This Week in Food Delivery & Quick Commerce (30/03/24)

Hi all,

The new edition of the newsletter is out!

Highlights:

• Wonder raises $700M

• Meituan had a good Q1

• Ocado had a decent Q1

• Instacart opens platform to 3rd party devs

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

“3 new unicorns in 2023 and 5 downturns

There are now 59 FoodTech unicorns, down from 62 last year. Even so, considering the context (the global amount of funding for foodtech startups decreased by almost 60% between 2021 and 2023), knowing that only five startups had their valuation decrease below the $1B threshold is almost surprising. Even better, three new unicorns (Zepto, Restaurant365, eFishery) appeared in 2023, and one (Inari) in the first quarter of 2024.”

Source: DigitalFoodLab

📊 Infographic/Stats of the Week

Having launched in only Yau Tsing Mong in Kowloon on May 19th 2023, KeeTa is now available Hong Kong wide since October. They can now claim to take slightly more than 25% of all transactions having gradually grown share month by month.

Food Panda had the most to lose from KeeTa’s launch; The laws of growth tell us that the market leader is likely to lose users in proportion to their share. However the good news for parent company Delivery Hero is that share remains consistently above 50% of transactions. The secret has been sustained penetration growth, with the brand capturing more consumers as the market expanded with KeeTa’s arrival

Deliveroo clearly has taken the biggest hit from KeeTa’s launch.

Averaging 35% share mid 2023, they now average around 24% in the last 3 months, with transactions only remaining consistent overtime, rather than seeing growth.

Source: Eureka AI

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🚚 Deliveries

• Wonder, Marc Lore’s Food-Delivery Startup, Raises $700 Million

• Delivery app operator Woowa's net surges 84 pct in 2023

• Delivery Hero repurchases convertible bonds due in 2025 and 2026

• e-Mobility Rentals and Glovo expand partnership; electric vehicle fleet for couriers reaches 62 units

• Deliveroo is spending an estimated $230,000 to give a handful of riders 15 hours of childcare

• Florida food delivery bill goes to Gov. DeSantis

• DoorDash, Grubhub Want Docs From NY Restaurant Lobbyists

• DoorDash is testing drone delivery at a single Wendy's location in a small Virginia town

• DoorDash Poaches AI Startup Talent to Bolster Voice Ordering

• Bolt Business Launches Bolt Food for Business to help Companies and Employees Order Meals and Snacks

• IPO-Bound Swiggy Posts $207 Mn Loss In Apr-Dec 2023

• Chinese Food Delivery Group Meituan Sees Revenue Beat Expectations // Meituan Revenue Beats Estimates After Staving Off ByteDance

• Coupang Eats to remove delivery fees for Wow members in attempt to topple Baemin

• Pay to work: Rappi now charges delivery drivers in Brazil a weekly fee

• talabat to be default app on Xiaomi phones in Iraq

• Rappi to invest $110 mln to boost Mexico operations

• High-end restaurant delivery service Supper shuts down

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🚀 Q-Commerce

• Delivery service Getir now about to take over Flink

• Kroger Closing 3 E-Commerce Fulfillment Facilities // Kroger closing Ocado 'spoke' locations in Florida, Texas

• Instacart and AWG expand partnership, introduce smart carts

• Instacart wants to be everywhere, from smart fridges to New York Times Cooking

• Instacart settles over alleged labor violations for nearly $750K

• Ocado Retail sales rise as sharper prices win customers

• Ocado, M&S still talking over final Ocado Retail payment, says jv CEO / Speculation over M&S Ocado split persists after payment dispute

• Getir has partnered with social impact company Too Good To Go to help tackle food waste across the UK.

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🍳 Dark Kitchens / Micro Kitchens / Virtual Brands

• Binny Bansal’s Three State Ventures Injects $25 Mn into Curefoods

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💰 Financing / Exits / Acquisitions

• Wonder, Marc Lore’s Food-Delivery Startup, Raises $700 Million

• Binny Bansal’s Three State Ventures Injects $25 Mn into Curefoods

• Virtual Dining Concepts acquires Man Vs. Fries

• ChowNow acquires digital order integrator Cuboh

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💻 Other

• Uber agrees $178m payout to Australia taxi drivers

• Chinese e-commerce giants take on S. Korea with low prices and free shipping

• Douyin launches dedicated shopping platform

• Pennsylvania Domino’s pizza franchise fined $344,000 for child labor offenses

• South Korea's Coupang plans $2bn expansion of next-day delivery

• Shake Shack recruits Papa Johns’ Rob Lynch as its new CEO

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📜 Deeper reads

• How India could become the world’s first quick-commerce success story

• An outlook of Q-commerce in Nigeria, what to expect in 2024

• Virtual Deliveroo driver is tracking workers’ earnings

• The New Hotel Essential: Easy Take-Out Food

• China’s ecommerce groups make inroads in South Korea with lure of low prices

• The Gig Economy Redefines Work in Latin America

• Drone delivery's biggest problem isn't in the air

• Scaling AI/ML Infrastructure at Uber

• Walmart incremental growth

• How Zomato broke the rules of Product-led Growth

• The ghost kitchen industry is shrinking — here’s why that’s a good thing

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