The European Commission has launched an antitrust investigation into Delivery Hero and its subsidiary Glovo, suspecting the food delivery giants of participating in an illegal market-sharing cartel that could stifle competition across the continent.
Market Dynamics and Industry Pressure
The online food delivery space has always been fiercely competitive, with thin margins demanding strategic positioning and a race to secure the top (or second) position in the market to have a chance of building a viable business.
A Sector in Correction
Add to that, after a brief surge in usage of food delivery apps during the 2020-2021 coronavirus pandemic, the sector has been undergoing a tough period of correction, with bouts of consolidation, market exits, layoffs and startups getting shut down.
This report was updated with a link to Delivery Hero’s statement.
