Grocery Delivery Digest

July 14, 2020

Ian Cook, Managing Editor

With so many big food delivery deals over the past few weeks, the newsletter this week has less “breaking news” and a little more analysis. The ghost kitchen trend also continues to pick up steam. Enjoy this week’s newsletter!

Issue #12

Wall Street Journal: Food Delivery’s Next Meals Won’t Come Cheap

Investors hungry for near-term price rationalization in the industry could get smoked.


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Why Food Delivery Mergers aren't Such a Big Deal

Grubhub, DoorDash and Uber Eats will continue to slug it out in a profit-challenged business facing a government crackdown.


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Tim Hortons Partners with Grubhub for Delivery in Select U.S. Markets

Tim Hortons U.S. is partnering with Grubhub to offer delivery in select regional markets, including Grand Rapids, Michigan, Detroit, Michigan, Rochester, New York, and Columbus, Ohio.


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Introducing Uber’s Grocery Delivery

Customers in select cities in Latin America and Canada can order groceries through both the Uber and Uber Eats apps. And starting later this month, grocery delivery will be available in Miami, FL and Dallas, TX.


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Uber Goes All In with Grocery Delivery

This could put the ride-hailing company in direct competition with Instacart.


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Walmart’s Amazon Prime Competitor will Launch in July

Walmart+ will cost $98 a year and include same-day delivery of groceries, fuel discounts, and other perks.


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Regional Supermarket Chain to Test Drone Grocery Delivery this Fall to Compete with Amazon's Delivery Speed

Rouses is partnering with last-mile delivery drone startup Deuce Drone to conduct a test flight at a store in Mobile, Alabama.


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Grocery Brands Double Down On Amazon Fresh, But Challenges Remain

With Amazon capturing so much of the online grocery market and having the most robust technology for brands to launch and grow the channel, it’s usually an easy choice for grocery brands to invest in this channel in the early stages of their digital transformation.


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Amazon Leads in Online Grocery Shopper Satusfaction

Supermarkets garner highest percentage of new online customers, Retail Feedback Group study finds.


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Prepping For The Coming Grocery Delivery Wars

Imagine drones racing through the skies, festooned with NASCAR-like logos, laden with boxes of comestibles as cohort drivers on the ground try to outwit each other to drop Pop-Tarts and paper towels at people’s doors.


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Fresh Thyme Farmers Market Taps Shipt for Grocery Delivery

Specialty grocer Fresh Thyme Farmers Market has launched same-day online grocery delivery via Shipt in 30 metropolitan markets across the Midwest.


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Cloud Kitchen Start-Up Karma Kitchen Raises $318 Million for Expansion As Food Delivery Explodes During Pandemic

Cloud Kitchen Start-Up Karma Kitchen Raises $318 Million for Expansion As Food Delivery Explodes During Pandemic


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Butler Hospitality Raises $15M to Bring Cloud Kitchens to Hotels to Elevate In-House Dining

AlleyWatch caught up with CEO and Founder Tim Gjonbalic to learn more about Butler’s service and the pain points that it addresses. Butler is available in a number of fine NYC hotels and plans to expand to Miami, Chicago, and Washington D.C.


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Online Grocery Profitability

One analyst's estimated grocer margins by channel and model.


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Ghost Kitchens Could be a $1T Global Market by 2030, Says Euromonitor

Ghost kitchens, or cooking facilities that produce food only for delivery with no dine-in or customer facing areas, could create a $1 trillion global opportunity by 2030, according to a Euromonitor virtual webinar presented by Euromonitor's Global Food and Beverage Lead Michael Schaefer.


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Chuck E. Cheese's Pizza Delivery Side Hustle Is Booming

The future of Chuck E. Cheese may be its delivery spinoff, Pasqually’s Pizza.


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Testing MilkRun: Portland’s Farm-to-Doorstep Grocery Delivery Service Launches in Seattle

Demand for the Portland-based company’s farm-to-doorstep groceries has been surging since the outset of the pandemic, allowing MilkRun to expand to its first new market.


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A Deep Dive into the GCC’s Cloud Kitchen Sector [part two]

As previously outlined in the first part of this deep dive, several cloud kitchen business and operating models have emerged. Within this, it is the virtual brands that are the fastest growing segment.


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Ghost Kitchens Take on Coronavirus-Driven Food Delivery Surge

At Wingstop Inc., talks of a ghost kitchen preceded COVID-19, but the chicken wing icon moved quickly to launch its first domestic concept in June as its sales imploded, with April 2020 same-store sales growth at more than 33.4 percent and a 65 percent increase in digital sales.


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CEC Expands Virtual Pasqually’s Brand with DoorDash Delivery

More than 420 Chuck E. Cheese’s units offer pizza, wings and dessert through third-party platforms


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Cordia Launches Virtual Dining Brands

The company is now operating two delivery only brands called Vegas.Pizza and KO Sports Bar in the Las Vegas market. Both menus are available now on Postmates and Grubhub.


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CloudChefs Launches COVID-19 Restaurant Relief Program to Save Restaurants in Toronto

With thousands of restaurants threatened by COVID-19, this restaurant relief program by CloudChefs aims to help restaurants build a profitable Delivery-Only Restaurant in under 60 days.


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Exclusive: Inside Uber’s Billion-Dollar Bet to Deliver Food, People, and Everything Else

CEO Dara Khosrowshahi shares the reasoning behind Uber’s new app redesign and his ambitious plan to make Uber “part of the heartbeat of every single city” as the company weathers the coronavirus.


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A Pandemic-Resilient Startup? MAGNiTT Interviews Co-Founder and CEO of GrubTech, Mohamed Al Fayed

GrubTech, an end to end SaaS platform enabling the digital transformation of restaurants and cloud kitchens, recently raised $2M in Seed funding from the region’s industry captains and family offices.


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CloudKitchens Turns Shipping Containers Into Drive-Thru Of The Future

CloudKitchens is now leasing the first of its ghost kitchens designed from prefabricated shipping containers, tailored to drive-thru pickup and delivery at 358 W. 38th Street near the University of Southern California.


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Third-Party Delivery Boosts Pizza Chain's Bottom Line

When dining rooms closed due to COVID-19, California-based Amici’s East Coast Pizzeria quickly shifted its 10 locations to takeout and delivery-only using its existing Your Fare online ordering system.


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Where’s Third-Party Delivery Headed?

In the wake of the recent consolidation of third-party delivery providers, HT reached out to industry experts for their commentary on what this means for the future of third-party delivery and the possible implications for restaurants.


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Is the Uber-Postmates Deal Good for Restaurants?

It’s clear what Uber gets out of this latest deal: market share. Between Postmates and its own delivery platform, Uber Eats, Uber will control 37 percent of food-delivery sales in the U.S., making it the No. 2 player in the delivery space, behind DoorDash (44 percent) but ahead of Grubhub (17 percent), according to the New York Times.


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Nibbly Selects YOU X to Help Launch Their New Grocery Delivery Brand

The two parties aligned on an aggressive brand & design sprint to be able to launch the company in June.


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Asda Partners with Uber Eats for Grocery Home Delivery Trial

Asda has partnered with Uber Eats to offer customers a rapid delivery service to the doorstep in as little as 30 minutes*.


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UAE Restaurants Launch Own Delivery App to Cope with Delivery Aggregators

Restaurant operators across the UAE are actively working on raising awareness among customers about the struggles that they continue to face with the high commission rates charged by delivery aggregators during the Covid-19 pandemic.


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