OnTrend Concepts
Grocery Delivery Digest

February 16, 2021

Peter Cook, Publisher

Happy Fat Tuesday!  Plenty of grocery delivery news this week.  Investment continues to pour into grocery delivery…but can it deliver returns?

Don’t go too crazy with your Mardi Gras/Fat Tuesday celebrations…it just makes Ash Wednesday that much harder!  By the way, I haven’t seen any news on home delivery of ashes…could be an opportunity?

We hope those of your stuck in the winter storms in the central U.S. are able to keep warm.  Order a cup of coffee online and it will be delivered to you before you get halfway through this week’s Grocery Delivery Digest!  We hope you thoroughly enjoy both!

And now, the news…

Issue #43

ALDI to Open 100 New Stores, Expand E-Commerce

ALDI plans to open around 100 new stores nationwide in 2021, and will expand its e-commerce and grocery pick-up services.

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Uber Earnings: Delivering Food Runs Miles Ahead Of Delivering People

Uber delivers people. Uber delivers food. One of these businesses was uniquely suited to the digital-first economy. That became clear on the company’s earnings call on Wednesday as its fourth-quarter and full-year results took the measure of Uber’s business model and the potential impact of recent acquisitions.

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Peapod Founders Re-enter Grocery E-commerce with Custom Shopping Tool

The entrepreneurs who founded pioneering e-grocer Peapod have launched Sifter.shop, an online shopping site that helps people identify foods according to their dietary and lifestyle requirements and then add those items to an online cart with a partner retailer.

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DoorDash Grabs Majority of Surging Convenience Market

DoorDash is leading the online convenience category by a country mile, according to new transaction data analyzed by Edison Trends. After 2020, in which consumer spending at online C-stores grew by 346 percent, DoorDash ended last month with 58 percent share over second-place goPuff with 24 percent of the market.

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Amazon Took a Chunk of Deliveroo. Then Things Got Interesting

In less than a year Deliveroo went from the bust to boom. Amazon saved it – but at what cost?

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Instacart Acquires from than 250 Patents from IBM

For the past 28 years, IBM has been granted more patents than any other company in the US.

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Five Months In, Walmart+ Shows Signs Of A Promising Start, Study Finds

Five months after Walmart introduced Walmart+, the brick-and-mortar retail giant’s Amazon Prime-like membership program looks to make some headway, according to a study.

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GNC Partners with Shipt to Provide Customers Same-Day Delivery

GNC has partnered with Shipt to bring same-day delivery of GNC health and wellness products to customers throughout the country.

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Imperfect Foods Secures $15m Increase to Series D Commitment

Founded in 2015, Imperfect Foods aims to reduce food waste by ‘rescuing’ imperfect or excess products, including vegetables, dairy, shelf-stable goods, meat and seafood. These are then distributed to consumers via its grocery delivery service.

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Price Chopper/Market 32 and Tops Markets to Merge, Nearly Doubling Their Footprint in the Northeast

Price Chopper/Market 32 and Tops Markets today announced that they have entered into a definitive merger agreement that creates a powerful alliance between the two storied independent grocery chains, as it nearly doubles their collective footprint in the Northeast.

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Mexican Online Grocer Jüsto Raises $65M in General Atlantic-led Series A

Jüsto, an online supermarket based in Mexico City, announced last week it has raised $65 million in a Series A round led by General Atlantic.

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GrubMarket Raised $90 Million in 2020 to Accelerate Nationwide Expansion

GrubMarket today announced it completed $90 million of financing in an oversubscribed Series D round in 2020, from funds and accounts managed by BlackRock, ACE & Company, Celtic House Venture Partners, Sixty Degree Capital, The Strand Partners, Reimagined Ventures, Trinity Capital Investment, Madison Bay Capital Partners, Marubeni Ventures, GGV and others.

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X5 Becomes Russia’s Largest Digital Company in Food Retail After 347% GMV Jump

X5 Retail Group became Russia’s largest digital company in the online food retail segment in 2020 after its Gross Merchandise Value (GMV) jumped 347% y-o-y, according to Infoline research.

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Amazon Integrates Pantry within Fresh to Create a Single Online Grocery Store in Indian Markets

Amazon's grocery offerings Pantry and Fresh will now operate as a single service, the company said on Friday. To begin with, customers in Delhi, Ahmedabad, Bengaluru and Mysore will be able to avail the benefits of the integrated store. So far, Pantry and Fresh operated as separate stores within the broader marketplace.

