This Week in Food Delivery & Quick Commerce (20/01/24)
Hi all,
The new edition of the newsletter is out!
Highlights:
JET Q4’23 mixed (profits exceeded, orders down)
JET to end Paris delivery service
Deliveroo had an OK Q4’23
Picnic raises $388M
Uber closes down Drizly
Ocado had decent Q4’23 but pauses new sites
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💬 Quote of the Week
“DoorDash is raising delivery fees for Big Apple customers and restaurants alike in response to recent minimum wage hikes — driving already-stratospheric prices even higher, The Post has learned.
A month after city legislation forced food-delivery apps to pay higher hourly wages – at least $17.96 an hour – DoorDash told restaurants that they will be paying a higher commission rate effective Wednesday, according to a memo obtained by The Post.
The memo also warns because of the “extreme minimum pay rate” customer fees will go up “to help offset the increased costs.”
The result: A typical dinner that’s delivered in New York City — whether it’s a burger, a chicken burrito or a plain cheese pizza — is likely to get $4 pricier, on average, according to food-industry insiders who asked not to be named.
That’s because insiders estimate Doordash will tack on an extra fee of $2, while restaurants raise the prices on dishes by the same amount to offset their own soaring costs.”
Source: New York Post
📊 Infographic/Stats of the Week
As you can see in the list of the top 15 FoodTech deals of 2023, the number of “mega deals” ($100M or more) is quite limited. And it says something about the ecosystem's health that the biggest deal of the year was made in a pet food startup.
Delivery startups are well represented. If quick-commerce (grocery delivery in less than 15 minutes from small warehouses inside city centres) startups have mostly failed in their effort to scale in developed economies, they are doing quite well in developing countries (notably India and Latin America).
Source: DigitalFoodLab
🚚 Deliveries
Just Eat Takeaway to end Paris delivery service, around 100 jobs affected
Grubhub Orders Fall 13% Amid Company’s Cost-Cutting Measures
Deliveroo Sees 2023 Earnings Slightly Ahead Of Guidance // Deliveroo sees 2023 earnings slightly ahead of guidance
Uber is closing alcohol delivery service Drizly three years after acquistion
Instacart and DoorDash Hike Fees in Seattle Following Wage Law
7-Eleven Takes on Restaurant Aggregators With Food Delivery App
Alphabet’s Wing supersizes delivery drones to tow big orders
Zomato Unveils Its Sustainability Plan, Eyes 100% Deliveries Through EVs By 2033
Meituan Stock Dives Below IPO Price: Tumultuous Times Ahead for China’s Tech Sector
🚀 Q-Commerce
Dutch online grocer Picnic raises $388 mln from investors, Gates Foundation
Instacart and DoorDash Hike Fees in Seattle Following Wage Law
Tata-backed Bigbasket rebrands slotted grocery delivery service to 'Supersaver'
Britain's Ocado Retail pauses new sites for two to three years
🍳 Dark Kitchens / Micro Kitchens / Virtual Brands
💰 Financing / Exits / Acquisitions
Dutch online grocer Picnic raises $388 mln from investors, Gates Foundation
Khazanah Nasional backs Indian cloud kitchen startup’s $42m round
Meals in Minutes Raises $1.5M to Spice Up Meal Kit Offerings and Expand Globally
💻 Other
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📜 Deeper reads
Europe’s food delivery apps are beginning to serve up a profit
Alibaba and Bytedance talks on future of Ele.me food delivery service continue: reports
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