DoorDash lays off 1,250 employees

  1. The Silicon Valley / tech model for the recent past has been to beg, borrow and steal as much venture capital as humanly possible, leverage the hell out of those assets once VC dries up, and get to a cash flow with many 0s behind a non-0 number. At that point, you should have enough to pay minimum debt payments while taking on more debt, using more valuable business shares as collateral as the company grows.

  2. Yes, unprofitable companies like DoorDash rely on VC funding that is drying up. On top of that, rising interest rates makes it more expensive to service their debts. So they don't see a runway available to them to keep growing.

  3. Think over hiring immediately during and after covid to keep up with new demand has finally had the other shoe drop

  4. Media always focuses on big tech companies because they're supposedly innovating the future. There's no breakdown of what kind of jobs are being cut, only approx numbers. Available tech jobs are still being posted like crazy online.

  5. My experience working as a dev for a large corporation seems to be vastly different then silicone valley.

  6. They've all stopped subsidizing your orders or rides in favor of attempting to make profit... And in the case of doordash I'd imagine they were always perilously close to the "should I go get it or have it delivered?" equation tipping out of their favor.

  7. Tech space is evolving. For awhile it was all about user acquisitions and worrying about monetization of those users in the future.

  8. It's more of a media focus. There are something like 30k layoffs across these headlines vs over 2 million open positions.

  9. Tech had a huge boom during the pandemic. It's over. Rest of tb3 economy seems to be steaming along as people reallocat3 their spending.

  10. Food delivery is one of the first things we stopped in cutting back on expenses since inflation is so bad. Has to be the same for many.

  11. This is a result of a massive blow up during the pandemic, and thinning out the numbers back to pre-growth levels. Same as the rest of tech that are experiencing layoffs. I know plenty of network security tech companies that are still hurting for qualified personnel.

  12. These companies are not “tech” in the sense they are developing new technologies like batteries or robots. They are social apps that connect providers with consumers. The problem is you can’t provide that service without high costs that have to be paid. Huge initial investments allowed subsidized introductory pricing to attract business but that had to end. The companies hired as if the growth would never end but the pandemic and increased costs are now causing these layoffs.

  13. I think big tech is facing a much needed correction spurred on by the drying up of years of super cheap money. I don't think tech is screwed but many of these big tech companies just hired way too many folks.

  14. Tech, especially growth companies, ramped up hiring during the pandemic and now a lot of them are needing to lay people off. It was a good market before COVID, and things got insane around a year ago, hiring became next to impossible for a lot of companies, now it’s coming back to normal.

  15. IMO what we're currently seeing with layoffs and hiring freezes is more related to the massive growth we saw during the pandemic. The growth was not sustainable and as a response companies are having to scale back.

  16. Sounds like not too many people are willing to pay $25-30 for a $10 burger to be delivered. Their fees are bullshit and workers get shafted on proper tips. The entire gig environment is bullshit.

  17. I'm amazed at the number of people who use Doordash to order pizza. Especially when the pizza place already has delivery as an option. I went in for a carry out order recently, and there were no less than 4 Doordash drivers standing in the lobby, waiting for orders.

  18. Exactly why I stopped using Doordash. I couldn’t justify paying $40 for $15 worth of food. I imagine a lot of people have started to wake up and realize what a joke Doordash is.

  19. The listed fees aren't even the real killers. The markup on food is outrageous. You are often paying 40-80% more per item. Just go to McDonalds and look at prices then look at the same prices on UberEATS.

  20. Triple the usual cost for a damp cheeseburger and fries that has been steaming in the container for the last 40 minutes.

  21. I swear I'm pretty sure that these days office orders are responsible for at least half of their business... I can't remember the last time that we ordered it at home but work is a different story. We rarely have much time so either get a group throwing in to order where the fees are split up or we order with clients and put it on the company card probably 3 days a week at work. And it's not just my office either. At a couple dozen clients offices I'd say there is usually a 50/50 or higher chance that if you're there around lunch time you can find a door dash order to get in on.

  22. couldn't be happier this whole delivery thing is happening. they can't hire workers but people will go slave for them for $40 a night.

  23. Speaking as a former driver, the driver takes all the risk, and sometimes the tips are trash, even if I got a 8 dollar tip if I get into a accident delivering a burger it isn't worth it.

  24. I deliver for an actual restaurant with no delivery fee and I will still get $0 to $3 on deliveries up to $100. I can't imagine working for door dash and getting shafted a tip from someone who was willing to pay the extra $20 for just getting their food delivered.

  25. Most people don’t realize restaurants have the option to use their own drivers to make deliveries with these delivery apps at a fraction of the cost, but they don’t because they’d have to hire an employee, so they use the apps. I feel like that’s something important that doesn’t get talked about; they can use their own drivers if they want.

