June 28, 2017

Delivery wars: as another start-up raises money from investors is this the next tech bubble?



Woman hand accepting a delivery of boxes from deliveryman
Copyright: comzeal / 123RF Stock Photo

Deliveroo popularised the gig economy delivery model In the summer of 2016 it appeared that the battle to lead in the on-demand economy had been a foregone conclusion. Uber, Amazon and Deliveroo had all launched successful food and grocery delivery services operating under the gig economy. And funding for smaller rivals had started to dry up.

Uber and Amazon both launched delivery services in London in June last year. The ride-hailing firm started its UberEats service, dedicated to transporting food from restaurants across the city. And the online retailer began its same-day grocery delivery service Amazon Fresh. Two months later, Deliveroo raised $275m (£214m), helping it stay in the competition and elevating it to the fabled status of “unicorn”, businesses valued at $1bn.

The news spelt trouble for the plucky upstarts that had been hoping to compete for a slice of the on-demand delivery pie. By September, with investors losing interest in smaller firms, the health-focused Pronto announced it had run out of money and was shutting down.

Less than a year later, the tables have started to turn. Last week, Quiqup, a smaller company that delivers high street goods as well as food, announced it had raised £20m . A couple […]

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About NGE Staff 9118 Articles
The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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