Re:Deliveroo shares drop 30% on UK IPO listing
by fakedang on Wednesday March 31, 2021 @06:53AM
(#26645663)
Most of it is marketing, fighting legal issues and attrition of goods delivered / compensation. And also the insane discounts they have to provide to stay ahead of the competition. Airbnb is somewhat immune, since their only major competitors are old school hotels.
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Re:Deliveroo shares drop 30% on UK IPO listing
by rich_sasha on Wednesday March 31, 2021 @07:13AM
(#26645787)
Right, so “discount” implies they subsidise drivers for the journeys? Eg Uber charges $1 per mile but driver receives $1.1 or sth?
The org bloat is quite staggering for what is effectively a taxi app.
Re:Deliveroo shares drop 30% on UK IPO listing
by fakedang on Wednesday March 31, 2021 @09:05AM
(#26646722)
No no. I meant that the effective cost of a ride (paying contractor + tech costs + employee costs + marketing per ride) is $1 a mile, but they give a discount that makes it effectively $0.9 a mile, and doing this on scale is effectively making them run operations at a loss unless they have market monopoly. Even a duopoly situation is unfavorable for them.