  26. This is exactly why I thought the food delivery model would fail in the US. I've lived in China for a few years before COVID, and the majority of the stores available on eleme (the #1 food delivery app) had free delivery, or were $1-2. And the food was sometimes the same price as it is in-store. The significantly higher average wage in the US, coupled with the much more sparse population density (longer average delivery routes), as well as the tipping culture made me believe the food delivery services would never gain traction, even during lockdown. I severely underestimated the willingness of people here to pay for the price of convenience.

  27. Doordash will stop refunding incorrect orders after so many screw ups. It was really annoying ordering food, getting something totally different than what you wanted, and then being told you will not be getting a refund for the incorrect item.

  28. Lol literally no one understands the stock market here. DD is a growth stock. Look at all growth stocks since the Fed started hiking rates.

  29. I imagine high interest rates probably make it a bad time to be a company that's relying on borrowed money because it's not turning a profit yet

  30. Yep. “Disruptive” tech companies have to offer unbelievable (and unprofitable) value in order to take out the competition and rely on cheap money and VC spending in order to stay afloat. Well the gravy train stopped. If you’re not profitable now you gotta figure out how to be quick. For a lot of companies that means increasing revenue through raising prices and lowering costs by trimming salaries.

  31. This is exactly it. Plus, many tech companies over-hired when money was cheap and any / all expansion seemed possible. Now that money is expensive again and they can’t afford if, they have to reduce costs. Easiest way to fix is cutting out where you went too far in the boom.

  32. Aren't making a profit and have no expectation to make a profit. But, hey. It's an Internet gig economy thing. That means it is worth something, right? It is buzzword compliant.

  33. Thank god one person here actually understands this. People shitting on the gig economy here whole Uber is doing fine and the fed is hiking rates.

  34. Thats what my parents have been saying, my stepdad had to start delivering for a flower shop because they were starting to be lucky earning more than $250 for 40 hours "clocked in". Thankfully his retirement has officially started so they can cut DD

  35. We used to order DD two or thee times a week for stuff, but we decided to lose weight; now it’s maybe twice a month. I know a lot of people who’ve cut their deliveries down drastically over the last 6 months because they were spending so much on it.

  36. I was able to solely use DoorDash as my only source of income. I can no longer do that. I DoorDash, Uber and instacart. DoorDash is dead.

  37. Sorry app, app workers, and app employees, but if you think its worth $30 to have a sandwich delivered you're insane.

  38. Wow 17 weeks severance! I have been laid off 3 times, most I got was pay for the rest of the day.

  39. I hear you! I’m looking at all these tech severance packages with my jaw on the floor. I too have been laid off 3 times. Ive gotten notice that it would happen ahead of time before, but no one has written be a check once I was out the door.

  40. I would definitely miss Uber and Lyft if they died. Getting a cab in the Bay area was a shit show before they came along.

  41. Those are not all tech workers, & There are 8 million software engineers in the US, that 142,000 is just normal yearly churn, you’d expect it in any given year.

  42. Ironically Chipotle natively offers delivery through their own app, often for a low rate, and only a small upcharge on the price of food. Early in the pandemic when they were trying to drive adoption, there was no delivery fee.

  43. True, but that's the price to remain unprofitable, imagine how much it'd cost to keep the business afloat? When you have to pay drivers, engineers, HR, and executives it all adds up really fast.

  44. Sucks for the employees, but these gig economy delivery companies are parasites - they're killing off traditional delivery by doing it worse, but below cost, because they can burn VC money.

  45. Door dash is the worst. I’m surprised anyone uses it. I made a new account for a promo for $5-10 off and the order was racked with fees. An $8 order (mind you where the promo code discount has already been added) costing $30 with 15% tip.

  46. They probably have stock-based comp and trading plans on a 10b5-1 that have selling intervals pre-set, but they aren’t meeting any internal metrics that would issue bonus attainment or kickers for SBC.

  47. what? pretty sure all they do is it pick up your food and deliver it. when i order something theres usually a sticker sealing the bag so you would know if they tampered with your food.

  48. Lol why? What’s the difference? The person cooking the food is not the same person that packs it up which is also not the same person that delivers from the restaurant.

  49. I seriously hope this means restaurants will stop up charging 30% to cover their door dash fees. Just let it die.

  50. For a lot of restaurants there's no choice. Doordash, Ubereats, Skip, all those apps take a chunk around 30% of any sale.

  51. It's a luxury to have the meals delivered to you. You are paying for that freedom. Maybe order from Meals on Wheels?

  52. People think I'm crazy but I've never used any food delivery apps. I grew up in a house that always just went and picked food up. Meanwhile, my neighbors will eat pizza they don't like just because they deliver.

  53. Meanwhile the founder of DoorDash has been pissing away hundreds of thousands of dollars in high stakes poker games all year.

  54. When you’re laying off this many people, leadership should also be laid off, with a severance equal to the severance of lowest paid employee. It’s leadership that failed, not the workforce.

