a16z Podcast The Delivery-Optimized Future of Food
Mar 25, 2020
Andrew Chen, a general partner at Andreessen Horowitz, joins Virtual Kitchen Co. CEO Ken Chong and Snackpass CEO Kevin Tan to dissect the tech-driven transformation in food delivery. They explore how online ordering is reshaping dining traditions and enabling a more social take-out experience. The conversation dives into the rise of virtual kitchens and the challenges restaurants face adapting to data-driven consumer demands. They also touch on the potential impact of robotics on the food industry, hinting at a future where kitchens might become a relic.
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Tech-Driven Food Habits
- Millennials and Gen Z, growing up with smartphones and on-demand services, drive the demand for food delivery.
- This generation expects the same convenience and choice in food as they experience in other areas of life.
New Infrastructure for Delivery
- Food delivery requires a new infrastructure to support its increasing volume.
- Virtual kitchens aim to provide this infrastructure, similar to Amazon's role in retail.
Delivery Costs as Barrier
- The cost of food delivery is a major barrier to its wider adoption, not restaurant operating costs.
- Obfuscated costs like delivery fees, service fees, and markups make it hard for consumers to justify daily delivery.