Softbank may get a winner and a loser in the food delivery market - Business Insider

Unlike its two big competitors, Grubhub has been profitable. But its CEO felt forced to duplicate some of the unprofitable practices of its rivals amid slowing growth.

SoftBank's Vision Fund, the brainchild of CEO Masayoshi Son, has used money as a weapon in an attempt to anoint winners in particular markets.DoorDash was on track to lose $450 million last year, not including taxes, amortization and depreciation, on about $1 billion in sales, according to a report in The Information.

Since its founding in 2004, Grubhub has focused on teaming up with small and medium-sized restaurant businesses, typically ones that already had their own delivery drivers. Grubhub essentially acted as a marketplace, creating a central spot where consumers had a lot of choice, and helping its restaurant partners take online and app-based orders.

But Maloney believes the days of the three big services all thriving in their own niches is over, as he told Business Insider in an interview late last month. "The green fields are over," Maloney said in the interview with Business Insider last month. "You have three heavily capitalized firms at scale. It's going to be a street fight until something breaks."Assuming the Journal's report is correct — Maloney did not respond to an email seeking confirmation — it looks like Grubhub may be the one that broke first.

Only till most of fast-food delivery services wise up and start delivering their own food like pizza places do.

México Últimas Noticias, México Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

SoftBank-backed Zume is laying off half its staff and shuttering its pizza delivery businessIt represents another black eye for SoftBank's Vision Fund, which has seen a number of its portfolio companies announce layoffs and executive changes over the last year. What a disaster SoftBank is having this year. Especially after the WeWork IPO debacle. Good grief.
Fuente: CNBC - 🏆 12. / 72 Leer más »

Portal A found success in bypassing the traditional ad agency model - Business InsiderHow 3 childhood friends with no ad industry experience became YouTube's longtime agency and created videos for Odell Beckham and Steph Curry
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »

Facebook deepfake policy could fall short - Business Insider - Business InsiderUnder Facebook's new policy, users cannot post videos that are manipulated through AI or altered in a way that is misleading to the 'average' person.
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »

HSBC is facing pressure in Hong Kong - Business Insider - Business InsiderHSBC faces backlash in Hong Kong after closing an account with funds used by Spark Alliance, and after police froze $9 million tied to the account. And also Hong Kong and Shanghai are part of the bank’s name.
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »

Next market crash: JPMorgan's top defensive sector, stock picks to buy - Business InsiderJPMorgan's equity chief explains why an unloved corner of the market has become your best defense against a crash — and lists the group's 10 best stocks to buy
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »