Grocery Delivery Digest

May 13, 2020

Ian Cook, Managing Editor

As states and countries begin to open up their economies, the food delivery industry continues to rapidly evolve. Take some time to read through the headlines from the past week, to stay up to speed on deals and trends. Uber Eats attempt to buy GrubHub is not the only potential deal! This week, we tried to group the articles into similar categories, for easier reading. Have a great rest of the week!

Issue #3

Wall Street Journal: America Is Stuck at Home, But Food-Delivery Companies Still Struggle to Profit

Coronavirus crisis creates a surge in orders but also costs, straining margins


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Uber has reportedly offered to buy GrubHub as it leans on food delivery to make up for coronavirus losses

Uber has made an offer to buy the delivery service Grub Hub, Bloomberg News, The Wall Street Journal, and Reuters reported Tuesday, citing people familiar with the matter. A deal could be reached by June, according to Bloomberg's sources, who also caveat that the talks could also end with no agreement.


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A GrubHub-Uber Tie-Up Would Remake the Food Delivery Landscape

The deal could shake up the large, if generally unprofitable American food delivery market, a space contested by Uber’s Uber Eats service, Grubhub, DoorDash and Postmates. The combination could create the largest food delivery entity in terms of sales, changing leadership in its market and perhaps reducing competition.


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Uber-backed grocery delivery app enters US market via Miami, Dallas

Santiago, Chile-based Cornershop has launched in Miami and Dallas, making its debut into the U.S. grocery delivery market.


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Uber Eats just made sending food to friends and family much simpler

Uber announced a new feature for Uber Eats this week that will allow users to share the status of a food delivery they have made for someone else.


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After groceries, medicines, Uber to deliver packages; explores alternative revenue streams amid Covid

Uber is exploring alternative revenue channels to get through the current crisis.


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Food delivery players will ‘look to expand their offerings and services into broader markets’, predicts report

Home delivery is here to stay, suggests analysis by a global law firm, which notes that the food delivery sector is holding up in testing markets as businesses look to diversify.


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Papa John’s CEO on No-Touch Delivery and Lessons from Arby’s

Barron’s recently spoke with Papa John's CEO Rob Lynch about business during the pandemic , lessons from Arby’s, and unflattering remarks made by the ousted founder of Papa John’s


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Watch Now: Ukrop’s Testing Home Delivery of its Food and Bakery Products

Ukrop’s Homestyle Foods is looking at getting into the home delivery of its prepared food and bakery products....


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Wing Zone is Winning by Controlling the Delivery Experience

CEO says chain has added as many as 200 jobs.


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Buffalo Wild Wings unveils its first 'GO' store in Atlanta

Buffalo Wild Wings is opening its first “GO” concept restaurant on Wednesday in Atlanta, which is designed specifically for takeout and delivery orders.


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Chili's plans YouTube dinner party with DoorDash

Food delivery app DoorDash is working with Chili's Grill & Bar on a livestreamed virtual dinner party hosted by performer Chantel Jeffries, who is celebrating the release of her upcoming single, "Come Back to Me." The party, with celebrity guests including Britney Spears, Liam Payne and Paris Hilton.


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Publix Pharmacy Begins Home Delivery of Prescriptions

Publix Pharmacy and ScriptDrop are collaborating to offer home delivery of prescriptions within a 5-mile radius of each in-store Publix Pharmacy for a $5 delivery fee.


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Target to acquire Deliv tech as the last-mile startup shuts down

Deliv is going out of business, and Target has reached a deal to acquire the same-day delivery startup's technology and some of its staff, a source familiar with the matter confirmed. The two companies have a binding agreement that is expected to close in the coming weeks.


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Food wholesaler lands $15M USDA contract as it rolls out new direct-to-consumer curbside project

Paragon Foods works to build new revenue stream selling directly to consumer market in a more precarious grocery market for fresh produce while ramping up hiring for new USDA program


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Vermont group gets $5.4M federal contract for food box delivery program

Two Vermont-based organizations have been awarded contracts by the U.S. Department of Agriculture to serve Vermonters through the Farmers to Families Food Box Program, according to an announcement from Vermont’s congressional delegation and the governor.


