[simplertms]

The issue is that there is a race to the bottom in terms of price. Effectively chasing margins in an already margin squeezed industry.

If you think about what a food delivery platform is doing - they are trying to service convenience for customers - they need to deliver on speed at the lowest cost possible. How do you do this when your task is labour intensive and there are few barriers to competitors? You’ve got to drive price down.

Likely there will be a period of consolidation until one service rules a region and then maybe a slow grind back up to profit.