The Price of Survival: Is raising rates the only way out for food delivery?
In the preceding articles, we explained that “Winner-Takes-All” strategists like DoorDash, Thuisbezorgd, GrubHub and UberEats are fueling their company’s growth with venture capital to acquire market share at any cost. However, due to changing economic conditions, venture capital is drying up. This has forced these companies to turn to increasing profitability by raising platform costs. The problem with this strategy is that restaurants were already operating at a loss on take-away and delivery before these increases.