[HN Gopher] Dark Software
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       Dark Software
        
       Author : superzamp
       Score  : 44 points
       Date   : 2024-06-13 16:44 UTC (1 days ago)
        
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       | mcpar-land wrote:
       | I kept waiting for the Dark Kitchen section of the article to end
       | with "...and this is a miserable, alienating model that makes
       | nobody happy," but it never came.
        
         | necubi wrote:
         | Right, the ghost kitchens make (generally) terrible food, but
         | are able to get orders by spamming the DoorDash/UberEats search
         | pages. And if a particular brand gets too many bad reviews, no
         | problem. Shut down and start a new one with another punny name.
         | 
         | Traditionally restaurants (like many software companies,
         | incidentally) live and die by their "brand" and by their
         | ability to get repeat customers. This more-or-less aligns
         | incentives between the restauranteur and their patrons. But
         | under the ghost kitchen model, there's no reputation, no real
         | brand, so the restaurant is incentivized only to make food as
         | quickly and cheaply as possible.
        
           | cyberax wrote:
           | That hasn't been my experience with ghost/dark kitchens. They
           | work great for niche ethnic foods that might not attract
           | enough foot traffic.
        
           | rockemsockem wrote:
           | The cloud kitchens I've ordered from were great and often had
           | food that you wouldn't be able to get whatever, like just
           | basic roasted chicken. I think it's a fantastic model where a
           | talented chef can just focus on cooking.
        
             | necubi wrote:
             | There's nothing inherently wrong with the disaggregation of
             | kitchen and dining rooms, so certainly you can get good
             | food out of a commissary kitchen. In my area there's an
             | amazing korean katsu place that's run out of one.
             | 
             | But restaurants like that are fighting against the
             | incentive structure, and the incentives always win.
        
           | quirino wrote:
           | That's also my issue with dark kitchens. Apps list actual,
           | physical restaurants, next to what is just people making food
           | in their own homes. And I've found instances of the name
           | changes you mentioned.
           | 
           | There's this "premium" burger place I like has alternative
           | "delivery first" menu with lower cost offerings and a whole
           | different name and branding. You can also order from this
           | menu in person but you need to ask for it. I find this to be
           | an interesting strategy.
        
           | apantel wrote:
           | It's the same with news and media. The traditional media
           | companies (news, television, newspapers), etc all had to be
           | massive brick-and-mortar businesses with huge capex (printing
           | presses, broadcast equipment, etc). Very high barrier to
           | entry, high cost to play, and you had to organize all of it
           | under a real brand tied to real plants and offices... which
           | meant you had to care about your reputation... which meant
           | you had to make sure your editorial department was doing a
           | good job.
           | 
           | Now the web is full of bootstrapped digital media outlets
           | that have no skin in the game in terms of real-world
           | presence. They don't have printing presses to run. They don't
           | have delivery trucks. They don't have inventory to manage.
           | It's just air. There's nothing there. Maybe a single open-
           | plan office, or just a group of digital nomads working out of
           | a corner of a coworking space. You can build and tear down an
           | outfit like that in a week. Whereas to spec out, order,
           | install, house, operate, and amortize/depreciate a single
           | printing press would be a multi-year to multi-decade
           | undertaking by a real business.
           | 
           | It's all fluffy clouds now.
        
         | immibis wrote:
         | How doesn't it? I've ordered from some; they were fine.
         | Expensive, but food delivery always is. This probably depends
         | on your city, its regulations, the ratio of dark to normal
         | kitchens, and whether enshittification-as-a-service providers
         | have entered your city yet.
         | 
         | Disaggregation of food-making services and seated-dining
         | services makes a whole lot of sense, actually. Just look at any
         | food court - why should each food-maker have its own seating
         | area, when seating areas are interchangeable and cheaper to
         | deliver at scale?
         | 
         | However, disaggregation of food-making services and branding
         | absolutely doesn't make sense for anyone except for people
         | trying to confuse you to make a buck.
        
           | mcpar-land wrote:
           | Because dark kitchens / ghost kitchens aren't just
           | outsourcing their seating area, they're outsourcing
           | everything but the logo. Ghost kitchens will frequently "cook
           | for" more than one "restaurant," but these separate
           | restaurants will have the exact same items on their menu,
           | because they're coming out of the same kitchen. It's
           | dishonest and done exclusively to put more "options" on
           | delivery apps that funnel orders to the same business.
           | There's a dozen other reasons ghost kitchens are bad for
           | everyone involved (except the business owners).
        
             | immibis wrote:
             | Oh, yeah. Maybe it's worth differentiating between kitchens
             | that are otherwise legit but exclusively serve via delivery
             | apps, and kitchens that are spam. The former can be "ghost
             | kitchens" and the latter can be "dark kitchens".
        
             | rockemsockem wrote:
             | This is the first time I'm seeing that definition applied
             | to ghost kitchens.
             | 
             | I've always seen it used to describe food for
             | pickup/delivery out of an industrial kitchen which usually
             | has several "restaurants" working out of it.
             | 
             | I've had very good experiences with these.
        
