The saying goes that “tombs are full of sumptuous dinners”, and Few startups have enjoyed the venture capital feast that venture capital companies have enjoyed. delivery in recent years, making the permanent burning of money to subsidize deliveries a habit. Because we already know how this is going: we invest exaggerated amounts of money in our own growth and we will see about profitability the day after tomorrow.
With venture capital coming to a screeching halt and recession drums pounding, history began to change. Gorillas closing their doors in Spain less than a year after their arrival is a symptom. your rival Getir, announcing layoffs for 14% of its staff in several countries, including Spain, too.
Batacazo for Q-commerce, corrective for the rest
The ‘rider law’ approved a year ago resulted in the exit of Deliveroo from the market and with Glovo lengthening the hiring until turning the tables to become a mere mediator in legal eyes, thus avoiding the employment relationship that was required by law to hire self-employed workers. Glovo itself announced 475 million euros in losses for 2021 and a negative EBITDA forecast for this year: 330 million more operating losses.
A business where almost nobody is profitable, it depends on venture capital and work is often avoided
With the pandemic being met by the United States (and others) printing money, inflation and interest rate hikes arrived. With venture capital frozen or being reduced due to this increase in rates and the uncertainty about the global economy, these models, which have always been hand in hand with controversy due to their labor relations, are in danger. They lost their usual support.
The Q-commerce, that of deliveries in less than fifteen minutes, more of the same. gorillas came with well meaning promises, but the road to hell is paved with good intentions. Nor is Getir on a great path with the aforementioned layoffs. Maybe it’s that we don’t need ultra-fast deliveriesand if we need them as something extremely punctual, we have to pay it at another price so that the beach bar is profitable.
On a much happier side of history, and riding solo, Just Eat, which has been in business for years and demonstrating its ability to be profitable… at the same time that it has a different model from that of Glovo or Gorillas, but that results in labor for its delivery men. He even confronted Glovo and Deliveroo to ask for an end to the use of false self-employed as delivery people.
British on the sidelines, the deliveryan icon of the 1910s with motorcycle delivery men crossing the cities, shows its seams more and more clearly.
Discontent is widespread, as summed up by the journalist from The world Angel Jimenez: As a business it barely works (especially on platforms oriented to general delivery, not just restaurants), restaurants lose margins and increase volume it’s not always worth itand delivery people face harsh conditions that they are getting worse.