FT News Briefing Investors to delivery apps: where’s my profit?
Jun 4, 2024
US immigration rules are tightening at the southern border, prompting debates on policy effectiveness. In India, the stock market is soaring ahead of an expected victory for Modi. Food delivery apps are facing a profit crisis with substantial losses as they adapt to shifting consumer habits post-pandemic. Meanwhile, a major scandal linked to the Qatar World Cup raises questions about corruption in the European Parliament, highlighting the urgent need for reform in light of upcoming elections.
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Profitability Challenges for Food Delivery Apps
- Food delivery apps face challenges achieving profitability, accumulating substantial losses.
- Investors demand new business models as losses mount despite high demand during the pandemic.
Factors Impacting Food Delivery App Profitability
- High setup costs, pandemic-driven demand shifts, and rising interest rates have impacted delivery app profitability.
- Investors now prioritize returns, urging sustainable business models beyond reliance on investor cash.
Strategies for Food Delivery App Profitability
- Delivery apps explore grocery delivery, advertising, cost-cutting, and market consolidation to improve profitability.
- Analysts are optimistic about the future of delivery services, noting potential for growth and diversification.