DoorDash: AI browsers pose a big threat to Amazon

Amazon’s lawsuit against Perplexity has opened up a major conflict in the AI ​​browser landscape. What’s being referred to as the “DoorDash problem.” This issue is poised to define the next battle in AI and could fundamentally transform not only how you order a sandwich, but how the entire internet economy works.

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So what is the DoorDash problem? Essentially, it occurs when an AI interface mediates between a service provider, like DoorDash, and the consumer, who can use an AI to order a sandwich online instead of using apps and websites directly.

This scenario would eliminate elements like user reviews, ads, loyalty programs, and partnerships, as AI browsers don’t deal with these aspects. Consequently, DoorDash would simply become a sandwich delivery provider, losing the additional revenue generated when real people interact with their app or website.

The DoorDash problem isn’t unique to DoorDash. It serves as an example because sandwich delivery humorously illustrates the structure of the global economy. The question of “who owns the customer?” is a major concern for all the service companies that emerged during what could be called the App Store era: Uber, Lyft, Airbnb, Taskrabbit, Zocdoc, and others.

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The complex sandwich tradition

Historically, if you wanted to order a sandwich from your favorite local store, you would go there in person to order at the counter or call the store directly. This face-to-face interaction with another person was representative of the economy of that time, except for a few mail-order catalogs and QVC.

The dot-com bubble of the 1990s was driven by the belief that such interactions would move online — that instead of ordering in person or by phone, consumers would visit websites to order sandwiches, buy pet supplies, or pick up groceries. The assumption was that a significant portion of the economy would migrate online, and companies that got established early would thrive and create wealth.

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In retrospect, this was largely a correct assumption. However, the challenge was that the “internet” in the late 1990s was characterized by browsing on desktop computers with bulky PC towers with CRT screens, accessed via 56K dial-up modems. It was the right idea but in the wrong form.