             | Gormo wrote:
             | > Because dark kitchens / ghost kitchens aren't just
             | outsourcing their seating area, they're outsourcing
             | everything but the logo.
             | 
             | Which means that you thought your food was going to be
             | prepared by some people you don't know, but ended up
             | getting food prepared by _other_ people you don 't know.
             | 
             | > It's dishonest and done exclusively to put more "options"
             | on delivery apps that funnel orders to the same business.
             | 
             | How is that any more dishonest than multiple OEMs
             | rebranding the same manufacturer's consumer products or
             | conventional restaurants using the same recipes and buying
             | the same bulk ingredients from Cheney Bros. or Sysco?
        
       | zeroCalories wrote:
       | So the future is more repackaging of existing products? Yippy!
       | Stand back Vercel, I'm sewing you and a few other human centipede
       | startups together into a new saas with 1000% markup. YC25 here I
       | come.
        
         | immibis wrote:
         | The irony is that Vercel is already doing that. You're making a
         | human centipede out of human centipedes. And each layer adds
         | 1000% markup! Vercel adds a 1000% markup on AWS, which adds a
         | 1000% markup on servers. You could add a 1000% markup too!
        
       | philsnow wrote:
       | > The [dark kitchen] model is so powerful that Uber's founder,
       | Travis Kalanick, started one after he left Uber that was last
       | valued at $15 billion.
       | 
       | This sentence makes it sound like he just decided "you know, this
       | $15B company is _fine_ , but I think I can do better" and just
       | amicably 'left'.
        
         | FreakLegion wrote:
         | It's CloudKitchens that was last tagged at $15 billion. Uber's
         | valuation was much higher.
        
         | sidewndr46 wrote:
         | Wasn't Kalanick basically booted from Uber? I think he retained
         | his partial ownership.
        
       | Zenzero wrote:
       | The logic of this article is all over the place.
       | 
       | At the root of it, the author is arguing that everyone needs to
       | reach for common tools to patch together feature-packed solutions
       | for a narrow set of customers. This somehow translates into it
       | being cheaper to build and more appealing to customers. The
       | problems I see:
       | 
       | 1) Stuffing a bunch of third party services together to make a
       | product is great for a startup looking to launch quickly, but in
       | practice it is usually horrible long term. Quality integration
       | between your features becomes difficult, and you will often
       | sacrifice the UX as a result.
       | 
       | 2) Outsourcing everything makes you a thin wrapper. Talk about
       | commoditization.
       | 
       | 3) The author seems to assume that the brand is the business, not
       | the underlying product. That doesn't even hold for hamburgers,
       | let alone specialized software verticals.
       | 
       | 4) In an era of software being dumped on the market in droves,
       | the solution is not to dump into the market even faster. I can
       | tell you as someone coming from the medical side of things that
       | people try doing this to us all of the time, and it's just
       | endless heaps of garbage software. People would be smart to take
       | the time to really think through our problems in the fine details
       | where they matter. I know that doesn't mix well with a VC-backed
       | growth at all costs model, but frankly that's not my problem.
       | 
       | The article feels like it was written by an MBA, not an engineer.
        
         | Veuxdo wrote:
         | > The article feels like it was written by an MBA, not an
         | engineer.
         | 
         | I'm trying to come up with a name to describe this style of
         | writing. The key components are how hyper-confident the author
         | is in The Future and how everyone who has even a day's more
         | experience than the author is old fashioned and will certainly
         | be roadkill this time next week.
        
           | stratigos wrote:
           | I was just thinking it sounds like a very ambitious, engaged,
           | and intelligent 24 year old (a kid).
        
       | jordansmithnz wrote:
       | No one wants dark/cloud kitchens, and I don't think anyone wants
       | dark software either.
       | 
       | It's extremely hard to do many things well. If a restaurant
       | specializes in pizza, they're going to get good at doing that --
       | their employees will know the best way to cook them, their
       | recipes will slowly evolve over time, etc. If a restaurant rarely
       | cooks a pizza, none of that experience and refinement is there.
       | 
       | Not to mention, DoorDash doesn't have any obvious health ratings
       | visible for restaurants in NYC. I'll happily order from somewhere
       | I know, but not some unknown restaurant. And what's to stop a
       | poorly rated dark kitchen from closing shop and reopening the
       | next day under new branding?
       | 
       | The whole model feels gross. It's centered around profit and
       | questionable tactics, rather than making a genuinely good product
       | that people come back for.
        
         | alexpotato wrote:
         | > I'll happily order from somewhere I know, but not some
         | unknown restaurant
         | 
         | Exactly this.
         | 
         | Part of why I go to (or order from) a particular restaurant is
         | that I've been there before and I have an expectation of the
         | taste, quality, service etc. I could also, in theory, go look
         | into the kitchen and see if there are safety issues etc (or
         | outsource this to an inspector). Feels a lot tougher to do this
         | if the "restaurant" is just a label on top of the dark kitchen
         | product.
         | 
         | On a side note, this is why chain restaurants were so
         | successful: you could go into one in any part of the country
         | and have a predictable experience with some base level of
         | quality. The mom and pop restaurant in the town you've never
         | been to wouldn't have that same offering to you (it might for
         | locals though).
        
