Takeaway delivery services, the type of business once run by underemployed taxi drivers, is now the hottest lossmaking disruptor since the last hottest thing. But visitors to Milan or other great foodie cities will be impressed to see that even Italians famous for their home cooking skills are happy to get food Deliverooed. Now that the Uber IPO is out of the way, investors are throwing buckets of cash into the companies they believe will win the quest to deliver stuff the last mile to consumers. Amazon, in its relentless quest to deliver you stuff all the time, is paying out $575 million for delivery service Deliveroo. It will likely use this money to try to bury Uber Eats and other competitors. But food delivery has a lot of local as well as international players, and that means scale won't be so easy to hit: there's Just Eat in London (and in Ireland), Delivery Hero in Germany, and takeaway.com in Amsterdam. Go to Asia and there's GrabFood, Brazil has iFood, there's Zomato and Careem Now in the Middle East, Mr D Food in South Africa and one can find other nascent lossmakers by searching Google for "the Deliveroo of Africa" or "the Uber Eats of Latin America". "Deliveroo did not disclose what valuation it raised the $575 million at on Friday but reports have suggested that the company thinks it's worth $3 billion -- $4 billion," reports Forbes. "Deliveroo more than doubled its revenues to £277 million ($352 million) in 2017. However, it also saw losses before tax surge to nearly £185 million ($235 million)."
Tesco Bank is pulling out of the UK mortgage market and will consider selling off its loan book. "In recent years, challenging market conditions have limited profitable growth opportunities," Tesco Bank's Mr Mallon said. "Our focus is on how we best serve Tesco customers and align our resources effectively to their needs while ensuring that our offer remains sustainable in the long term." He also moved to reassure Tesco's existing mortgage borrowers by saying "our priority in any sale" of the loan book "is to complete a commercially acceptable transaction with a purchaser who will continue to serve our customers well."
The banking editor of the Financial Times suggested recently that Goldman Sachs should acquire Deutsche Bank and expand its transactional banking activities. And that's not going to happen. Instead Goldman is acquiring Deutsche's competitors, including most recently Elinvar, a Berlin fintech that helps banks transition digital players. Led by former Deutsche Bank employees, Elinvar has also attracted backing from Finleap, the software-focused investor behind such other new German players as Penta and solarisBank. "The three-year-old firm has built a digital platform to enable lenders to offer their services online," says Bloomberg. "Its customers include German banks M.M.Warburg & Co., Donner & Reuschel AG and Fuerstlich Castell'sche Bank, all of which were established more than 200 years ago."
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