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Please explain why people are collectively spending billions of dollars on these services if they provide nearly no benefit to anyone.


VC funding subsidizing the entry of these firms into the market. Few competitors contributing to pricing power among these firms. Network effects arising from coordinating the multi-sided market of drivers, restaurants, and consumers.

Early subsidization has led to the position of these firms as middlemen that can extract something akin to rent from their dominant market position. The vig that middlemen collect isn’t a benefit to consumers but something they pay for with every transaction (price mark ups, service fees, narrowed choices).

No, profit isn’t a sign of consumer benefit. Often it’s quite the opposite actually.


I said "nearly," not no benefit whatsoever.

Personally speaking, I use it because it allows me to be lazy. Every time I do I say next time I wont.




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