To add another layer of absurdity in using Door Dash as a measure of affordability, with the possible exception of avocados, none of the things on this list are tariffed. To your point about coffee prices, I would add that coffee is getting killed because of the specious tariffs on Brazil. Because of its dominance of the market, the price of Brazilian coffee sets the market price.
As others have pointed out, you can't build an inflation index on four items. To wit, I don't know that many people who eat avocados at breakfast. That might be the case in New York City or L.A., but in the vast majority of the country, avocados aren't a breakfast food - maybe guacamole, for a tailgate, but not breakfast.
The comparision to ADP is really apt here. While ADP has earned some trust over the years, its still fundamentaly a sample from their own client base rather than a comprehensiv survey. The same issue applies to DoorDash trying to become an economic indicator. When companies position themselvs as data providers to influence policy, we should always ask about their incentives and methodology.
It's really hard to accept their methodology when you consider the area variations that arise from differing vendors adding "fees" or price differentials passed through due to their DoorDash partnerships. (They also seem to cherrypick geography based on metric?) A better measure would have been the food-out pricing had an individual ordered and picked-up their own food, but the White House would have needed to confess to the strength of BLS data.
The DoorDash report reads more like a marketing/recruitment tool than stringent research.
DoorDash is a company which has one goal -- to make profit by selling its services. If the price of their product to customers declines, they can reasonably hope to sell to more customers. If that occurs as a result of a decline in the cost of the inputs, then they can preserve their profit margin while selling more, meaning greater gross profits. Nothing against DoorDash -- this is what marketing is. Caveat emptor. The blame is on the government's use of this information to convey a misleading impression about overall US inflation.
To add another layer of absurdity in using Door Dash as a measure of affordability, with the possible exception of avocados, none of the things on this list are tariffed. To your point about coffee prices, I would add that coffee is getting killed because of the specious tariffs on Brazil. Because of its dominance of the market, the price of Brazilian coffee sets the market price.
As others have pointed out, you can't build an inflation index on four items. To wit, I don't know that many people who eat avocados at breakfast. That might be the case in New York City or L.A., but in the vast majority of the country, avocados aren't a breakfast food - maybe guacamole, for a tailgate, but not breakfast.
interesting
It is! Thanks for the comment 😁
The comparision to ADP is really apt here. While ADP has earned some trust over the years, its still fundamentaly a sample from their own client base rather than a comprehensiv survey. The same issue applies to DoorDash trying to become an economic indicator. When companies position themselvs as data providers to influence policy, we should always ask about their incentives and methodology.
It's really hard to accept their methodology when you consider the area variations that arise from differing vendors adding "fees" or price differentials passed through due to their DoorDash partnerships. (They also seem to cherrypick geography based on metric?) A better measure would have been the food-out pricing had an individual ordered and picked-up their own food, but the White House would have needed to confess to the strength of BLS data.
The DoorDash report reads more like a marketing/recruitment tool than stringent research.
DoorDash is a company which has one goal -- to make profit by selling its services. If the price of their product to customers declines, they can reasonably hope to sell to more customers. If that occurs as a result of a decline in the cost of the inputs, then they can preserve their profit margin while selling more, meaning greater gross profits. Nothing against DoorDash -- this is what marketing is. Caveat emptor. The blame is on the government's use of this information to convey a misleading impression about overall US inflation.