This Week in Food Delivery & Quick Commerce (16/03/24)
Hi all,
The new edition of the newsletter is out!
Highlights:
EU backs watered-down labor plan for gig workers
Deliveroo with solid guidance for 2024
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💬 Quote of the Week
“Consumers who use BOTH mobility and delivery services - 34% of Uber’s consumers - are likely to spend X3.4 on the Uber platform than those who use either mobility OR delivery. It makes sense that increased usage is brought by increased loyalty, and therefore leads to increased spend. As cross-platform acquisition costs are as much as 50% lower, it is clear that Uber’s goal is to encourage multi-product(ness).”
Source: #movingpeople
📊 Infographic/Stats of the Week
The big takeaway: While the aforementioned companies are seeing healthy growth in their ad businesses, they’re still in the process of assessing what works and what doesn’t.
Users aren’t thrilled about receiving ads in their push notifications, as Uber quickly discovered—but they are more receptive to partnerships where the promotion is embedded into the native app experience, like the Lyft campaign for the latest “Trolls” film that replaced the company’s car icons with movie characters.
And less is more: Uber and Lyft are capping ads at one and two per trip, respectively, while DoorDash and Instacart are focusing on endemic brands to avoid putting off shoppers.
Source: Insider Intelligence
🚚 Deliveries
EU Backs Watered-Down Labor Plan for Uber, Deliveroo Workers / EU states agree to regulate Deliveroo, Uber workers' rights / EU to treat 5.5 million Deliveroo, Uber Eats, Bolt and other gig economy workers as employees after Belgium breaks deadlock
Deliveroo beats earnings guidance, sees positive cash flow in 2024 / Deliveroo Guides For Higher Earnings, Positive Free Cash Flow
DoorDash’s new AI-powered ‘SafeChat+’ tool automatically detects verbal abuse
Glovo, Visa join forces to digitize 40,000 SMEs in Kenya and beyond
Gig workers on delivery apps rent accounts to get around bans
Delivery robot developer Serve Robotics files for a $46 million Nasdaq uplisting
🚀 Q-Commerce
Zepto becomes first E-commerce company to introduce platform fee
IPO-bound Swiggy’s premium grocery vertical InsanelyGood to merge with Instamart
BigBasket, Flipkart quicken delivery to counter quick-commerce / Q-comm players plan foray into e-comm: Disruption in the cart?
Rapid grocer Gopuff goes 24-hour in two UK cities for first time
Four ex-Paystack senior managers launch grocery delivery startup, GoLemon
🍳 Dark Kitchens / Micro Kitchens / Virtual Brands
Sam Nazarian buys Kitchen United IP, forms new virtual brand platform
Decoding the financial health of leading cloud kitchen startups
💰 Financing / Exits / Acquisitions
💻 Other
Ex-workers at Temu owner PDD suffer surveillance and financial ruin over non-competes
Digital-first restaurants Hungry House and MegaBite are merging
Chick-fil-A is opening its first all-mobile restaurant in New York City
📜 Deeper reads
Inside the thriving black market for illicit Deliveroo, Uber Eats and Just Eat drivers
Decoding the financial health of leading cloud kitchen startups
What is behind Glovo’s success? Co-founder Sacha Michaud reveals all
How Uber, Lyft, and Instacart are building their ad businesses
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