3 ms·

Unless I'm mistaken, Ocado is still not profitable even if it's been at it for 13 years.

by pothibo 12y ago

deleted 12y ago
[deleted]
pluma 12y ago
There's an online shoe/fashion retailer in Germany (Zalando, because faux Italian is the new dot-com) that's apparently following Amazon's "every sale is a loss but we're making up for it in volume" model. They're ridiculously successful (in terms of sales and market share) and often held up as an example for successful tech companies. I'm not entirely sure what their long term plan is, but I'm hoping this is just an attempt to establish a monopoly that can then be exploited to turn the operation into a profit.
- andrioni 12y ago
  Zalando is already giving profits since Q2 2014.
  - pluma 12y ago
    Interesting. Is this in any way correlated to the change in legislature regarding free returns? Many armchair economists were speculating that that would be one of the biggest financial pain points.
porsupah 12y ago
Apparently, Ocado did indeed finally turn a profit this year: http://www.theguardian.com/business/marketforceslive/2014/jul/01/ocado-profit-shares-slump-miners http://www.theguardian.com/business/marketforceslive/2014/ju... A pity to see even they're running so lean on the profit margins - I've found them to offer the best organised process for actually getting the groceries inside, where all the crates are staged first, then the bags unhooked and hefted inside, taking very little time at all, versus the loose bags or even completely loose items of the other supermarket delivery operations.
makomk 12y ago
Most people use food delivery services run inhouse by the major supermarkets, which also means that it's hard to tell whether or not they're profitable. Tesco claims that theirs is (though not masively so) but it's not clear how accurate their figures are, and the competing supermarkets refuse to provide that information.

3 ms·

Unless I'm mistaken, Ocado is still not profitable even if it's been at it for 13 years.

by pothibo 12y ago

Unless I'm mistaken, Ocado is still not profitable even if it's been at it for 13 years.

deleted 12y ago
[deleted]
pluma 12y ago
There's an online shoe/fashion retailer in Germany (Zalando, because faux Italian is the new dot-com) that's apparently following Amazon's "every sale is a loss but we're making up for it in volume" model. They're ridiculously successful (in terms of sales and market share) and often held up as an example for successful tech companies. I'm not entirely sure what their long term plan is, but I'm hoping this is just an attempt to establish a monopoly that can then be exploited to turn the operation into a profit.
- andrioni 12y ago
  Zalando is already giving profits since Q2 2014.
  - pluma 12y ago
    Interesting. Is this in any way correlated to the change in legislature regarding free returns? Many armchair economists were speculating that that would be one of the biggest financial pain points.
porsupah 12y ago
Apparently, Ocado did indeed finally turn a profit this year: http://www.theguardian.com/business/marketforceslive/2014/jul/01/ocado-profit-shares-slump-miners http://www.theguardian.com/business/marketforceslive/2014/ju... A pity to see even they're running so lean on the profit margins - I've found them to offer the best organised process for actually getting the groceries inside, where all the crates are staged first, then the bags unhooked and hefted inside, taking very little time at all, versus the loose bags or even completely loose items of the other supermarket delivery operations.
makomk 12y ago
Most people use food delivery services run inhouse by the major supermarkets, which also means that it's hard to tell whether or not they're profitable. Tesco claims that theirs is (though not masively so) but it's not clear how accurate their figures are, and the competing supermarkets refuse to provide that information.