Glovo Uber Eats Just Eat 2022 profitability - There is light at the end of the tunnel: increased talk of profitability.
A few years ago, talking about profitability in the sector was something like being a spoilsport. First climb, be everywhere, then see how to make money.
Most of these companies have weathered the storm inflated by venture capital funds. However, in an increasingly mature market, a consumption that does not stop growing and the consolidation of these big giants, now the accounts seem to start to come out.
The money earned by a platform is given by the commission charged to the restaurant, the price charged to the user to receive your order and a service fee (also charged to the user).
In the first case, the commissions of these companies are usually between 30% and 35%. However, in the agreements that are signed with large chains as in the case of McDonald's, the commission charged by the platforms is infinitely lower, since it attracts a significant volume of orders.
Glovo Uber Eats Just Eat 2022 profitability
Sometimes, many of those orders that are made from McDonald's are not even profitable for the platform. But, not offering in your application to a player as important as the fast-food chain would sign a death sentence.
This issue has generated much controversy between restaurants and platforms, since the first complain that commissions are too high. In cities like New York, during the pandemic, a maximum commission of 20% was established by law and is now being negotiated to implement it in a lasting way over time.
In addition, according to the source, it prepared the portal Which last year in the UK, found that orders are more expensive through these applications. The survey conducted by this means, a meal ordered directly at the restaurant and through applications varied in cost in 11,62 pounds (almost fourteen euros).
The question is how can these companies be profitable?
According to a study by the Open University of Catalonia (UOC) that analyses the profitability of the business model of delivery companies, considering a 30% commission to the restaurant and a model of autonomous delivery, a minimum of 8,000 deliveries per day is needed to exceed operating expenses, and almost 19,000 to maintain the scale of the company and expand to other markets.
UOC researchers add to Glovo Uber Eats Just Eat 2022 profitability
But in addition, according to the UOC researchers, if a full-time delivery model is added to the equation, costs would increase by 30%.
"In large cities these business models can be profitable. If you look at how many people order food at home, you see that the numbers can come out. The problem is that the margins are very tight," Eduard Alvarez-Palau, an expert researcher in logistics at the UOC and a member of the team that carried out the study, told.
"The question is rather to gain market position and as you grow, become preponderant over the rest. Then that is when you can impose new criteria to restaurants and users. And then they start to be profitable, " he says.
The most paradigmatic case in this sense is Delivery Hero, which exactly meets the formula explained by Alvarez-Palau.
This week the German giant, founded a decade ago in Berlin, announced its forecasts of reaching a positive abide between 0 and 100 million euros by the end of this year in its food delivery segment.
And analysts predict that by 2023, the entire group will come out of the red.
After the purchase of the Spanish Glovo, the German has a presence in about seventy-five countries, in many of which it is the number 1 in terms of market share.
Although his competitors are on his heels.
Uber Eats comments Glovo Uber Eats Just Eat 2022 profitability
Uber Eats confirms through an email that is already profitable in ten markets, and Just Eat, meanwhile, has also recorded quarters in positive. Although currently the Dutch company has made a series of strong investments in other companies that have weighed down their accounts this 2021.
"The war on shipping costs to win users by aggregators has accustomed consumers to not give it enough value. How much are you willing to pay for convenience? When a consumer is used to not paying it is exceedingly difficult to reverse", says Cristina García Fuente, director of the area of Restoration and Foodservice Kantar Worldpanel.
Currently, the prices charged by these platforms to users range from zero euros-the offers are constant and often with orders over 15 euros the shipping costs are free-up to 2 euros and a half, approximately.
The price war to attract new customers and retain existing users has had a negative impact on all platforms.
In addition, these very tight margins have made many of these companies look for other income alternatives, either signing agreements with supermarkets to take the purchase home, investing in dark stores, exploring the ghost kitchen business, or signing agreements with companies in other sectors to deliver not only food at home.
# Glovo Uber Eats Just Eat 2022 profitability #
