The 'DoorDash Problem' is here
Real talk: we all know delivery apps like DoorDash and Uber Eats are total middle-men. You’re paying for the convenience, but those 15% to 30% commission fees mean restaurants hike up menu prices to stay afloat. Enter Bites, a pre-seed startup with just 300 Bay Area restaurants that’s lowkey trying to break that model entirely.
Bites is "AI-native," meaning you can order food directly through ChatGPT instead of an app. By cutting out the middle-man, they claim they can keep prices lower—the company charges a flat $1 fee per order. One restaurant owner, Jay Jayaraman, who uses Bites for 65% of his orders, says his profit margins are finally looking like a W compared to his DoorDash days.
Why it's getting spicy
DoorDash isn't just sitting back. In August, they sent a sketchy-sounding email to restaurants warning that being listed on Bites without consent could be illegal. Bites founder and CEO Bala Subramaniam noted they heard from 14 restaurants who received the warning, but interestingly, some restaurants wanted to join after finding out Bites existed. The plot thickens because Bites co-founder Matt Maloney previously co-founded Grubhub, so he definitely knows where the bodies are buried.
Why it matters
This isn't just about pizza; it's about the future of the internet. Big tech companies like Amazon and Uber thrive because they control the interface where you spend money—and the ads they show you while you're there. If everyone starts using "AI agents" to order food or shop, those companies lose their direct link to you. It's giving "the end of the app economy" energy. Amazon is already playing defense, blocking AI agents from browsing its site to protect its multi-billion dollar ad business. If Bites can prove that AI agents are a better, cheaper way to eat, DoorDash might have a major existential crisis on its hands.
