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Postal Hub podcast

Jun 28, 2022

Professor John Colley from the Warwick Business School joins me to discuss the profitability of gig economy delivery and ultrafast grocery delivery (q-commerce). We discuss:

  • Who is swimming naked in the fast grocery delivery sector
  • The conditions that have led to funding flowing into grocery delivery startups
  • Inflation and other factors putting downward pressure on consumers' spending power
  • Investor funds drying up putting pressure on business models
  • Network effects: customers, riders/drivers, and response times
  • Ease of entering the ride hailing market (e.g. Uber), and implications for other similar business models, such as takeaway delivery
  • Profitability and competition
  • The cut major corporates have to take to meet overheads
  • When will customers be charged the actual cost of delivery?
  • Will gig economy delivery companies ever make a profit?
  • Regulating gig economy delivery services and impact on future profitability
  • Employees vs contractors, and impact on operating costs
  • Governments looking for taxable revenue
  • Funding consumers' champagne tastes on a beer budget
  • Labour shortages and impact on costs
  • Congestion, emissions, and availability of real estate for dark stores
  • Forecasts for the future of the gig economy model and rapid grocery delivery