This Week in Food Delivery & Quick Commerce (24/02/24)
Hi all,
The new edition of the newsletter is out!
Highlights:
Delivery Hero terminates talks on sale of foodpanda
UK drivery drivers plan to strike every Friday
Grab reports first ever quarterly profit
Flipkart might acquire Dunzo
M&S puts payment to Ocado on hold over poor performance
If you have any questions or feedback, you can always reach me at alex.foodeli@gmail.com or on Twitter at @a_jordanov
I have a request:
If you like the newsletter, please consider sharing it and helping me reach wider audience that may benefit from it
💬 Quote of the Week
“For years, there was a sense of inevitably about third-party delivery, and then there was Domino’s. The brand’s scale and fleet of drivers allowed it to sidestep the category and its often-messy implications. But in the summer of 2023, Domino’s changed course by inking a deal with Uber Eats and Postmates, starting with a four-market pilot slated to stretch nationally by year’s end.
Papa Johns CEO Rob Lynch mentioned in May 50–60 percent of the company’s third-party marketplace business was incremental, and he lauded aggregators’ ability to supplement the chain’s labor pool during peak stretches. Pizza Hut president David Graves noted in May as well that, in early 2022, the brand witnessed roughly five transactions per store per week through third-party. By the end of the year, it was up to nearly 50.
However, what made Domino’s decision unique was, as part of the agreement, Uber Eats signed on to be the exclusive platform in the U.S. until at least 2024. Customers are still able to use the Domino’s Tracker through the Uber Eats app, orders are delivered by uniformed Domino’s drivers, and Uber One and Postmates Unlimited members receive deliveries with no charge.
Research and analytics firm M Science looked into the partnership between Domino’s and Uber Eats. Since its November launch, early indicators suggest share of sales remains modest, the company found, but Domino’s is, in fact, attracting new customers.”
Source: QSR
📊 Infographic/Stats of the Week
Our data shows that in January 2024, observed sales for major meal delivery services grew 7 percent year-over-year, collectively.
Source: Bloomberg Second Measure
🚚 Deliveries
Delivery Hero terminates talks on potential sale of foodpanda business in Southeast Asia
Deliveroo, Just Eat and UberEats drivers plan to strike every Friday over pay
Uber Eats is launching a delivery service with Cartken’s sidewalk robots in Japan
DoorDash to settle California privacy violations for $375,000
Wolt couriers are self-employed rather than employees, rules Finnish court
Grab Users Boost Digital Bank Adoption as Delivery, Ride-Hailing Businesses Recover // Grab Plunges After Poor Outlook Clouds First Buyback Plan // Singapore's Grab debuts share buyback of up to $500m but will be 'cautious'
Domino's taps Uber Eats for its deliveries in Nairobi and Mombasa
Swiggy Joins Hands With IRCTC To Offer Pre-Ordered Meals At Select Railway Stations
Alibaba and Meituan back new Chinese AI startup valued at $2.5 billion valuation
🚀 Q-Commerce
Zomato plans D2C expansion of Blinkit to compete with ecommerce giants
Flipkart has weighed acquiring Reliance-backed instant delivery startup Dunzo
Instacart Links With Quest Diagnostics to Reduce U.S. Food Insecurity
🍳 Dark Kitchens / Micro Kitchens / Virtual Brands
Ghost Kitchens India Sizzles with $5M Series A Funding, Aims for Culinary Domination
Marc Lore’s startup aims to take bite out of food delivery market
💰 Financing / Exits / Acquisitions
Ghost Kitchens India Sizzles with $5M Series A Funding, Aims for Culinary Domination
Amsterdam’s Sparqle secures €1.2M to drive emission-free last mile delivery
💻 Other
Uber Sues Insurer for Refusing to Cover NYC Drivers in Crashes
Farfetch to cut up to 30% of workforce as Coupang takes over
Coupang to join major business lobby amid feud with umbrella union
Rise of fast-fashion Shein, Temu roils global air cargo industry
📜 Deeper reads
When your food comes via a delivery app, the exploitation is baked right in
Actual vs. theoretical food cost variance: Why does it matter?
Is Domino’s Decision to Try Third-Party Delivery Paying Off?
Grab Targets Organic Growth, AI Tools in Path to Profitability
You’re on the free list for This Week in Food Delivery & Q-Commerce. To support us, please spread the word