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> Amazon correctly identified the opportunity but failed in the execution

Everyone failed in execution because nobody has done it profitably yet. Maybe the opportunity doesn't actually exist?



From elsewhere in this thread:

> In the first 3 quarters of 2020, Doordash has $131 million loss on $1.9 billion revenue

If a startup starting from 0 can pull that off, Amazon should have been able to do (even) better with their customer base and logistics know-how + infrastructure.


How is losing money a positive? Amazon should have been able to lose even more given more of an investment? Amazon realized its bound to be a big loser and left it.


Even the most conservative investors will look at a loss as a percentage of revenue and not in isolation. Decades of business experience have shown that a low loss ratio in a fast growing business is a good investment opportunity.


I don't see how Amazon's logistics and infrastructure translate to restaurant delivery. They can't stock orders in their warehouses.


Amazon has built a delivery network that is almost on par with DHL and others. I would say that's not only a pretty good starting point to get involved in restaurant delivery, but would also increase the utilization of the delivery vehicles (think Uber Eats).


Amazon's delivery network is built around pre-optimized multi-hour routes. Like DHL and others it's completely unsuited for restaurant delivery.




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