The chiefs of the world’s largest food delivery groups are watching the frantic fundraising by a new generation of instant grocery delivery apps with a mixture of envy and alarm, after investors poured $14bn into the emerging sector.
The heads of both Just Eat Takeaway.com and Delivery Hero warned of cut-throat competition, making it hard for anyone to make a profit. Their rivals at Uber and Deliveroo, however, are eyeing potential alliances with the new delivery apps.
The new apps, which include GoPuff, Getir, Gorillas, Weezy and Dija, among many others, are using their war chests to offer heavy discounts, a tactic used by the more established food apps as they battled for market share. The new apps also complicate efforts by Delivery Hero, Deliveroo, Uber and others to branch out into grocery deliveries, potentially a larger opportunity than delivering food from restaurants.
+INFO: Financial Times