This Week in Food Delivery & Quick Commerce (22/07/23)

Hi all,

As always, primarily, I urge you to support the Ukraine humanitarian efforts.

Highlights:

• Getir is closing its UK warehouses & raising new funds

• Dunzo lays off more employees & seeks new financing

• DeliveryHero acquires HungerStation in full

• Ocado returns to underlying profit

If you have any questions or feedback, you can always reach me at alex.foodeli@gmail.com or on Twitter at @a_jordanov

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💬 Quote of the Week

“The British arm of Turkish speedy grocery company Getir has been auctioning off bikes, helmets and fridges as it attempts to tame major cashflow issues. It’s also been asking for volunteers from its London office to go door-knocking with discounts and free merch in an effort to increase sales.

Getir, the remaining leader of Europe’s once-hyped speedy grocery sector, has raised $1.8bn in venture funding to date from investors including Tiger Global, Sequoia and Mubadala, but has been struggling to make its business model add up and has pulled out of several key markets in recent months.”

Source: Sifted

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📊 Infographic/Stats of the Week

As the chart noted, DoorDash, Uber Eats and Grubhub far outpace other sector players’ consumer usage rates, and they have for quite some time. DoorDash holds a 74% usage rate among consumers and has held above 70% since late April 2022. Although Uber Eats was within 10 percentage points of first place at the beginning of our data set, that gulf has widened to a more consistent 20 percentage points, hovering around 50%, albeit with volatility. Grubhub rounds out the sector leaders but has settled around 37%.

Source: PYMNTS

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🚚 Deliveries

• DoorDash Adds Self-Serve Integration Onboarding as Aggregators Compete on Selection

• DoorDash Banned Discussing Work Issues and Fired Worker For Organizing, Labor Board Alleges

• Court rules against Uber in major win for California workers

• Uber Eats drivers in South Africa are unionizing

• Vroom Delivery & Uber Partner to Improve C-store Options

• Germany's Delivery Hero Acquires Saudi Arabia's HungerStation For $300M To Expand Presence In MENA Region

• Mastercard Ordered to Pay Delivery Hero $44 Million by UK Court

• Wolt Announces New Business Unit in Hungary

• Denmark's Wolt couriers face years-long wait for injury compensation

• Swiggy Introduces New AI Feature For Personalised Recommendations

• Swiggy launches unique tool for restaurants to expand outlets, 100 onboard

• Rappi targets big fast-food chains to beat iFood

• Food delivery giant Meituan adds more video features to app as Douyin marches into its market with Starbucks and Haidilao

• Meituan invests in Chinese large language model company Zhipu AI

• LINE MAN Wongnai acquires FoodStory, a Thai startup specializing in restaurant point-of-sales (POS) systems

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🚀 Q-Commerce

• Getir is closing its UK warehouses

• Getir has launched a new fundraising round in the UK, as it looks to calm rumours about potential insolvency

• Dunzo lays off more employees amid cash crunch

• Dunzo seeks $20 million additional investment from Reliance Retail

• Ocado jumps on return to first-half underlying profit

• AutoStore and Ocado reach deal to settle patent litigation claims

• Schnucks to deploy new versions of Instacart’s smart carts

• Co-op and Starship Technologies autonomous grocery delivery service is expanding across Leeds

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🍳 Dark Kitchens / Virtual Brands

• Foodology, the cloud kitchen startup, announces US$17 million in funding

• Applebee's and IHOP Turn to Ghost Kitchens for International Growth

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💰 Financing / Exits / Acquisitions

• ONE MOTO secures $40 million investment

• Foodology, the cloud kitchen startup, announces US$17 million in funding

• Ex-Gojek executives' two-wheeler EV startup MAKA Motors raises $38m seed round

• Austrian founders raise 10 million euros for their e-bike startup

• Kitchen robot Botinkit raises $13M from DJI angel and others

• Kaso raises $10.5m in seed funding round

• Rice Robotics picks up $7M, powers SoftBank's office delivery

• YallaHub raises $6 million pre-Series A round

• LINE MAN Wongnai acquires FoodStory, a Thai startup specializing in restaurant point-of-sales (POS) systems

• UAE-based startup, Growdash, secures US$750,000 pre-seed funding for restaurant tech platform

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💻 Other

• Grab confirms acquisition of SG taxi operator Trans-Cab

• Asian tech rivals pare back ‘superapp’ approach as losses mount

• Toast axes 99-cent fee

• Goodfood Market shares up after reporting $1.2M Q3 loss, improved margins

• Amazon is set to shut the doors to three of its Fresh convenience stores later this week

• Delhivery set to enter into on-demand logistics space

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📜 Deeper reads

• Here’s how Uber Eats, DoorDash, and Grubhub rank in the food delivery wars

• Britain’s Food Industry Thinks It’s Over the Worst on Inflation

• Getir calls on staff to go door-to-door with goodie bags as cashflow problems persist

• DoorDash Beats Out Uber Eats and Grubhub in Food Delivery Race

• Google and Reliance-Backed Dunzo is Battling the Tides: On Brink of Collapse?

• The number of people doing gig work on apps like Uber and DoorDash more than doubled during the pandemic

• Ocado Half-Year Results – What The Analysts Said

• Local Authorities’ Sustainable Cities Goal Clash With Grocery Delivery Rides

• Friday Feedback: How are you thinking about virtual brands?

• Fighting obesity the wrong way?

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