Food delivery wars

Multiple companies are now heavily invested in serving us food as fast as possible. With low margins, lots of food establishments, enough competition and millions of people to feed.

There is so much competition going on;, deliveroo, foodora,,, ubereats and small businesses that just deliver themselves. Were not done yet, then you have Hellofresh, marley spoon and the allerhande box from Albert Heijn. Obviously the big cash rich Albert Heijn has some mayor advantages. It would not surprise me if other chain stores in Netherlands would also enter the market. Again it is a crowded market.

They will all tell they are unique in some way. Just the basic concept they all do the same thing, delivering you the food you want. Some are probably going to lose because of their margins, some because of minimal purchasing order (you need a minimum order of 15 euro’s of food, which is high. I easily buy groceries for 10 euro’s for the evening and I’m good) . Others will go down because the costs exceeded their profits. Like deliveroo, delivery hero (foodora), uber and thuisbezorgd, these companies have no cash what so ever, all the money is from investors with interest (probably). Most investors want to see some positive returns within 90 days. They have enormous revenues but no profits.

Albert heijn probably could outperform them with ease in 5 years, if they put some effort into it. How? Making the deliveries within 10 or 20 minutes, maybe even shorter. They have lots of stores, around almost every corner in the Netherlands. Logistically they have a huge advantage over the others.

Thuisbezorgd has been around since the year 2000 and they still haven’t turned a profit or didn’t wanted to. What does this tell you?

What if the enormous fast food chains (like McDonalds) with BIG cash reserves decide to make a joint venture with a logistics company. That would be nightmare for the thuisbezorgd, deliveroo and the foodora’s.

If supermarket or the fastfood chainstores want to branche out, which they could easily do and make a joint venture with a logistics company like postnl or ups, the food delivery wars would end very soon. Think about it. Why would they not want to enter this market also?