Ultra-fast delivery startups are either folding up or leaving markets, exiting the scene just as quickly as they arrived.
Another sign of potential turmoil for these unprofitable companies? Those that stick around continue to rely on giving users freebies. So far, they haven’t been able to convince customers to pay the full cost of delivery in 15 minutes or less. And while more established delivery players like Uber have been able to rely less on discounts in a pivot toward profitability, the ultra-fast delivery startups are trying to grow amid a volatile market in which both investors and customers are growing more wary of opening their wallets.
Nearly 30% of delivery orders from GoPuff, which is the biggest ultra-fast delivery player in the US, were discounted as of April, according to data from YipitData, a research firm.
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Originally published on Quartz : Original article