  55. I can cook my own food. I don't have a lot but I can't imagine this model lasting in anything but the best of times.

  56. Hmm…well I just ordered from DoorDash…with the fees they add on maybe they can keep one of the employees?

  57. I looked up a McDonald's order for pickup which would cost me $16.65. If I had the same meal delivered by DoorDash it was 26.61.

  58. Right, a driver has to spend their time picking up your food and has to have a vehicle that they pay for fuel and maintenance to bring it to you. lets do some math

  59. To be fair, even Jimmy John's was almost $5 extra per sandwich for delivery. )I suppose that includes tip vs going to the store) And they employ the delivery drivers directly.

  60. Inflation has just killed everything, I used to get food delivered once a week on skip the dishes and I have gone from 4 a month to maybe 1 every two months if that

  61. Fuck DoorDash. Their DashPass bullshit is a scam. You pay a monthly fee for free delivery. But, now you don’t get the free delivery unless you pay with a credit card. And on top of that, they have also jacked their delivery fees up a few dollars. They suck!

  62. I tried to cancel my DashPass a few weeks ago, but there wasn’t an option on the app or website for me to do so. I’m not sure if that’s normal or if there was an issue on my end. Either way, I called DoorDash, was on hold for about 30 minutes, and finally got them to cancel it. Two days later I got charged for it again, so I called them back to ask what happened and they said they had no record of a support call or a DashPass cancellation, so I had to have them cancel it again. Then, I had to practically beg for the charge to be refunded because they said I needed to cancel before that charge even though I had and they had fucked it up. Fuck doordash.

  63. Doordash: where laziness turns your $12 meal into $35, it's cold when you get it, the driver forgot part of your order, and Doordash offers you $1.50 in a refund.

  64. Earlier this year grubhub gave amazon prime members a year of their premium service. It still doesn't take the stink off the 20-30% markup I'm seeing on items. Seeing the prices and knowing the real prices really helps me crack open a can of soup or heat up frozen pizza instead.

  65. I got a toaster oven that makes fries with air. I'll pass. Time to buy some frozen foods or cook at home.

  66. My wife used them or Uber eats maybe with some friends at work and after she found out how much extra it would actually cost h told me she’d never use it again and thinks it’s crazy people will pay a premium for convenience like that

  67. Yes I order a meal that is 10 on the menu and after DD magic I’m paying 20.68. I just go pick up the meal now and save 10.68

  68. If they bring back the 2 $5 discounts per month when you use Mastercard I would go back to them. Their prices/fees increased and they stopped giving incentives for DashPass. I'll just drive to the restaurant

  69. Because they have pre-built, online infrastructure for online delivery of food. Most local restaurants by me either don't have a website or one that just links to some DD/GH like service if you try to order online.

  70. I mean, if ordering from them didn't double the cost of the food and add a tip charge in there maybe more people would use it?

  71. Look, I’ve been in tech for a while. In no world does a company that does what DoorDash does, need 8600 corporate employees.

  72. I thought Twitter losing half its employees and immediately imploding would I end this ignorant meme statement.

  73. Well, we have to look at the salaries of the CEO, C-suite & payouts to shareholders. We know the losses weren’t coming from taking care of employees.

  74. I still can't believe how many of my dumb fuck poor friends are using this! Even once a month, is too much you broke fucks!

  75. Only use I have for DD now is finding new restaurants in my area. Good for out of my way, or hole in the wall places.

  76. Honestly why do people use this service? In what world would anyone be ok with paying twice as much for a meal? Can people not cook or something?

  77. For the most part, doordash was always just an overpriced luxury for lazy people. I used the service twice during the early pandemic and felt pretty disgusting doing so.

  78. Small note, the drivers are not considered employees. They're classified as gig workers here in the US which get zero benefits. The employees they refer to here are doordash people who manage everything else behind the scenes.

  79. Doordash once contacted my boss about delivery services through their app. They wanted 30% of the total bill. My boss told them to get fucked

  80. DoorDash fucking sucks! My company provides gift cards for our weekly meetings and the fees are almost more than the meal. 1/2 the time I don’t receive my drink, and the other half it’s always cold.

  81. First, they manipulated elections so they better could exploit their employees. Now they’re just firing everyone. So much for job creation.

  82. Their “employees” in the context of this article is just a tiny fraction of their actual employees, who can’t make ends meet and quit in droves all the time.

  83. Good riddance. I did delivery for them and they were awful, sure occasionally their was a delivery that was very worth my time/use of gas, mileage and risk, but most were scammy. Most of the real wages depended on a healthy tip. Also, I think a lot of restaurants got screwed in little ways. Just my take, but I try to only use restaurant delivery when they have their own driver... PS-Uber eats sucks too.

  84. If the layoffs are towards the corporate overhead meaning more for the drivers that's fine by me. That job is a liability nightmare as is especially in high traffic areas.

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