Doorman business on the last shark tank.

[AKCoverMan]

You can certainly bet first time his personal car delivery vehicle is involved in an accident his insurance will consider it as being used in commercial service. If his coverage is for personal use only they will drop him faster than a hot potato.

 

[AKCoverMan]

Last time I checked my son did not have a DOT placard on the side of his Saturn.

Dave did your son let his insurance co know he is delivering pizza? I delivered pizza in between jobs many times and got away with it (was young and dumb) but any wreck could have bankrupted me.

 

[Brownslave688]

If he's using a personal vehicle to make deliveries, that'll end quickly when he gets in his first fender bender. The personal auto policy forbids any IVERY. del-ivery, L-ivery (taxi, etc) and policy would be canceled.

So you're saying uber is illegal insurance wise?

 

[upschuck]

Dave did your son let his insurance co know he is delivering pizza? I delivered pizza in between jobs many times and got away with it (was young and dumb) but any wreck could have bankrupted me.

Wondering if the pizza chain had transferable insurance that would only kick in when he was on the job, if there is such a thing.

 

[PT Car Washer]

Wondering if the pizza chain had transferable insurance that would only kick in when he was on the job, if there is such a thing.

You mean like when UPS is responsible when an employee uses their personal vehicle to deliver.

 

[upschuck]

You mean like when UPS is responsible when an employee uses their personal vehicle to deliver.

We had copies of insurance papers so when someone had to take their own car(not for deliveries), that they would use liberty mutual as their insurance, if something happened. I'm sure the sups, and mangers have them for observations and the such. Haven't seen a current one in a long time.

 

[OLDMAN3]

Besides the regulation and insurance issues he is likely to encounter as he grows, He also mentioned that at present only 3 drivers are doing his deliveries (probably him and 2 buddies). He is going to run into problems trying to find dependable, honest, delivery drivers who are willing to use their own vehicle. I was really surprised a Shark partnered with him.

 

[upschuck]

He had a couple wanting to partner with him.

 

[TooTechie]

So you're saying uber is illegal insurance wise?

I've heard of uber but honestly not really sure what it is, so can't say.

Wondering if the pizza chain had transferable insurance that would only kick in when he was on the job, if there is such a thing.

There is an optional endorsement that can be added to a commercial policy to extend coverage to non-company owned vehicles used occasionally and another to extend coverage to an employee using a company vehicle for personal reasons. These aren't typically in place for pizza shops. If a pizza delivery boy caused an accident resulting in property damage or injury/death to others the pizza boy's personal coverage would be primary (and the company could possibly disclaim coverage for violating the terms of the policy) and then the company's general liability policy or CAP if applicable would be secondary. If the pizza boy was on duty when the loss occurred the victim could also file suit against the pizza company/shop regardless of coverage/policies as he was in its employ.

 

[Fragile]

Aren't there some type of interstate commerce regulations the DOT has in place to address clowns like this endangering others and themselves?

 

[10 point]

First, if his drivers were involved in an accident they'd have to tell someone they were working a delivery route. They may not disclose that.

Second, delivering wine or alcohol brings in to play federal issues that could be pouring gasoline on the fire.

I'm hoping he did his homework since the cat's out of the bag and if not, well good luck to everyone involved.

 

[worldwide]

I watch shark tank on Friday nights at 9:00 and this one had a man who started Doorman only in San Francisco. He charges someone starting at $3.99 a package to ship whatever you buy to his warehouse and from there you set the delivery time. He was mainly delivering at night or when it was convenient for you. As an example he had a dummy door with notes plastered on it. One of the sharks actually invested in it. More cities to follow as he grows. Deliveries were made by personal vehicles. Any comments?

An interesting niche. I think UPS has tried to meet this need with the combination of My Choice and now Access Points. My Choice allows the receiver to specify a 2 hour delivery window as well as designate where they want their packages left. Access Points are alternate delivery locations that are located very close (within 10 minutes) of the receivers home/apartment (really designed for Urban areas). The receiver can designate to have their packages shipped to a UPS Access Point and the receiver can then pick up the package when they want (nights, weekends, etc.).

My guess is that My Choice and Access Points would cover at least 95% of deliver "conditions" for the majority of consumers. Most people don't want to pay for shipping. I'm sure there is a certain percentage of the population this will appeal to but that niche may not be enough to sustain their operations. Time will tell.

 

[ups1990]

Good for him. Wish him well.
I say, join the club!
Weirdos at night, people who let their dogs loose when they come back from work....
I wonder if he has a dimensional limit on those $3.99 packages? Weight lifting and gym machines are a pain to deliver, as well those sleep number beds.

 

[STFXG]

He won't have to be federally regulated if his vehicles are under 10k pounds gvw. Would just have to follow state rules.

Since his warehouse is the point of delivery once he has accepted the packages he is now delivering intrastate. Again, keeps him out of federal regulation.
Insurance wouldn't really be a big deal. No different than any other company getting business coverage. The cost would depend on how much liability coverage he wants to get. We (contractors) carry a 1 million minimum. Most have excess coverage up to 2 million. But that wouldn't be required for this guy's company. He could roll the dice if he wanted to.

 

[dragracer66]

I saw that episode also. I thought it was a dumb idea. You have to figure most business aren't going to be open that late at night. Most residence's aren't going to want some strange guy in a personal car banging on your door late at night to deliver something. It may work locally for him but on a national level he'd have to be in all 50 states. If UPS or Fed Ex ever felt threatened by a service like that they could squash him instantly by offering the same service the very next day. And he be nothing but a memory to the shark.