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Deliveroo's losses widen to £232m

Graham Watson

3rd October 2019

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A nice article here to get you thinking as either economist or Business Management student about how Deliveroo can stay in business despite making a £232m loss despite "doubling its operation". Key numbers: Sales up 72% for 2018 to £476m. A slowdown on the 116% growth a year earlier. Losses also increase from £232m to £199m.

You might think about the objectives of the firm, its shut-down point, the notion of contribution to fixed costs and so on. Does it look like a successful business to you? Why? Why not? Or are some of these new tech companies benefitting from their lenders not being aware of the sunk cost fallacy. Lots to ponder.

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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