Hong Kong’s food delivery battle intensifies as Deliveroo launches subscription service to fend off Foodpanda and Uber Eats
1.British company launches monthly subscription service with no delivery fees
2.Food delivery orders in the city estimated to be less than 100,000 per day
Competition is getting hotter in Hong Kong’s frenzied food delivery business with one of the sector’s biggest players launching a monthly subscription plan for the city’s food lovers.
The plan offered by Deliveroo starts in Hong Kong on Thursday. All delivery costs will be waived if customers sign up for the HK$98 (US$12.50) monthly service.
Kanis Leung (Published: 9:00am, 11 Apr, 2019)
Questions
a.What type of market structure best describes the food delivery in Hong Kong?
b.Use a diagram to explain under what circumstances a price reduction strategy can boost the sales of Deliveroo.
c.Comment on whether the operation model on price reduction can increase the revenue of Deliveroo
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