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My Food Bag seeks up to $342m in IPO, sets March 5 date for dual listing

My Food Bag plans to sell up to 185 million shares in an initial public offer that values the meal kit company at just under $450 million.

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First Deliveries Made into Kroger’s Ocado CFC

The first cases have been delivered into the first CFC that is due to open as part of the strategic partnership between Kroger and Ocado. First of two planned sites expected to open this year.

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Ocado Pours Cash into its Warehouses Amid Surge Online

A pandemic-driven surge in demand for online grocery orders last year has reduced losses at Ocado, but the company’s plans to further step up investment cast a shadow yesterday over its prospects for future earnings.

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Online Shopping boom Sends Ocado's Earnings Soaring: Sales at Grocery Retailer Rise by a Third to £2.2billion

Ocado's sales has risen by a third to £2.2billion as the grocery retailer says shopping habits have changed for good because online food shops rocketed during the pandemic.

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Operational Rigidity Prevents Ocado from Gaining a Stronger Foothold, Says GlobalData

“When viewed in relation to the wider online grocery market – which grew 87.8% in 2020 – and rival’s results, it is clear Ocado has failed to keep pace with the likes of Tesco, Sainsbury’s and Waitrose over the course of the year. This largely stems from its inability to meet the boom in demand the way its supermarket rivals have been able to, i.e. through rapid escalation of in-store picking services for online fulfilment.”

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Poland’s Last Mile has Become a Synonym for Innovation in Europe

New research shows that Poland’s parcels market is growing at a staggering rate, with players such as InPost driving innovation in one of Europe’s most dynamic last-mile markets.

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Uber Lobbies for ‘Prop 22’-Style Gig Work Standards in the EU

Uber is shooting its shot at EU lawmakers as they dial up scrutiny of working conditions on gig platforms to decide whether new rules are needed to improve the lot of gig workers.

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Ocado's Game Plan for 2021 Assumes No Going Back for Online Grocery Shopping

Ocado is an online grocery veteran and one now facing potential increased competition as rivals find that omni-capabilities are now an essential, not an option.

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Delivery 2.0: How On-Demand Meal Services Will Become Something Far Bigger

The U.S. app-based delivery economy took shape in the first half of the 2010s as services such as Instacart, DoorDash, Uber Eats, and Postmates came online and early pioneer Grubhub went public. But it took until this decade for the industry to experience its catalyst event.

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E-Grocery: Challenge or Chance

With an approximate market size of USD 326 billion, food & groceries form the backbone of the Indian retail sector. Food is one of the main categories of global spending and a significant proportion of the wallet for consumers.

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The E Grocery Dilemma

Swisslog vice president of retail and e-commerce sales, Colman Roche, discusses the challenges grocers face as they evaluate their options for dealing with the rapid growth in e-grocery sales.

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Where Does Grocery Go Next with Online Fulfillment?

In trying to envision the future of grocery, we at S2G Ventures go back to how it all began. In 1916, Clarence Saunders opened the first Piggly Wiggly store and changed how people shop for food. The chain’s revolutionary self-service operations, which allowed customers to browse four times the product variety of the average store, unlocked a simple truth: Americans like to pick their own groceries.

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How Food Brands Must Adapt to Changing Online Shopping Needs As Consumers Embrace eCommerce

At the start of the pandemic, online shopping, and online grocery in particular, was an obvious need for consumers looking for an easy and safe way to buy essentials. Now as restaurants, bars, and retail shops remain closed or at limited capacity, and consumers settle into quarantine with continued uncertainty this year, how will online shopping needs change? And how must brands adjust their online and eCommerce strategies to win?

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Grocery Delivery Services can Help Keep Seniors Healthy, Safe this Winter

With winter roads treacherous and the COVID-19 vaccination process in its early stages, many experts continue to advise that older adults consider staying home as much as possible. However, with errands to run and doctor’s appointments to keep, staying home isn’t always easy. After all, you need to eat, right? Thanks to numerous grocery and meal delivery options, going food shopping is one item you may be able to cross off your to-do list.

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Vallarta Supermarket Readies for Lent

If you’re looking for an easy place to make meatless choices, Vallarta Supermarkets is offering additional menu offerings in various departments in time for Lent—February 17 to April 3. And they’re partnering with Postmates and Instacart, if that doesn’t make it all just too easy.

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