In the News

Deliveroo's losses widen to £232m

Graham Watson

3rd October 2019

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.

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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