Wow. I thought Uber were going for it? The food delivery market share war is really interesting.
For folks in the UK. The Competition Markets and Authority (CMA) delayed a decision on whether Amazon could invest $500m in Deliveroo as of yesterday[1]. Deliveroo are more established in Europe but I can now see the CMA approving Amazon investment into Deliveroo[2]. Why? Just Eat provided evidence to the CMA recently on why the Amazon investment into Deliveroo could be problematic [3]. Just Eat then go off to spend a $7b to secure the U.S market ahaha. In my opinion Takeaway.com/Just Eat are now scrambling for marketshare.
Amazon tried to enter the food delivery market back in 2014-16 and they had every right to![4]. But, competition pushed them out in my opinion. So now Amazon are wanting to re-enter via investment into Deliveroo. It's very smart move because Deliveroo service is pretty amazing already.
Just Eat are getting too big. They destroyed Hungry House by buying it a few years ago. This was before Deliveroo and Uber Eats were known to most people. Seems like Just Eat are afraid of competition.
I was not aware of Hungry House. but you're right! They purchased them too [1]. Yeah it feels like a "screw it" lets do this type of move from Takeaway.com/Just Eat. From my research it looks like Just Eat are threatened by competition and re-entry into the market from Amazon. $500m investment could really push Deliveroo on. I see similaries between Deliveroo and Amazon in wanting to provide very quick delivery service.
Well, the big difference between GrubHub/Just Eat and Deliveroo/Uber is that the former were actually profitable software businesses, while the latter are VC funded blitzscaling nonsense.
But now the profitable companies are forced to run unprofitable delivery networks because of the VC funded (well public market funded for Uber now) hype-train of on-demand.
Is there a Gresham's law for business models or something?
I disagree. Deliveroo have a presence in Europe (eg Italy, France, Belgium). Then theres Hong Kong, Austrilia, UAE, Singapore. Investment would affect other markets too.
For folks in the UK. The Competition Markets and Authority (CMA) delayed a decision on whether Amazon could invest $500m in Deliveroo as of yesterday[1]. Deliveroo are more established in Europe but I can now see the CMA approving Amazon investment into Deliveroo[2]. Why? Just Eat provided evidence to the CMA recently on why the Amazon investment into Deliveroo could be problematic [3]. Just Eat then go off to spend a $7b to secure the U.S market ahaha. In my opinion Takeaway.com/Just Eat are now scrambling for marketshare.
Amazon tried to enter the food delivery market back in 2014-16 and they had every right to![4]. But, competition pushed them out in my opinion. So now Amazon are wanting to re-enter via investment into Deliveroo. It's very smart move because Deliveroo service is pretty amazing already.
[1] Amazon/Deliveroo delayed decision: https://uk.reuters.com/article/deliveroo-ma-amazon/uk-regula...
[2] Amazon/Deliveroo CMA inquiry: https://www.gov.uk/cma-cases/amazon-deliveroo-merger-inquiry
[3] Just Eat CMA inquiry response: https://assets.publishing.service.gov.uk/media/5ec27cc1e90e0...
[4] Amazon close food delivery business: https://www.engadget.com/2018-11-26-amazon-closes-restaurant...