More to the point, all drivers seem to use multiple apps. I often get my food in bags from the wrong company. The barrier to switching for drivers _and_ the customers is zero.
As a result this feels less like money spent on a unique strategy and more like money spent buying the business.
Uber Eats just changed their delivery price to be based on distance, which has vastly increased the average delivery fee, and the prices on Uber Eats are inflated over every other delivery platform because of the cut they take.
And in Melbourne CBD, by far the largest number of bikes I see are delivering for Easi.
Not sure that the market is actually struggling here.
But everywhere else Uber is still by far the leader. Foodora couldn't compete. Deliveroo is struggling and Menulog isn't really competitive given lack of marketing spend.
That was Moviepass’s theory too, it didn’t work out so well in practice. Once the price went up people simply stopped using it.
Maybe Uber is killing the market it is trying to monopolize and by the time it gets it all, the pricing it will have to practice to actually make it profitable will drive customers back to eating in person in the restaurant
In order for a new entrant to come in they need to grow both businesses and consumers at the same time. Which is hard with no competitors. But very hard with cash rich companies like Uber trying to stop you.
We saw this all play out in Australia where we initially had Foodora and Deliveroo. Then Uber joined with aggressive marketing and pricing. They pushed Foodora out and the number of businesses in Deliveroo is dropping. It is going to be a winner take all situation. At which point prices will rise and the profits will roll in.