       | immibis wrote:
       | Mobile games are already using the Dark Kitchen model; so are
       | dating sites/apps. I remember that match.com operated almost all
       | dating apps - around two hundred of them - at some point in time.
        
       | victorbjorklund wrote:
       | So just white label software?
        
         | sidewndr46 wrote:
         | so "Microsoft Windows By Dell" instead of "Dell Computer,
         | powered by Microsoft Windows"
        
       | sklargh wrote:
       | This strikes me as a rebrand of the "value-added" reseller or
       | consultant implementation model; particularly in the middle-
       | market space. I'm sure there are imagined differences in theory
       | but in practice I can't imagine that it's much different with the
       | exception of private capital coming from VCs rather than PEs.
        
       | mushufasa wrote:
       | Ya as someone who is a builder in the fintech space... it doesn't
       | work to wave hands and stitch together a bunch of third-party
       | software into one offering.
       | 
       | Regardless of how neat the integration seems on paper, in
       | practice the general "law" is that it won't work in the way you
       | specifically want it to work. Often users get frustrated because
       | they see the third-party has a feature, but that specific feature
       | isn't setup to be integrated well, and instead the third-party
       | "integration" hub is just the least common denominator
       | functionality, which achieves "logo integration" but barely
       | delivers value to users.
       | 
       | Developers are spoiled thinking about super well documented &
       | flexible APIs like stripe, whereas in many industries b2b
       | software providers are nowhere as robust. If you're not directly
       | their customer, they won't put in the extra effort to support
       | your integration.
        
       | danjl wrote:
       | Dark kitchens are not designed to scale. In fact, they are the
       | opposite - they only implement part of a company. There is no
       | problem with sass as a business model. It's quite valuable to
       | have a company manage software and data for you. The pernicious
       | part is that they don't allow you to access your data unless you
       | pay them in order to make it sticky. Consumers should demand
       | access to their data and that would enable a new type of company
       | that provides a service which will switch you between different
       | saas services.
        
         | nine_k wrote:
         | Game theory opposes this.
         | 
         | The current equilibrium: data are co-located with processing,
         | both the storage and the processing ("service") are things that
         | clients are happy to pay to offload. Bringing data in is easy
         | and often free. Taking the data out is hard / expensive, so
         | customers stick unless the service becomes truly poor.
         | 
         | Imagine a player which makes it easy to take the data away. Now
         | customers have easier time leaving, and will leave more often.
         | They will go to the "sticky" SaaS players, and will get stuck
         | there. There could be a bigger influx of new customers because
         | it's less risky to try, but "sticky" providers also offer trial
         | periods and free tiers.
        
       | sidewndr46 wrote:
       | > AI will cause these dynamics to spiral even faster, making
       | software even cheaper and distribution more expensive. It's still
       | early, but there are plenty of fascinating examples of AI acting
       | as an increasingly competent replacement for engineering.
       | 
       | I've been hearing this for years and I'm still waiting on it. The
       | most I've seen is some employees using ChatGPT or similar to
       | produce some initial code. But even those employees reported you
       | have to spend the same amount of time painstakingly analyzing
       | each section of code because it contains unusual or bizarre bugs
       | in edge cases.
        
         | stratigos wrote:
         | Ive been working in AI for about a year, and Ive been working
         | as a web developer for about 20 years. It appears to me that
         | everyone that thinks AI is going to handle development for
         | companies (in the reasonably near future) are also folks who
         | have never had high level engineering responsibilities for a
         | single project for a multi-year period. That is, theyve never
         | been exposed to the realities of how nuanced _managing_ a
         | software product is at a technical level. The bots can barely
         | write code-bootcamp level scripts. Im not confident that we
         | will see AI solving the kinds of (coding) problems that
         | engineering leaders are handling over multi-quarter projects.
        
           | ok_dad wrote:
           | My theory is that they know it won't work, but they're
           | scaring developers into using and improving AI and taking pay
           | cuts, so that they can eventually replace them. Every penny
           | they can take from humans and invest in AI research is being
           | used in order to be able to get rid of the humans,
           | eventually.
           | 
           | The AGI that might eventually come won't free humanity from
           | labor, it will free the wealthy from having to manage and
           | support laborers.
        
       | JohnCClarke wrote:
       | Curiously, the YouTube algorithm recommended that I read "Count
       | Zero", so here I am.
       | 
       | I think Neuromancer absolutely nailed the future of business:
       | giant ledgers holding records of every communication, event and
       | transaction affecting the organization. And all of that
       | information processed by AIs under the control of a small number
       | - one even - of owners.
       | 
       | The AIs will decide whether they need to write and compile code
       | to process the data or whether the task is small enough that they
       | can just do it directly. Exactly like a human deciding whether to
       | write a script or just use a spreadsheet. In this future the only
       | B2B market is for AIs.
        
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