Uber, Lyft, and DoorDash Have a Pretty Big Problem
I probably wasn't the only person who had to wait two hours for an Uber Eats order yesterday. Supply isn't keeping up with demand when it comes to drivers for Uber Technologies (NYSE: UBER), DoorDash (NYSE: DASH), and Lyft (NASDAQ: LYFT), and it's a problem that could upend the ridesharing and third-party restaurant delivery markets if it's not corrected.
Demand outstripping supply is often seen as a good problem to have. If I want to order a Tesla (NASDAQ: TSLA) Model 3, the website tells me I have to wait eight to 12 weeks from today. If I want to work up a sweat on a new Peloton (NASDAQ: PTON) stationary bike, I'm going to have to hold off for as long as three weeks. This is an inconvenience that comes with aspirational brands, and it probably adds to their prestige.
It's a different story if I'm hungry. It's a very different story if I'm waiting on the sidewalk for a ride. Making matters worse, many ride-sharing and takeout-delivering apps are resorting to the same infuriating tactics that airlines have used for years by not being transparent about how long delays are going to be. If the industry doesn't remedy the problem, it may not be long before supply starts to outstrip demand.
Source Fool.com