Deliveroo shares drop 30% on UK IPO listing

Re:Deliveroo shares drop 30% on UK IPO listing by fakedang on Wednesday March 31, 2021 @06:50AM (#26645650)

Which means there is no barrier to entry. The riders will go to any platform which takes a lower share of commission, since they are limited by the number of workable hours. And because restaurants host themselves on all platforms, there isn't any loyalty there. And customers go to platforms only looking for deals that cheapen the prices, since otherwise they have to pay 20ish% extra.

[ Parent | on HN ]

Re:Deliveroo shares drop 30% on UK IPO listing by coddle-hark on Wednesday March 31, 2021 @07:04AM (#26645736)

Also, network effects don't really compound outside of individual cities. Deliveroo being the best delivery service in Leeds doesn't make it more competitive in Manchester. A competitor can easily pop up, dominate a single city, and expand from there.

[ Parent | on HN ]

Re:Deliveroo shares drop 30% on UK IPO listing by johannes1234321 on Wednesday March 31, 2021 @07:09AM (#26645761)

There is a small network effect with (business) travelers: wherever I go I can use the same app to get dinner to my hotel room or conference center.

But that is of course a minority of customers, especially amid a pandemic. (But then again, with restaurants closed, for the ones who travel ...)

[ Parent | on HN ]

Re:Deliveroo shares drop 30% on UK IPO listing by fakedang on Wednesday March 31, 2021 @09:07AM (#26646752)

But then you're competing with hotels nearly all of which provide complimentary food, especially since things started getting competitive for them.

[ Parent | on HN ]

Re:Deliveroo shares drop 30% on UK IPO listing by fakedang on Wednesday March 31, 2021 @11:29AM (#26648528)

Correction: I mean business hotels and upscale hotels

[ Parent | on HN ]

Re:Deliveroo shares drop 30% on UK IPO listing by johannes1234321 on Wednesday March 31, 2021 @12:32PM (#26649337)

I don't have an insight what kind of selections they provide these days.

I assume they either cut kitchen staff and only have a very basic (boring) offering to cut costs or add some fantasy label to make use of their kitchen and offer delivery themselves as new revenue stream. Then the deliveroo rider could ride on the elevator instead of their bike ;)

[ Parent | on HN ]

Re:Deliveroo shares drop 30% on UK IPO listing by Marqin on Wednesday March 31, 2021 @07:02AM (#26645731)

That’s not enteirly true. In London all my favourite places are only on Deliveroo, and not on Uber Eats (at least in my area). Maybe the have some kind of exclusive contracts?

[ Parent | on HN ]

Re:Deliveroo shares drop 30% on UK IPO listing by eptcyka on Wednesday March 31, 2021 @03:55PM (#26652264)

I find that the Deliveroo prices are heavily inflated for some of my favorite places. And that the info number listed in a restaurant's info page allows one to call the restaurant directly and order the same food for significantly less.

[ Parent | on HN ]

Re:Deliveroo shares drop 30% on UK IPO listing by superzamp on Wednesday March 31, 2021 @07:32AM (#26645916)

It used to be this way in Paris as well until it wasn't, now almost all these restaurants are on Uber as well. It seems Eats can just pulverize these deals anytime they decide so.

[ Parent | on HN ]

Re:Deliveroo shares drop 30% on UK IPO listing by fakedang on Wednesday March 31, 2021 @07:05AM (#26645742)

Well somebody else's favorite places are on Uber Eats and not on Deliveroo then ;)

[ Parent | on HN ]