Tag Archives: sharing-economy

12 November 2022
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Apps, Business, Sharing economy

Why is all delivery food company still not profitable? and how they can attract investor?

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https://assets.brandinside.asia/uploads/2017/01/deli.jpg

There have a lot of delivery food company around the world but why they cannot make profitable but there are always investor ready to invest because they believe that someday a business will be able to make profitable.

How are these delivery food companies profitable? for example, delivery food company earnings come from deducting 25% of the ride fare. This mean that if the fare is 100 zloty, the driver gets 75 zloty, and all of these company get 25 zloty on the other hand the 25 zloty will go toward advertising, driver promotion, developer wages, self-driving car R&D, back office system, liaising with government in each country on legal matters, fight lawsuits and salaries of employees but it is less profitable.

On the other hand, why do investors still invest in this business ? for example this is Uber’s latest 4 quarter earning Q3 Year 2018, revenue around 2532 million dollar, loss around 835 million dollar, Q4 Year 2018, revenue around 2560 million dollar, loss around 751 million dollar Q1 year 2019, revenue around 2671 million dollar, loss 862 million dollar as you can see The profit is constantly increasing and there are still losses, making investors think that they can still make a profit and find a solution to the problem of losses of profitable.

In America when customer want to use delivery food service they have to spend a shipping cost, tip and cost of food but it make customer spend a lot of money for delivering 1 time that make they have to spend tip and shipping cost that makes this part of the cost almost equal to half the price of food and this isn’t worth for customer in America. In my opinion these food delivery companies might be difficult to do in the future because in this situation after COVID-19 pandemic people they didn’t work from home that make decreasing of profitable for those delivery companies. In the future, we have to see how these companies find the solution.

source:

Boom Time for Food Delivery Platforms, But Still Not Profitable (industryleadersmagazine.com)

https://en.m.wikipedia.org/wiki/Uber

https://www.businessinsider.com/uber-biggest-risks-according-to-wall-street-2019-8

https://www.pymnts.com/news/ridesharing/2018/uber-grab-sale-acquisition-profit-q1/

https://brandinside.asia/food-delivery-service-war/

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4 March 2016
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Collaborative consumption

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With the rise of social media, many predicted it to be the end of real life interaction; that everyone is doomed to a life of isolation and loneliness. But we as social beings, as our primitive instincts dictate, came up with this brilliant-brilliant idea of sharing resources as always. Just like we share our thoughts, ideas, pictures, personal information online, people resorted to share things they own but don’t use 24/7. A famous collaborative consumption example is the power drill. You don’t need a power drill 24/7/365, you just need the hole, wouldn’t it be nice to share it or rent it while it’s not in use!

Most of us would have used at least one or two sharing economy websites. Very popular examples are Airbnb, Couchsurfing and Uber.

So, the textbook definition of sharing economy or collaborative consumption is, it is an economic model based on sharing, swapping, trading, or renting products and services, enabling access over ownership. It is reinventing not just what we consume but how we consume.

Here is a video of Rachel Botsman, an expert in collaborative consumption explaining how it kicks bottom. In this talk, she mainly explains what is collaborative consumption and the types of collaborative consumption – redistribution markets, collaborative lifesyles, product service systems. She further discusses how collaborative consumption goes deeper than consumption itself, it reshapes the current model of consumption, reinforces the positive values of our society such as trust, individual identity and community bonding and makes way for sustainable living.

This helps us save money, socialize and be a good citizen. Now, if you want to join the sharing economy, here is the link to an article which lists out different areas of your life : books and media, transportation, travel, fashion, farming, living space, office space, parking lots and social lending and the websites under each category that facilitates the collaboration

http://www.torbenrick.eu/blog/strategy/disruptive-business-models-based-on-collaborative-consumption/

Top 15+ disruptive business models based on collaborative consumption

 

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