What changes in the Greek delivery with the acquisition of Wolt

Of George Lampiris

Wolt will henceforth move without drastic interventions in its operating model, after its acquisition by DoorDash, something that the company itself stated after the announcement of its acquisition by the second, with a price that reached 7 billion euros.

This practically means that the Wolt brand name in Greece, as well as in the other markets in which it operates, will remain the same, the color palette of the logo as well as the character of its activity unchanged, in combination with the technology applied so far by the ordering platform. .

An important parameter that will be strengthened through this movement in the market, is that Wolt will further develop in this way in addition to food delivery and its position in the market through Wolt Market, through which it currently operates in Attica. .

The main features of Wolt Market are that it distributes food, fresh fruits and vegetables, packaged foods, personal hygiene items, cleaners, stationery with an available code of 2,000 products and deliveries from 09.00 to 00.00.

In fact, the plan is outside Attica, which operates with darkstores in New World and Maroussi, the further expansion in the basin and nationwide.

In this case, of course, one can realize that the balances for the traditional supermarkets will gradually change, if we realize the entry of a company like DoorDash in the Greek market.

DoorDash: The largest player in the distribution of food and food in the US

DoorDash is currently the largest food distribution company in the United States, with a share of over 56%, while its share in the grocery distribution exceeds 60% serving 450,000 merchants, 20,000,000 consumers and partnering with 1,000 .000 distributors based on data by the end of 2020. Its founders in 2012 were Stanford University students Tony Xu, Stanley Tang, Andy Fang and Evan Moore, who collected customer ratings through a mobile application for small businesses when the owner of a macaroni store (macaroon cookies) asked them for help to use the power of technology in delivering his orders.

In January 2013, Stanford’s company released PaloAltoDelivery.com in Palo Alto, California. The first customers were mostly Stanford students.

In the summer of 2013, they received $ 120,000 in funding from the Y Combinator fund in exchange for 7% of the company’s shares. DoorDash was created in 2013.

In December 2018, DoorDash overtook Uber Eats to take second place in total U.S. food delivery sales, behind GrubHub.

At the beginning of 2019, DoorDash was now the largest food delivery provider in the US, maintaining its leading position to this day.

In fact, about a year ago, in October 2020, the company created its first physical store in collaboration with the Bay Area restaurant group, presenting a new concept in Oakland, which offered exclusive delivery through DoorDash.

In 2020, DoorDash had revenue of $ 2.88 billion with net income of $ 460 million.

Wolt in Greece and the strong competitor called e-food

Wolt currently employs distributors – freelancers in our country, either at the beginning of its activity, or with an acquisition title.

The company has a variable pay policy per order – depending on the time and day – for freelancers which amounts to 2.9 euros on weekends and daily starts in the morning is 2.10.

During the day it amounts to 2.30 and then to 2.50 euros. In addition, distributors receive 0.60 euros per kilometer as compensation for the consumption of gasoline from the second kilometer onwards, from the moment they receive the order from the store until the moment they deliver it to the customer’s door.

Gasoline compensation is granted for a straight route, even if the route is for example circular and therefore the distance traveled is longer.

Thus, for example, if a distributor travels a distance of 5 kilometers and the distance calculated in a straight line is 3 kilometers, he will be compensated for the gasoline he spent based on the distance in a straight line, ie that of 3 kilometers.

Through the acquisition by DashDoor, Wolt in the Greek market has the opportunity to take advantage, among other things, of the momentum resulting from the increase of orders through delivery due to the pandemic, while at the same time with strong capital adequacy from DashDoor will have the opportunity to strengthen its size from 12.8 million euros in 2020 with a net profit of 282.8 thousand euros in significantly higher performance.

Recall that at the same time, the reputation of its great competitor e-food has been severely damaged due to the recent outcry that followed the announcement of the intention to change the contracts of indefinite duration, to some, something which was then called to withdraw.

In terms of performance, e-food in 2020 had a strong growth from 43.17 million euros in sales in 2019, to 64.48 million euros with net profits from 16.8 million euros to 21.4 million euros.