Last note on the credit situation....let's talk about 18-39 year olds. And to put it in perspective, DoorDash is the best way to deliver the message....I got jokes today ?? . First, you can see below just how different debt is distributed across this age cohort. With mortgages a significantly smaller portion, and student loans being a much larger one, Auto and Credit are a much larger impact (mostly for 18-29). The problem is that these age cohorts are currently running at ~10% 90-day delinquency on Credit Cards and 5%/3.5% respectively for Auto. Both are at or higher than 2008/2009...just as a benchmark. So why DoorDash? It's all about the consumer composition. Before moving on, this has nothing to do with DoorDash's performance...that company has been doing ALL the right things. Its expansion into retail, and dominance in restaurant delivery post-covid, has been really impressive. No doubt they've won the delivery race. What connects DoorDash to these delinquency rates is the risk exposure of its core consumer. 18-40 year olds makes up roughly 1/3 of the US population....reports put that age group at roughly 50% of the user base. That's households alone, not spend, so imagine what that looks like. That means DoorDash users are 1.6x more likely to be among this cohort going into double digits delinquency rates for credit cards. Sure, you can use a debit card to order, but we have NEVER experienced a situation where card-driven purchasing, via a mobile platform, is working against delinquencies like this. It isn't just DoorDash, its any brand/retailer that drastically over-indexes to this age cohort. Luckily platforms like DoorDash, and almost every online retailer, has some form of buy now pay later ?? . What could happen? This is an example of an air pocket in the market. One is a bump, but the more pockets the more risk for a more intense drop. Further...imagine what happens if this age group has been driving a lot of the consumption growth overall. What does that do to the macro numbers? Some things to think about... This closes out my week of yelling from my virtual front porch....will give you a break, but keep an eye on next Friday's PCE release. #consumerbehavior #retail
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Something to think about with your morning coffee ? The average delivery service customer is spending $407 a month in 2023, up from $157 a month in 2021, according to a recent survey from LendingTree. Four-fifths of consumers reported using on-demand delivery in the past year. Millennials spent the most, $575 a month. In the LendingTree survey, 82% of consumers said they used on-demand delivery over the past year. Online food delivery, alone, generated $160 billion in revenue in 2022. That figure is projected to rise to $484 billion by 2032. However, delivery fees can cost more than food. Choosing delivery over a trip to the store triggers delivery fees, service fees and tips. Together, they make up about 36% of food delivery costs and this creates an opportunity to disrupt the home delivery service for food, medicine, pet food and consumer goods in 2024. The way Uber disrupted the thinking of consumers to pick up a stranger in their car, Airbnb disrupted thoughts about sharing a room in their home with a stranger and Turo disrupted the thinking of lending your personal vehicle to a stranger, you will see a consumer disruptive methodology on how home and office delivery functions. #homedelivery #lendingtree ##ubereats #grubhub #instacart #doordash #amazon #turo #uber #airbnb
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CX & Mobile Experience Researcher | Providing data driven insights for marketers. | ?? Inspiring Women in CX Rising Star & Business of Apps App Leader ??
???????? Delivery apps at the center of local economics ???????? New regulations in Seattle and New York City ensure that app based delivery drivers receive $18-19 hourly wages. The regulation is a win for workers rights, but resulting changes from the app companies to fee and pricing policies is estimated to result in losses of $40M and $110M for local DoorDash merchants in Seattle and NYC. Why are the wage minimums making such an impact on merchant earnings? To cover the wage minimums, app companies raised their fees to individual customers and to merchants, which in turn significantly increased delivery prices. Higher prices for the customer have impacted order frequency. Fewer orders = few drivers = longer wait times = poor food quality = unhappy customers. Apptopia estimates that MAU for DoorDash and Grubhub have not seen any dramatic declines, but Uber Eats MAU dropped by ~5M since the start of the year.? _______ Interested in learning more about #mobileexperience? Follow me for weekly insights. #deliveryapps #workersrights #localbusinesses #regulations #hourlywages #economics #DoorDash #Grubhub #UberEats #customerexperience
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Financial Wealth Associate | The Monument Square Group of Oppenheimer & Co. Inc. | Organize, Analyze, Guide & Empower
Day 2 of our new Spending Plan for #FinancialLiteracyMonth We made our list of goals yesterday. But how do we go from point A to point B? If you already find that you have money left after every paycheck, then start directing your leftover amounts to a savings account specific to your first goal. But what if you don't have the leftover money? This is where the real work can begin. Take a look over your bank and/or credit card statements. See what all your paychecks are being spent on and make some decisions. Are you really using all of those subscription and streaming services? Have you been eating out more than you realized? Using DoorDash for convenience and not necessity (not-so-secret secret - you may be able to save money just by, gasp, calling the restaurant and ordering delivery instead of using the app)? I get it; life is expensive, especially right now. But here is one #protip, use grocery pickup instead of in-store shopping. You will see exactly how much you are spending before being surprised at the register and it will also help prevent those impulse purchases. #womenandmoney #womenandinvesting #monumentsquaregroup #saving #investing #goaldigger
