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While revenues in the food delivery industry are growing very quickly, intense competition between the major players are driving margins to razor thin, or even negative levels when incentives are added. Because delivery is a product with little differentiation, consumers jump around to multiple different services and simply choose the lowest price. Because of this, it has thus far been impossible to build brand loyalty and bolster profits. Now, Uber Eats and GrubHub’s disappointing Q3 earnings results have thrown key IPOs at DoorDash and Postmates into limbo.

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