Reference no: EM133171726
Fight for food (delivery) The food delivery business is currently going through a vibrant transformation. During the COVID-19 pandemic, many people preferred (and were allowed or even encouraged by their employers) to work from home. It is not surprising that this was a boon for food delivery companies, which saw a rapid growth in both volumes and incomes.
Yet, before the pandemic, the market was scattered, with companies often operating only locally in their national markets. The competition was uneven; companies in some countries reached considerable market shares, while in others the companies were competing over consumers fiercely.
Altogether, it is not surprising that we have witnessed a major reorganization and M&A activity in the industry after 2020. Just to mention a few notable mergers and acquisitions: Uber Eats bought Postmates, Just Eat merged with Takeaway, DoorDash bought Wolt and many others.
1) What the drivers are of this transformation. Where are the synergies and cost savings coming from? What are the benefits of larger market shares?
2) How difficult it is for food delivery companies to combine their operations. In your answer, consider various employment contracts in various countries, the business models which the delivery companies use as well as their IT systems.
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