This Week in Food Delivery & Quick Commerce (24/12/22)

Dec 25, 2022

Hi all,

Happy holidays from me. As always, primarily, I urge you to support the Ukraine humanitarian efforts.

Highlights:

Uber Eats & Meijer partner

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💬 Quote of the Week

“Company founders have entered into debt-focused deals such as bridge loans, structured equity, convertible notes, participating bonds and generous liquidation preferences. These moves are designed to avoid a dreaded “down round” — accepting funding at a far lower valuation than a company had previously secured. […]
As the market rout looks set to continue into next year, this person said that even founders of well-capitalised tech groups have had to ask: “What are the adjustments [we need] so we can live longer, how can we punt financing from next year into 2024?” […]
SoftBank-backed delivery app Gopuff raised a $1bn convertible note in March and has explored plans to borrow more since then, despite raising more than $2bn last year, which had boosted its valuation to $15bn by mid-2021.
These deals come with a conversion premium, which allows their backers to convert shares at a higher price than an eventual IPO. Such deals represent a bet that the company will trade higher after going public.
Convertibles “kick the can down the road”, said Chris Evdaimon, a private companies investor at Baillie Gifford. “They are mostly being led by existing investors who are saying we also don’t want to get into this unpleasant valuation discussion right now.” ”

Source: FT

📊 Infographic/Stats of the Week

👉 Global Average App Rating: 4.6/5 | NPS: 70.6 --> Companies with scores below these will have to put a lot of effort to improve their ratings. I've been tracking similar data for micromobility and most below the average went out of business.

👉 It is important to note that all food/grocery delivery companies are setting higher standards that it would take a lot of effort to be on the top tier.

👉 Getir is still the top rated in Germany (4.8 | 90) followed by Flink (4.7 | 78). Getir is also the top rated in France (4.9 | 92). In both France and Germany, Getir has absolute dominance, with others trailing far behind in NPS.

👉 In the UK, Gopuff is the top rated (4.8) and also has the highest NPS (85).

Source: Prabin Joel Jones

🚚 Deliveries

🚀 Q-Commerce

🍳 Dark / Ghost Kitchens

Cloud kitchen firm Matbakhi launches in Saudi Arabia, using hotel kitchen space

💰 Financing / Exits

💻 Other

📜 Deeper reads

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