The turnover of two major food delivery platforms (Glovo and Bringo) decreased after stellar expansion during the pandemic period, while a third one (Tazz) posted a 19% growth rate consistent with the growth rates seen in traditional industries, according to Ziarul Financiar compiling public data.
Beyond sales declines, two of the players (Tazz and Bringo) also reported losses.
Bolt Food is also active in the market, but its results are recorded and consolidated on the same company as those of the ride-sharing company Bolt, so the evolution could not be calculated only in the delivery area.
Notably, the advance of private consumption took a break in 2023 to resume growth in 2024.
On the downside, the mood in the IT sector, which generates a significant part of activity for food delivery applications, has deteriorated.
Bringo expects its revenues to remain constant this year, compared to 2023, and sees this as an achievement.
In any case, the hype for home delivery, visible during the lockdown and during the predominantly work-from-home period afterward, diminished. The financial pressure inherent to the business model based on sharp expansion may generate more problems for home delivery companies in the coming years.
(Photo source: Albertophotography/Dreamstime.com)
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