Deliveroo shares drop 30% on UK IPO listing

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.

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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 ...)

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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.

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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

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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 ;)

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