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Pizza ordering platform Slice lands $43M in funding

Slice, an ordering and marketing technology platform for small pizzerias raised $43 million in Series C funding Tuesday.


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DispatchTrack, a last-mile logistics platform, raises $144M in its first-ever funding

DispatchTrack, which provides a platform for last-mile deliveries specifically to help companies mimic Amazon-like experiences for themselves by planning and tracking deliveries more easily, has closed a $144 million investment — its first-ever funding after scaling up as a bootstrapped startup to support more than 60 million deliveries per year.


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Chesterfield car hauler revs up $5M capital raise to build automobile delivery service

Automotive retail trends are shifting gears in the age of social distancing, and one local company is trying to keep up with an expansion into vehicle home delivery.


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PE-Backed Quirch Buys Butts Foods

Quirch Foods, which is backed by Palladium Equity Partners, has acquired Tennessee-based fresh protein distributor Butts Foods.


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Claim: Grocery Stores Charge Instacart Customers More for Products

Shopper reached out to CBS 2 after he saw his Instacart delivery cost was almost $30 more than what his shopper paid in-store at Jewel Osco.


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Webvan Founder Is Back Just as Online Grocery Orders Take Off

Louis Borders, whose company Webvan Group Inc. epitomized dot-com era flameouts, is back with a new online grocery startup.


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Fast-casual restaurant chain Crisp & Green adds groceries to pickup and delivery offerings

Wayzata-based fast-casual restaurant chain Crisp & Green continues to roll with the pandemic’s punches, launching a new grocery pickup and delivery service at its seven Twin Cities locations.


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Operational Efficiency in the Grocery Industry is Vital as Demand for Delivery Accelerates

As many consumers hesitate to return to any kind of normal, the demand for online groceries will continue to accelerate, which drives focus for operational efficiency like never before.


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How Walmart uses AI to enable two-hour Express Delivery

Walmart speaks about AI systems underlying Express Delivery, which range from a logistics algorithm that accounts for conditions to an alerting platform that prioritizes orders for a network of over 74,000 personal shoppers.


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America's Favorite Destination Restaurants Are Being Saved by Cross-Country Delivery

Prices are high for these special treats, but by buying them, you are helping to keep these treasured restaurants in business.


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PepsiCo DTC home shipping may change food shopping forever

PepsiCo launched a pair of new online shopping websites for snacks this week, attempting to take hold of the quarantine marketplace that’s changed the world in the first few months of 2020.


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Two Companies Revolutionizing Food Delivery During Coronavirus Confinement

Moo Cow Market and L.A. Bodega on Wheels are helping consumers in SF and LA gain access to fresh, local food, while also employing workers and supporting struggling small businesses during this period of historic unemployment.


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Grocery delivery company now offering digital coupons

A California-based technology company specializing in digital promotion and analytics has partnered with Shipt to offer digital coupons.


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On-demand food delivery apps are letting minors order alcohol, regulators say

California officials say COVID-19 is spurring underage alcohol purchasing


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Chicago to require restaurant delivery services to come clean about fees

Chicago food delivery services will be required to come clean about third-party delivery costs under new rules championed by heavy-handed Mayor Lightfoot.


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Grocemania rolls out grocery delivery service scross the UK

Grocery delivery service Grocemania is expanding into new regions across the UK amid huge demand during the coronavirus lockdown.


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Ocado sales surge 40% as demand for grocery deliveries soar

Online supermarket Ocado said retail revenues surged by 40.4% over the past two months as demand soared due to the coronavirus pandemic.


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UK's Pret A Manger and grocery chain Morrisons are bolstering their online delivery services with Amazon

UK's Pret A Manger and major supermarket chain Morrisons are expanding their online delivery services on Amazon.


