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Service industries are all low-margin.

You introduce a middleman, and it eats into the already thin margin. And it's not just one middleman. It's two: the app and the delivery guy.

The average profit margin for a restaurant is 3-5%. Then you add the app that needs money. Then you add the delivery which needs money. The only way to keep the original restaurant price is to heavily subsidize the app and the delivery.



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