Feb 13 • 12:58 UTC 🇫🇮 Finland Yle Uutiset

A new player fills Foodora's place, believes expert

An expert suggests that Wolt likely outperformed Foodora in Finland's restaurant delivery market.

Foodora's exit from Finland's food delivery market appears to be linked to its inability to effectively cater to restaurant partners, as indicated by Kimmo Karhu, an assistant professor at Aalto University. Karhu notes that the food delivery sector is characterized by a three-party market involving consumers, delivery services, and restaurants. In this context, he believes that Wolt has gained a significant advantage by establishing strong collaborations with restaurants early on in the competition.

Karhu emphasizes the critical role that restaurants play in determining the success of delivery services, explaining that they hold substantial influence over which players thrive in the industry. While he refrains from speculating on the reasons behind Foodora's declining popularity among restaurants, he points out that the market dynamics favor those who establish a dominant position; in 'winner takes most' markets, the leading service captures the lion's share of the business operations, leaving others struggling to compete.

This situation raises important questions about the sustainability of food delivery services and their relationships with restaurants in Finland. Given the competitive landscape, the ability to forge strong partnerships with restaurants could be key for future players in the market, especially for those looking to fill the void left by Foodora's withdrawal. As such, the ongoing developments will be worth monitoring in light of their potential implications for both consumers and the restaurant industry as a whole.

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