Start-ups such as Postmates aren't just delivering food, they're opening kitchens too
SAN FRANCISCO - Last fall, the delivery start-up Postmates approached Los Angeles noodle house Tatsu Ramen with an offer: The start-up would rent a commissary kitchen just west of downtown in an area with a dearth of ramen restaurants. It would supply all the equipment needed to make steaming bowls of ramen. And Tatsu could use it, with no upfront charge, to prepare dishes for delivery.
The catch? Tatsu could use the kitchen only to prep orders for Postmates, and Postmates would take a larger commission from each sale.
"It was a no-brainer for us," said William Khoe, the owner of Tatsu Ramen, which has restaurants in Fairfax and the Westside. "It was a low investment on our end, and we could test the market fairly quickly."
San Francisco Bay Area delivery apps such as Postmates, UberEats, DoorDash and Caviar used to only be middlemen
