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Comment by thesimpsons1022 | Hacker News Reader

maybe not. dominos makes money from the pizza it is selling not just the delivery fee. if they had to purely make profit from delivery it might be a similar price

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I'd imagine it comes down to multitasking - could Dominos successfully deliver pizza at the same time as other items? Each delivery fee would only have to make up the difference of the distance they were already traveling to the additional destination. Considering their coverage, and the fact that the drivers have central hubs and don't have to spend time idling, I think they could offer more competitive pricing while still profiting. They also have more freedom to prioritize pizza/packages as needed, where an Uber driver can't (reasonably) add a stop to their to route with a passenger in car.

Exactly this. The fact that dominoes makes money off the pizza sale just means they have a business stream to subsidize the cost of delivery to nearby locations.

Same reason Amazon can run Fresh. If you order groceries and your neighbor orders an Amazon package, just pocket the money that would've been paid to a carrier to deliver that box and get your Fresh driver to do so instead.

From quora:

In city areas it is possible to make up to 8 deliveries per hour.

In suburban areas it is possible to make up to 4 deliveries per hour.

In rural areas it is possible to make up to 2 deliveries per hour.

If you assume about $14/8 that's about $1.5 cost during prime times.

Also, a point-to-point delivery service requires an average of about 2 trips (pickup + dropoff) to complete a job. Pizza delivery requires an average of less than 2 trips to complete a job; the pickup trip gets spread across multiple orders.

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