Before we delve further, let’s have a look at the current UK food delivery share. In contrast to popular narrative, $UBER and Deliveroo have not gained share from $TKWY. This is despite being in the best position to take advantage of market environment (COVID). $UBER share of orders has been flat once we remove discounted orders.
Thanks for the very detailed write-ups on JET and its competitors. I get the argument of JET vs Deliveroo vs UBER, but I'm wondering if this squeezing each other out of the business of sorts is symptomatic of the overall market not being big enough to support this business?
Fundamentally, food delivery must be incremental profit (not only revenue) to the restaurant or it doesn't make sense to use it. Net of the take-rate, the economics to restaurants can be quite poor. And most food delivery platforms pay their workers very badly as well, so in essence the story of food delivery platforms adding incremental value to the system has mainly resulted in platforms earning but at the expense of other stakeholders (restaurants, delivery staff). My guess is perhaps it's not developed or mature enough? But can understand with more usage it should start to work. Curious to hear what you think.
Just wondering whether there could be a win-win situation for all stakeholders and what margins food delivery would stabilize at.
Thanks for the very detailed write-ups on JET and its competitors. I get the argument of JET vs Deliveroo vs UBER, but I'm wondering if this squeezing each other out of the business of sorts is symptomatic of the overall market not being big enough to support this business?
Fundamentally, food delivery must be incremental profit (not only revenue) to the restaurant or it doesn't make sense to use it. Net of the take-rate, the economics to restaurants can be quite poor. And most food delivery platforms pay their workers very badly as well, so in essence the story of food delivery platforms adding incremental value to the system has mainly resulted in platforms earning but at the expense of other stakeholders (restaurants, delivery staff). My guess is perhaps it's not developed or mature enough? But can understand with more usage it should start to work. Curious to hear what you think.
Just wondering whether there could be a win-win situation for all stakeholders and what margins food delivery would stabilize at.