Buy 1 Get 1 Free? Here’s Who’s Really Paying for It

Why Some Food Delivery Platforms Run on Losses But Still Grow Fast (Yes, they lose money now - but there’s a bigger plan.) Let’s be honest - Every time we order food online, there’s some discount or cashback and sometimes we get Buy 1 get 1 Free offer also!!!! We enjoy it, but the question remains…? How do these platforms survive if they keep giving offers and run in losses? Here’s what I found in my research: 1. They are not chasing profit today, they’re building habits. By giving offers, they want users to order regularly - turning a luxury into a habit. Once people get used to it, they stick around, even when offers reduce. 2. They are investing in logistics. They spend heavily on delivery networks, training riders, and improving delivery speed. This infrastructure will help in the future not just for food, but for groceries, medicines, etc. 3. Cloud kitchens = future-ready model. Many platforms now support or run kitchens made only for delivery. These save money on rent, staff, and interiors and help serve more customers at lower costs. 4. Data is their real power. They learn about your eating patterns, timings, locations, and preferences. This helps in better ads, offers, and business decisions later. So yes, the losses look bad now. But the real goal is long-term control over the market and consumer habits. Lesson: Sometimes businesses lose money on the surface… but gain value under the surface.

Disclaimer: This post is based on general research and personal understanding of how some food delivery businesses operate. It is not connected to any specific company. The aim is only to explore and learn more about real business models.