KL: The only competitor has left – Wolt removed the fixed discount
Wolt has announced the removal of its fixed 30% discount on service fees, introducing a dynamic discount system set to take effect on March 6.
Finnish food delivery company Wolt is changing the terms of its subscription service by eliminating the fixed 30% discount on service fees. Instead, the company will implement a dynamic discount system which will take into account the size of the order and the distance from the seller. As stated in a report by Kauppalehti, if the order is small and the delivery distance is short, customers could receive a discount of up to 50%. Conversely, larger orders or longer distances may result in a discount lower than the current 30%. This change is scheduled to take place on March 6, while the subscription fees will remain unchanged.
Wolt's only competitor in Finland was Foodora, which announced earlier this year that it would cease operations in the country by the end of February. This means that Wolt’s adjustment to its discount structure will come shortly after Foodora exits the market, potentially leaving Wolt without competition for the time being. Analysts speculate that Wolt’s temporary monopoly could affect pricing strategies in the Finnish food delivery sector, particularly during economic uncertainties.
As Wolt consolidates its market position, the dynamic pricing could lead to increased customer satisfaction from tailored discounts, but it also raises questions about long-term pricing stability in the market. The move may set a precedent for how food delivery companies operate, especially in less competitive landscapes, thereby influencing consumer expectations and behaviors in the future.