Competitive IntensityIntensified competition from large retailers and delivery platforms such as Amazon, DoorDash, and Uber could erode market share and pressure future growth and profitability
Regulatory Cost HeadwindsMinimum pay regulations in major urban markets raise delivery costs for consumers and increase operating expenses, which could reduce demand and further squeeze gross margins
Unit Economics PressureAnalyst notes that the partnership with another delivery platform and reduced delivery fees likely lowered average order value and weakened unit economics, creating margin pressure