Munchery Shuts Down
On demand food delivery has several major problems that were all very predictable<p>1) you can&#x27;t predict how much food to make. On demand food companies were throwing away 30% of the food they made every night<p>drivers cost ~$25 an hour, and only do ~6 drop offs.<p>2) lots of idle driver time<p>3) routes can&#x27;t be optimized (or only minor optimizations in real-time)<p>4) on average they are only dropping off 1.3 meals per delivery, making each meal very expensive to deliver<p>I helped start <a href="http:&#x2F;&#x2F;Thistle.co" rel="nofollow">http:&#x2F;&#x2F;Thistle.co</a> (only in California) to fix these problems; people order their meals for the week (doesn&#x27;t work for everyone obviously) and we drop off 3x&#x2F;week, with optimal routes and many more meals per dropoff. The company has been really capital efficient in doing so, hardly raising any money but doing 10s of millions in revenues.