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Even in this market whereby consumers must order food via apps, none of the food delivery companies are profitable from my understanding. Can anyone explain ho
by kumarski 6y ago
Even in this market whereby consumers must order food via apps, none of the food delivery companies are profitable from my understanding.
Can anyone explain how this works/how this came to be?
- mooreds 6y agoFood is a business with skinny skinny margins (source, worked on a startup which provided services to food businesses, family members own food businesses). Delivery companies are fighting for a piece of that market which isn't full of margin, so they're having to fight for it. Plus they're in a landgrab, so choosing growth over profits.
- shay_ker 6y agogrubhub was profitable for years
- erik_seaberg 6y agoCharging for referrals was profitable; they didn't deliver until 2014.
- shay_ker 6y agoDelivery at a loss or break-even to drive profitable orders is also a fine strategy, and worked for quite some time