// STARTUP COMPARISON
Merqueo vs Thomas Cook
Merqueo failed in 2023 due to Unit Economics. Thomas Cook failed in 2019 due to Competition. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Merqueo | 🔥 Thomas Cook |
|---|---|---|
| Sector | Ecommerce | Ecommerce |
| Country | Colombia | UK |
| Founded | 2017 | 1841 |
| Died | 2023 | 2019 |
| Raised | $50M | Public company |
| Peak | $50M raised | £1.6B revenue · 19M customers |
| Primary Cause | Unit Economics | Competition |
// WHY EACH FAILED
🔥 Merqueo
Unit Economics
Merqueo built an online grocery delivery service operating in Colombia, Brazil, and Mexico. After raising $50M it expanded aggressively to three countries before achieving sustainable unit economics in its home market. Delivery costs, high perishable inventory waste, and low average order values in the Colombian market made scaling unprofitable. Merqueo shut down Colombian operations in 2023.
// LESSON
Online grocery requires a minimum basket size to cover delivery economics. If your target market's average household grocery spend doesn't support the required basket, the model doesn't work regardless of execution quality.
Online grocery requires a minimum basket size to cover delivery economics. If your target market's average household grocery spend doesn't support the required basket, the model doesn't work regardless of execution quality.
🔥 Thomas Cook
Competition
Thomas Cook, founded in 1841, failed to adapt its package holiday model to online distribution. Booking.com, Airbnb, and direct airline booking eroded margins for a decade. The company carried £1.7B in debt. A £200M rescue package fell through in September 2019. It ceased operations leaving 600,000 customers stranded abroad — the UK's largest peacetime repatriation.
// LESSON
Longevity is not a moat. 178 years of brand equity does not survive a decade of ignoring digital distribution. The internet does not make exceptions for heritage brands.
Longevity is not a moat. 178 years of brand equity does not survive a decade of ignoring digital distribution. The internet does not make exceptions for heritage brands.
// EXPLORE FURTHER