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How much money does Uber Eats make? For that matter do any of these delivery companies make money? Its pretty hard to see how. Someone has to take a hit, enter
by yalogin 7y ago
How much money does Uber Eats make? For that matter do any of these delivery companies make money? Its pretty hard to see how. Someone has to take a hit, enter the restaurant, delivery company or the user. One cannot expect the user to fork a lot of money, and the delivery company probably wants to make money at some point, so it will mean the restaurants have to be willing to eat these costs over the longterm. Is this sustainable? I cannot imagine the delivery/routing algorithm to find optimum routes every time to merge or make the delivery efficient.
- jddj 7y agoGlovo say they become profitable (in that city) six to nine months after arriving. They seem to be run quite differently though to Uber / Deliveroo, probably because VC money doesn't or didn't flow quite as easily in Barcelona as it does in California. They talk about how it's a matter of timing and not entering markets with two established players, but I think the key for them has been only bothering with places which have a combination of low salary expectations/requirements and high densities (southern Europe, Latin America, Africa). I imagine that it's the driver pay in high-pay societies which blows up the economics of it.