3P delivery apps allow merchants to pay a variable delivery cost just for the deliveries they use. They have high costs when they hire too many and have to pay them even when not in use.
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Merchants have a very high opportunity cost when they do not hire enough drivers and cannot fulfill incremental orders. Building out a fleet is very capital intensive and operating it efficiently is very complex due to economies of scale. Merchants use 3P delivery apps to externalize delivery and customer acquisition, among many other things. Sure, you could just call/email the restaurant and pick up the food yourself, but these people are not the target demographic of these services. Also, they don't want to bother dealing with merchants for incorrect or missing items and refund. Users don't want to waste time looking up the merchant website, sharing credit card info with random websites and placing orders they won't be able to track. If fees were 'insane' or if 3P delivery apps did 'absolutely nothing', they would not have millions of active users monthly on all the 3 sides of the market.Ĭonsumers use 3P delivery apps - a luxury service - because of convenience. That's an interesting take and shows very little understanding of 3-sided marketplaces like Seamless. Seamless doesn't get their insane 20% cut for doing absolutely nothing
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