No one has ever made a decent return from online food delivery. Now a rash of start-ups are running out of road.
Read the full article on The Times website (PayWall)
NAM Implications:
- Online fulfilment has never broken even.
- (even click & collect merely passes some of the cost onto the consumer)
- One possible exception being Amazon currently, now they have achieved saturation coverage…
- With deliveries ‘locked in’ at £5/drop, max, difficult for retailers to improve finances.
- (Online was an idea too big not to embrace from a stock market POV)
- The future? Consolidation, around Amazon unless a worthwhile rival emerges…
