the lockdowns most were not ordering multi meals for delivey either.

https://www.bqprime.com/business/demand-for-pizzas-to-burgers-falters-as-menu-prices-soar

Pizza is getting hit with inflation so hard where more customers are now picking up orders.

https://www.bridgemi.com/business-w...a-customers-picking-dinner-save-delivery-fees
 

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