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DoorDash Respectfully, may I ask: Why does it seem as if unscheduled Dashers, who are allowed to "Dash Now" if they're new/take offers that cost a Dasher money while #DoorDash earns all delivery fees, get to enjoy top priority for receiving orders? Those of us who must schedule because we're not new, and won't take orders that cost us money while you profit, schedule blocks of time and end up sitting around, doing nothing. How is it that you seem to avoid giving us orders to give to the unscheduled, who can "Dash Now" "even when it's slow" which is the opposite of what Grubhub does, where I get last priority as an unscheduled driver? My 2022 earnings were much higher before the over-hiring that by 2023, started this regretful trend. My current acceptance rate hovers around 60 percent, so it's not as if I'm overly particular in deciding which orders to accept. National Labor Relations Board California Civil Rights Department California Department of Justice
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The order acceptance rate and preferred time of day to work can vary greatly between gig-workers. DoorDash shared interesting data on the average 'Dasher,' which are those who spend about 4 hours/week on delivery. The chart below shows the weekly activity for 10 random Dashers who averaged 4 hours/week on delivery over a quarter. Red bars indicate total time spent delivering in a given week. Pink bars above show the total inactive time they spent on the app. The top text displays how many offers each Dasher accepted in aggregate over the quarter. Most Dashers accept the offers made to them based on their needs and preferences in a given week, and their decision to accept or reject appears to influence the total inactive time they spend on the app. The 34 y.o. Dasher in Colorado accepting just 7% of their offers incurs much more inactive time than the 21 y.o. Dasher in Ohio accepting 49% of their offers. Source: DoorDash, Owning their Time: How Dashers Weave Delivering into Their Everyday Lives #lastmiledelivery
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112x Failure, 3x Founder, 2x dog parent, 1x daily pooper. Just a regular guy in an increasingly frightening world.
DoorDash tried doing a noble thing by urging frugal users to tip. They caught some heat for that, and rightfully so considering how much money they make off the backs of businesses. Like, just pay drivers better, people. What they did next is kind of infuriating. They've instituted a policy that drivers must complete 90% of orders in order to stay active in the app. 40% or so of orders don't tip, so they're forcing drivers to accept low-paying orders or else they won't get any orders AT ALL. Yikes. Is this a boneheaded move, or what? Drivers who are desperate for cash will end up losing out big time. Or they'll move to other platforms. #doordash #GigEconomy
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If you have the urge to splurge, update your budget spreadsheet. It’s a bitch slap of reality. Allergic to spreadsheets? Look at your budgeting app, online bank account balance, or your current credit card balance. Many banks provide a pie chart that highlights all the Amazon purchases and DoorDash deliveries. My foray into my expenses reminded me how much I had just spent on four BF Goodrich tires to prevent hydroplaning during SoCal’s next “atmospheric river.” My boredom with my wardrobe miraculously disappeared. (Yes, my car needs washed because of our most recent rain and the yellow pollen.) #moneymindset #money #change #takechargeofyourfinances #financialresolutions #financialplanning?
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Today, I experienced firsthand why Instacart needs to rethink how it treats its shoppers. I accepted a batch at Instacart and had to cancel because I just couldn’t move the cart anymore. When I first noticed Instacart among the list of startups, they excited me with their idea of having groceries delivered fast by normal people—like Uber for groceries, which sounded fun. It was also a great college/in-between-jobs hustle that seemed engaging and active. However, over time, I started to observe how the platform works and noticed some issues that upset me as a shopper. For example, today I had to cancel a $40 order, and it wasn't my fault. The order contained 61 items from Costco, which initially seemed ok. But an hour later I realized the mistake (see photo under the post). I contacted customer service, and they canceled the order, causing my cancellation rate to increase to 1%. (Why am I affected?) If it reaches 15%, you risk deactivation. The representative explained that I wouldn’t be reimbursed for the time and effort lost, despite being very apologetic. Policy prohibits it. Well, self-employed life, right? I accepted the terms and conditions, so why complain? If I were advocating for both customers and shoppers, who provide the vital service that holds the business together, here’s what I would do: 1. Prioritize Shoppers: Treat shoppers as dedicated employees, not just self-employed contractors. Taking care of shoppers will benefit the company in the long run, similar to how Costco treats its employees. That’s also why everyone loves Costco and wants to support it. 2. Provide Company Vehicles: Ban the use of personal cars for deliveries. Instead, provide company SUVs or vans, and require cleanliness and sanitation checks every shift. I saw on Reddit customers complain about groceries being delivered and smelling like smoke. Food delivery should be taken seriously. If I would let people use their cars, I would require to keep it clean and pay for this business expense myself. 3. Set Adequate Order Limits: Create realistic weight and quantity limits for orders to prevent overwhelming shoppers. 4. Offer a Living Wage: Pay shoppers a living wage. They shouldn’t have to pretend to be business owners while earning below minimum wage or nothing at all. I believe that in America—the best country in the world—this is possible. Fidji Simo, hopefully you will see and empathize with me, by creating positive changes! I’m a software QA engineer and love talking about user advocacy, issues and UX/UI design. If you love my post, please consider following me???? #Instacart #GigEconomy #EmployeeAdvocacy #CustomerService #FoodDelivery #LivingWage #SupportShoppers #InstacartShoppers #GroceryDelivery #WorkplaceFairness #StartUps #YCombinator Y Combinator
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