Wont your plan be expensive. If the delivery guys choose their own costs and we all know restaurants have their own costs, then it will be expensive then the traditional food delivery methods with a fixed delivery costs. Once you work on the solution, please try to explain as to how it will disrupt the food delivery business since i as a consumer is pretty happy with the model that is going on!
The issues with the current model is that the intermediary takes a
fixed commission of around 20-30% on each transaction.
This has huge consequences for the revenue of the service providers: the restaurants and the couriers.
While as a consumer you might be happy with the current way this economy is done,
we think we should emphasize the
actual creators of value in this ecosystem: the restaurants and the couriers.
We don't believe prices would be more expensive than current platforms. Here is why:
- The lower commission rate will allow more freedom in the price set by the service providers. If by setting the price at 20 $ on BlockFood they get the same revenue as setting the price at 27$ on other platform (which corresponds to a scenario where we take a 5% commission, which is our maximum projection and our competitor 30% commission), they have some room to make it more attractive on BlockFood and still get a higher revenue.
- Secondly, when you buy a burger in your favorite restaurant, the price you pay has not been regulated by anyone. The actual price of a burger is the reflection of supply and demand, with a lot of other variables. If you live in a neighborhood where every one is ready to pay 100$ for a burger, then it's the right price for the burger.
But guess what, a 100$ burger would not sell.
That's how the system work in real life and it is how it's going to work on the BlockFood platform.
- The remuneration of the couriers is an important point as well.
Should they earn the same revenue whether it's raining, freezing or sunny and whether it's 1km, 5km or 25km that they have to travel?
This is not ours to decide.
The couriers will have the freedom to set their own rules and exactly as the price of a burger has to meet both ends of the deal, prices will regulate themselves.
And finally, as a consumer you will have the opportunity to choose a platform that is much
fairer to your service providers for
a similar price.
Why wouldn't you choose BlockFood then?
You have my attention now! I do know that restaurants have to pay 20 to 30 percent on every bill generated on their platform and they take part in the deliveries as well and pay a fixed amount to the courier for a particular delivery irrespective of the weather condition they might have to come in. What my major concern is, that model created is to ensure that the firm stays in profits and a part of the profits is used for giving discounts to the customers in terms of cashbacks or direct bill value deduction and even maintaining their customer service 24/7.
If you manage to ensure higher profits to the restaurant owners, how will blockfood make money?
The token will be one point on how blockfood will be valuable but how the employees of blockfood will be paid (fiat or blockfood tokens)?
And secondly will there be any use of blockfood tokens on the platform?
I'm glad we can reach some interesting points in our discussion. Thanks for this
BlockFood will have other sources of revenue:
- External advertisement on the platform
- Paid options for restaurants, such as product advertising, or mailing to customers.
- Donations to the OSE foundation
You have to understand something important about us.
We don't care about profit.
We care about creating a platform that is self-sufficient and that belongs to the people. Being profitable is a mean to achieve that.
All profits will be injected
into the project itself, instead of being redistributed as dividends. That's our philosophy. And that's how you can lower the commission rate while still being profitable: efficiency and frugality.
It's not about struggling, it's about creating a virtuous cycle. We will have at our disposal a certain amount of BlockFoodToken dedicated to the problematic your describe (~10% of total supply): discounts, customer service, sponsorship program, ... But also the revenue of BlockFood has to cover all cost, development, hosting, strategy, legal, growth, marketing, ... That's all of this that will be reflected into the dynamic commission rate.
During the first years of the project, most of the cost will be actually covered by the result of the token sale. We need to gain momentum before being able to rely completely on revenue sources. This is all described in our "Business model" section of our white paper:
https://whitepaper.blockfood.io/business-modelWe are also way more agile and efficient that our competitors, just as every startup is on some level. We don't have the same costs as them.
This economic model allows both
higher revenues for service providers and a sane
self-sufficient platform .
We believe it is the
best future for the sharing economy.
We have to make a distinction between BlockFood employees and service providers on the platform.
BlockFood employees (understand R&D team, marketing team, etc...) will be paid in a way that is legal where we work (probably FIAT).
Service providers (couriers and restaurants) will actually have the capability to choose whether they want to keep their payment in BFT (because all payments are done using BFT on the platform) or automatically exchange them for FIAT, with different possibilities (once a day, once a week, after reaching a certain amount, etc...).
The
BlockFoodToken has three main functions on the platform:
- it fuels the
smart contracts used to track the orders placed by customers.
- it is the
currency used on the platform.
- they are used to
vote for new features, strategic decisions and restaurant selection.
