{"id":12500,"date":"2022-05-24T07:18:27","date_gmt":"2022-05-24T12:18:27","guid":{"rendered":"https:\/\/reformingretail.com\/?p=12500"},"modified":"2022-05-24T07:19:19","modified_gmt":"2022-05-24T12:19:19","slug":"doordash-capital-bbot-acquistion-just-a-layover-to-full-restaurant-pos-offering","status":"publish","type":"post","link":"https:\/\/reformingretail.com\/index.php\/2022\/05\/24\/doordash-capital-bbot-acquistion-just-a-layover-to-full-restaurant-pos-offering\/","title":{"rendered":"DoorDash Capital, Bbot Acquisition Just A Layover to Full Restaurant POS Offering"},"content":{"rendered":"\n

As DoorDash adds capital lending to its product offering<\/a>, we think this is just a collision course with POS.<\/p>\n\n\n\n

DoorDash needs to grow pretty dramatically to satiate investors, and there are really three vectors:<\/p>\n\n\n\n

  1. Adjacent verticals, like cstore, grocery, and retail<\/li>
  2. Verticalization of food production via ghost kitchens, taking 100% of the food spend as opposed to 30% (or whatever their average is)<\/li>
  3. ARPU expansion with new product offering on their existing base<\/li><\/ol>\n\n\n\n

    Clearly their lending efforts fall into that third bucket, but we have to ask: why not just build a POS at this point?<\/p>\n\n\n\n

    How about you start with acquiring Bbot<\/a>, a QR ordering company that was already on its way to being a POS.<\/p>\n\n\n\n

    For those of you saying building a POS from a QR ordering platform it’s a heavy lift, hear us out.<\/p>\n\n\n\n

    A POS is basically just a KDS (kitchen display system) anymore – everything else is headless commerce and an API call. <\/p>\n\n\n\n

    As customer ordering flows move more off-prem, the way transactions route has changed, and QR ordering companies like GoTab<\/a> have continued with the feature accretion of traditional POS and are, in effect, offering a POS replacement.<\/p>\n\n\n\n

    It might not satiate every segment of the market, but neither did Toast when they started.<\/p>\n\n\n\n

    To some extent this is the bet Olo is making: can we build enough of the necessary features for in-store ordering that traditional operators will recognize that half of traditional POS is bloat as customer ordering nodes change?<\/p>\n\n\n\n

    Anyhow, don’t discount DoorDash’s aspirations to own more of the restaurants stack, and POS would be the common denominator needed to do that.<\/p>\n\n\n\n

    We’d question how much support infrastructure DoorDash wants to build, but to find top line growth they might not have many other choices.<\/p>\n