| Hey all, it's Natalia in Brussels. The online food delivery sector has emerged as one of the few industries to flourish during the pandemic, as restaurants stay shut and people get tired of pasta. But will the coronavirus boost in orders be enough for these companies to finally turn a profit? This earnings season saw sales soar. Last week, when Uber Technologies Inc. reported its second-quarter earnings, it recorded a 103% jump in delivery revenue from the previous year—vaulting delivery sales higher than those of Uber's battered ride-hailing business for the first time ever. Meanwhile, Grubhub Inc.'s revenue ticked up more than 40% and its active diners for the quarter grew 35%. And Germany's Delivery Hero raised its 2020 sales forecast after orders nearly doubled during the pandemic. But Uber and Grubhub lost $837 million and $45.4 million for the quarter, respectively. And analysts expect Delivery Hero to lose more than $800 million for the year. Rising competitive pressure has changed the global delivery landscape. It's triggered waves of consolidation in the industry, and forced the hand of traditional marketplace companies like Just Eat Takeaway.com NV and its soon-to-be-acquired Grubhub. Traditionally, the Dutch company simply matched hungry customers to restaurants, and let the restaurants deliver themselves—a model that's allowed it to be more profitable than its peers. More recently, it's incorporated its competitors' model of direct delivery, despite the high costs. Both Just Eat Takeaway and Grubhub executives say the marketplace model (and skipping the actual delivery logistics) is the only one that will turn a profit. But they also say they have to invest in providing direct delivery to get access to restaurants that don't have their own services, thereby keeping customers happy. The pandemic itself has also created headaches for food delivery platforms. The new danger of everyday work has forced the companies to take steps to provide drivers with personal protective equipment, and the general economic slowdown will unfortunately lead to more restaurants closing up shop for good, paring back the number of potential clients. Some U.S. cities have also capped the commission fees, which can run up to 30% of each order, that platforms charge restaurants. Still, as virus fears linger, delivery looks like an increasingly irresistible option—during the lockdowns and beyond. Part of the platforms' marketing costs go toward convincing customers and restaurants to change their behavior, something the pandemic has fast-tracked. An industry rule of thumb says that if a customer orders three times within eight months, they're locked in as a food delivery customer. If my household's quarantine habits are any indication, then I'm guessing these platforms will gain a lot of converts.—Natalia Drozdiak | 
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