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Morrisons expands Amazon service, Asda launches £30 grocery box

UK grocers are increasing their channels for getting deliveries to customers, with Morrisons expanding its same-day grocery offering via Amazon Prime while Asda has launched a grocery box.


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How Yandex Is Evolving From Russia’s Google to Its Amazon

Strict limits on when Muscovites can leave their homes have increased demand for Yandex’s delivery apps, whose user numbers have grown 75 percent since March, while also driving more people to its search, blogging and streaming video platforms.


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MyGroser Expects Faster Growth in Online Grocery Business; Opens Investment Round for Expansion across Southeast Asia

Leading independent online grocery service MYGROSER today announced enhanced its delivery capabilities to further support consumers and businesses in Malaysia as the country grapples with its pandemic response.


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South Korean Grocery delivery firm Market Kurly attracts W200b investment

Market Kurly, a fast-growing grocery delivery startup, announced on Friday that it has attracted 200 billion won ($164.3 million) in Series E funding.


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Sequoia-backed Chinese online grocer Dingdong raises $300 mln, valued at $2 bln -sources

China’s Dingdong Maicai has raised $300 million in a new funding round that values it at $2 billion, two people familiar with the matter said, as the online grocer benefits from a rise in demand for fresh food delivery amid coronavirus-related restrictions.


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StoreSe launches grocery delivery service in Delhi NCR, India

StoreSe.in, a new grocery delivery platform, on Monday announced the launch of its services in the Delhi-National Capital Region (NCR) region starting this week. In partnering with offline retail brands such as Vishal MegaMart, Modern Bazaar, Metro Cash & Carry, MORE & others, StoreSe aims to provide "guaranteed delivery within 24 hours."


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After Grocery, Now Zomato Plans to Venture Into Liquor Delivery in India

After a number of states across the country allowed home delivery of liquor to cater to the needs of people during the lockdown, the Food delivery company Zomato also planned to venture into delivering alcohol.


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Gated communities In India ink tie ups with firms for delivery of essentials, medicines

Keeping the COVID-19 severity in mind, a slew of gated communities have tied up with companies such as Apollo Hospitals, ITC, Metro Cash & Carry, among others.


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Liquor makers, restaurants pitch for home delivery of booze in India; suggest several models

The liquor industry along with restaurants, bars as well as some online food aggregators have urged the government to permit home delivery of alcohol, saying this will not only ensure social distancing but also be a lifesaver for sectors ravaged by the COVID-19 crisis.


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ABB and ASKO To Electrify Norwegian Delivery Fleet

ABB has entered into an agreement with Norway’s largest grocery wholesaler ASKO, and its owner NorgesGruppen, to supply charging infrastructure for its growing fleet of electric trucks.


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Deliveroo Launches Board Game Delivery Service In Melbourne

Board games and pizza belong together — and Deliveroo feels the same. The delivery service is now offering board games for purchase alongside its usual meals with a range of classic titles available for customers in Melbourne.


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Instacart's army of shoppers has exploded from 180,000 to 500,000 since the start of the pandemic — and some workers say it's making the job more difficult for everyone

Instacart's CEO told Bloomberg business has been so good that the company has already hit its sales goals through 2022. But veteran shoppers told Bloomberg a different story — that the influx of new workers and Instacart's push for efficiency has exacerbated existing issues around poor working conditions.


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‘A ticking time bomb.’ California essential workers fear COVID-19 in warehouses, stores.

The Modesto Bee spoke with people who staff the region’s large distributions centers and major retailers like grocery and discount stores.


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The executive in charge of Amazon's 1 million warehouse and delivery workers said the number of employees infected with coronavirus is not a 'useful number'

Amazon's head of operations stated in a 60 Minutes interview that he does not know the total number of Amazon employees who have become sick with the coronavirus. He said tracking the total number of cases is "not a particularly useful number," because the infection rates at Amazon's fulfillment centre match or are lower than the cities they are in.


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