S “she mentions the hard labor of drinking whiskey, but does not discuss the cost of the labor or the cost of the food.
What? No full service retirement home for the 40 and under set? Taking care of oneself is so exhausting!
The real horror is that they are not investing in 401k's, real estate (HOME), and are spending $50-$100/day to eat? That's fuzzy math and poor planning.
Very good article illustrating that sales and profit aren’t the same thing. If you lose money on every sale, more sales simply means more losses.
I’ll assume that the author understood that he left out the cost of food in the Blue Apron example and was just using it to make a point. The actual margin on $100 sales of Blue Apron food is probably under $20.
Like loss leader Twitter they’ll make it up in inflated stock value
Seems reminiscent of the first Internet Bubble circa 1999 — a lot of companies didn’t have products, but they had ideas. Billions of dollars flowed in but eventually a lot of it came crashing down.
Lesson from that bubble: You need to actually have a product.
Lesson from the current bubble: You need to actually have profits.
Ping.
It’s not about building a sustainable profitable business, it’s about doing something that will be seen as so cool and edgy that you’ll be able to do it with other people’s money, and then cash out via IPO or sale before it all falls apart.
Then you can call yourself a serial entrepreneur and do it all over again!
Echos of the “new economy” all over again. The idea that you don’t need to make profits was stupid then and it’s stupid now.
You think it’s expensie now, just wait until medicare for all and living wages kick in...
IF the food is good it's an excellent form of advertising.
Rather than paying the New York Times a few thousand to run an ad that hits people all over the city - and sometimes all over the country (wasted effort) this ad ONLY targets people who self-select they might become future customers.
If I'm reading the New York Times and I live in Florida I'm NOT going to visit that restaurant - and the owner has thrown away his ad money.
The only thing I got out of this story was a reminder of how much I hate millennials.
That leaves a battle between the drivers and the food delivery companies. How much extra are people going to spend in order to have a $6 McDonald's Big Mac value meal delivered to them?
$5? $10?
At what point does it make more sense to just go yourself? (Or, are these companies charging a percentage for delivery?)
Let's be generous and say that customers are willing to pay $15 for every delivery. How much of that goes to the driver, and how much goes to Uber Eats or Door Dash?
From a driver's standpoint, they've got to go to the restaurant, wait for the order, and then deliver it to the customer. What does that take total...30 minutes? How much are drivers really earning, and at what point do so many of them say, "it's just not worth it."