Ask HN: At what scale do food delivery companies become profitable?
Here in India it looks like the 2 major food delivery players ( Swiggy and Zomato ) have pretty much crushed the competition with massive investments. They still seem to be loosing 100's of millions of dollars every year even when not including marketing costs. Having talked to some restaurant owners on these platforms as well as delivery agents - everyone seems to be unhappy with the commissions that these platforms take(too high) and delivery charges they pay to agents(too low). How do these companies expect to become profitable? Especially as they still are not profitable even in a duopoly like situation in a massive country like India.
1 comments
Why are you assuming they can ever be profitable?
These aren’t businesses with well thought out revenue models.
They’re VC funded startups whose entire goal is to be bought out so the VCs can make a profit.
The business itself making a profit is not their problem.
These aren’t businesses with well thought out revenue models.
They’re VC funded startups whose entire goal is to be bought out so the VCs can make a profit.
The business itself making a profit is not their problem.