This Week in Food Delivery & Quick Commerce (27/04/24)
Hi all,
The new edition of the newsletter is out!
Highlights:
Delivery Hero had a good Q1’24
Meituan plans to launch in the Middle East
Getir planning to close down NL/DE as well
Amazon Launches Grocery Delivery Service
Zipline hits 1M orders
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💬 Quote of the Week
“Getir was founded in 2015 in Turkey and launched in the UK in early 2021, one of a slew of rapid grocery providers promising delivery within 15 minutes. Unlike aggregator apps, which partner with existing stores, the players established dedicated dark stores and courier fleets.
“During the pandemic it was clear customers valued the way they could satisfy their needs,” says Gregor Murray of Digital Commerce Global. “But as soon as customers weren’t locked down that evaporated.”
[…]
For a sustainable business, companies like Getir needed orders to be high-margin but small basket size, they needed high customer numbers but a small delivery area, and high daily order volume with low alternative routes to customer. Since the pandemic ended that market simply doesn’t exist,” summarises Murray.”
Source: The Grocer
📊 Infographic/Stats of the Week
“Goldman Sachs said in a report late Thursday that Indian food delivery giant Zomato’s quick commerce arm Blinkit is now more valuable than its core food delivery business, as per the bank’s sum-of-the-parts analysis.
The investment bank estimates Blinkit’s implied value at 119 Indian rupees per share ($1.43) or about $13 billion, while Zomato’s food delivery business is valued at Rs 98 per share. Goldman previously pegged Blinkit’s valuation at $2 billion in March 2023.
Blinkit’s valuation surge is driven by its strong growth potential in India’s fast-growing quick commerce market. Goldman Sachs forecasts Blinkit’s gross order value (GOV) to grow at a compound annual growth rate (CAGR) of 53% between the financial years 2024 and 2027, outpacing the overall online grocery market’s projected CAGR of 38% during the same period.”
Source: TechCrunch
🚚 Deliveries
EU Lawmakers Approve Scaled-back Rules For App Worker Rights
Republican senators probe Uber Eats, DoorDash and Grubhub after Post report on migrant workers
Singapore Plans Law to Support Gig Workers’ Retirement Needs
Delivery Hero ups revenue guidance on rising orders, ad revenue
Uber and Klarna Team on New Payment Options for Rides, Deliveries
Zomato hikes platform fee to Rs 5 per order; pauses intercity deliveries
Swiggy, the Indian food delivery giant, seeks $1.25B in IPO after receiving shareholder approval // Swiggy IPO Out For Delivery
Swiggy launches Smart Links to boost orders for restaurants with digital presence
Swiggy’s health insurance takes more from workers, gives less
Baemin Introduces Subscription Service Offering Unlimited Delivery Fee Discounts
Meituan looks to hire in Saudi Arabia, indicating food delivery expansion // Meituan to Debut in Riyadh in First Expansion Beyond China // Meituan Plans to Launch Food Delivery Platform KeeTa in the Middle East
With Douyin looming, Meituan shifts focus back to its core business
Glovo dominates food and grocery delivery platforms (in Kenya)
Serve Robotics Enters Production Agreement with Magna to Scale Robot Manufacturing
Zipline drone startup hits 1 million deliveries, eyes restaurant expansion
Amazon is shutting down its drone delivery service in California as it looks to other markets
🚀 Q-Commerce
Rapid delivery firm Getir set to exit the Netherlands, UK and Germany: Report // Getir shareholders to pay for Europe withdrawal under cash injection // Getir, Gorillas close to pulling out of Germany, media report
Getir mulls sale of shopping platform n11 among options, sources say
If Getir Exits Europe, Will Turkish Focused Future Include FreshDirect? // FreshDirect may go under as parent Getir looks to cut costs: ‘Don’t see how it lasts longer than a year’
Government Asks Quick Commerce Platforms To Prove Claims Of Delivering Orders Within 10 Minutes: Report
Zomato’s quick commerce unit Blinkit eclipses core food business in value, says Goldman Sachs
Rohlik Group invests in automation technologies as AutoStore powered warehouse goes live in Berlin
Amazon is taking aim at Target and Walmart with a new low-cost delivery subscription // Instacart Stock Drops as Amazon Launches Grocery Delivery Service
Ocado faces investor calls to abandon London listing for New York
Flipkart’s supply chain head Hemant Badri to lead quick commerce business
🍳 Dark Kitchens / Micro Kitchens / Virtual Brands
💰 Financing / Exits / Acquisitions
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💻 Other
Domino’s is now tipping customers who tip their delivery drivers
Domino’s Fails Again to Get High Court Look at Arbitration Case
📜 Deeper reads
Surge in food delivery-related legislation and lawsuits could lead to industry regulation
Getir and Flink: What’s next for the delivery startup market?
As Getir leaves the UK, can challengers crack the grocery delivery market?.
Swiggy, the Indian food delivery giant, seeks $1.25B in IPO after receiving shareholder approval.
Uber Eats Gauges Partner Satisfaction in ‘Merchant Impact Report’
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