Making delivery work is darn difficult: even when everything’s going well with the customers and the kitchens, you still have to manage hundreds of thousands of very loosely managed workers. With unaligned incentives, why should a courier make sure an order is right, or wait around for a customer that’s running late, or even verify that a would-be scammer actually did receive their order?

One potential solution to this problem would be to convert 3PDs to a delivery service partner (DSP) model, similar to the one used by Amazon or FedEx. That leads to local businesses owning their routes in different cities, keeping management closer to customers and workers. We’ve actually just seen DoorDash start exploring this concept, as it launched its Local Service Partner program in Austin and Fresno.

This week I sat down with First Delivery’s CEO Andrew Nakkache to game out how this system might work at scale, and to learn more about how he’s built his own delivery software business.

This episode brought to you by PizzaBox AI.

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