“Profit margins are tight or nonexistent in food delivery due to stiff competition to sign the most popular restaurants and add customers.”
"Gross food sales for Grubhub rose 8 percent to US$1.6 billion in the first quarter, and it reported a net loss of about US$33 million.
Uber’s gross bookings for food delivery increased 52 percent to US$4.68 billion in the same period, but the division’s loss also rose."
What it basically does is playing their stocks, merging with similar companies to make stock prices rise or have enormous IPO’s. Making any sense?
1 Like
I guess the whole logic is that some day way in the future there will be a single surviving company in each market with massive economies of scale and leverage over the restaurants. But then they might also all be bankrupt by then.
2 Likes
And …
“UberEats, Grubhub, DoorDash, Postmates and Caviar have long been operating what many restaurant owners describe as parasitic businesses. According to the restaurant industry, they intercept customers and then take roughly 30 percent of the sale for facilitating the online order and delivery. The apps says they provide restaurants with customers they wouldn’t otherwise have.”
1 Like
“A food delivery drone operated by Alphabet subsidiary Wing landed on overhead power lines in Brisbane, Australia, and caught fire.”
No worries, it was roast duck!
1 Like