Is Food Delivery Going Away?
In the latest episode of the "The Tech Report" podcast, hosts Paul and Rob dive into the rapidly evolving world of food delivery technology. With Rob recently returning from a trip to Asia, the discussion kicks off by highlighting how pioneering delivery and online ordering platforms like foodpanda originated in markets outside the U.S.
The crux of the episode examines the current state and sustainability of third-party delivery services like Uber Eats, DoorDash, and GrubHub. While acknowledging these platforms likely saved 15-20% of restaurants during the pandemic, Rob expresses concern over the high fees charged to operators, recounting a personal story where a restaurant accidentally upcharged him 30% by mistakenly applying third-party pricing.
Looking to the future, the hosts analyze whether emerging technologies like AI, blockchain, and autonomous vehicles could disrupt the existing delivery model. They ponder if tech giants like Amazon, Google, or Elon Musk's companies could create an integrated solution circumventing current third-parties. The discussion raises whether restaurants pivoting to their own ordering apps is a harbinger of things to come.
Paul and Rob reflect on the consolidation patterns witnessed in other industries like airlines and hotels, where companies ultimately reclaimed share from third-party booking sites. They posit whether a similar shakeup is inevitable for restaurant delivery as consumer preferences and technologies evolve.
With no clear winner among the various industry players, Rob argues the deciding factor will come down to creating the most seamless, cost-effective experience aligning with customer desires. Whether third-parties can adapt, or new offshoots of big tech become the gatekeepers, the food delivery space is ripe for transformation.
Ultimately, the episode paints a scenario where the next few years could see seismic shifts in how customers order delivery, restaurants market themselves, and platforms facilitate these transactions - with innovators and consumer demand charting the revolutionary course.
