"App-based food delivery platforms risk hubris in their high-flying promises about business performance. As loss-making platforms, they look like ‘Icarus in a coma' – they still count on (venture) capital investors keeping them alive. Based on a scrutiny of business reports in conjunction with secondary research, this chapter maps and comparatively analyses three platforms: Delivery Hero, Just Eat Takeaway and Deliveroo. Heuristically linking strategic corporate research with the power-resource approach, it is found that network effects are the Achilles' heel of platforms, which can be challenged by courier associations and trade unions at operational level, whereas some institutional power is largely in the making in command-and-control structures. App-based food delivery is progressing towards consolidation in Europe, with performance indicators showing progress, although still under-delivering by traditional business benchmarks. Funding from shareholder equity or debt financing is therefore still vital for the platforms in today's investment climate."

Support: Paper