And don't forget: they're losing money at those prices, too. This is basically a bunch of venture capitalists funding the destruction of small business. Grubhub spent $27 million in advertising in the U.S. between Feb. 2 and April 27, up 40% from the previous year’s period, according to industry tracking firm Kantar. DoorDash boosted advertising spending by 35%, while Postmates increased ad spending by 82%.Grubhub said it is barely breaking even as it funnels most of its profit into safety equipment for drivers and incentives to keep customers ordering. The Chicago-based company said it expects earnings after expenses of $5 million during its current quarter, down 90% from the same period last year.
I want to see all of these services die. But, if people are supporting them because they don’t care or don’t know better, I don’t know what to do about that aside from continuing to live in my own little bubble.