covering the week's top textbooks like
Linux bias the owner of a pizza
restaurant in the US has discovered the
the door - delivery app has been selling
his food cheaper than he does while
still paying him full price for orders a
pizza for vici charged $24 was being
advertised for 16 on door - and when he
secretly ordered it himself the app paid
his restaurant the full twenty four
dollars while charging him sixteen so he
ordered ten pizzas paid $160 and had
them delivered to a friend's house the
restaurant was then paid $240 for the
order by door - in further tests the
restaurant prepared his friends order by
boxing up the pizza base without any
toppings maximizing the profit from the
mismatched prices and it worked
content strategist Rand John Roy who is
a friend of the pizzeria owner blogged
about it he said I was genuinely curious
if doordash would catch on but they
didn't
the curiosity stemmed from the fact that
they had not asked to be put on the app
so it didn't make sense that the company
would be selling their pizza at a loss
they later found out it was part of a
cunning strategy to build customer
demand and then use that demand to get
the restaurant to sign up mr. Roy says
they have a test period where they
scrape the restaurants website and don't
charge any fees to anyone so they can
ideally go to the restaurant with a
positive order data to then get the
restaurant signed on to the platform mr.
Roy is of the opinion that it's bad
business he says you have insanely large
pools of capital creating an incredibly
inefficient money losing business model
doordash is backed by investment giants
Softbank
which last week posted a record-breaking
loss of nearly 13 billion
[Music]