Instacart Faces Headwinds in H2
Postmates' new ad campaign, labor flexes muscle, market share in Italy
It’s Monday! If that’s not exciting enough, we have some not so cheery projections for Instacart’s upcoming quarters, a fun new ad campaign for Postmates, labor updates and a market share break down for a new region. Read on!
Today:
lnstacart’s Growth Projections Slow
Postmates’ Trippy New Ad Campaign
Chart Time | 3PD Market Share in Italy
Labor Flexes Muscle Across Delivery Industry
3PD | Instacart’s Banks Warn of Weak Second Half
Analysts at Goldman Sachs and other major banks, after leading Instacart to its market-reopening IPO, are now warning that the grocery deliverer’s upcoming quarters may see reduced growth and lower profits. Bank predictions put revenue growth at 7 to 8% in H2, after the company saw 31% growth in H1, and 50% in the second half of last year.
The Big Picture: IC is going to need to post some more impressive numbers, if it wants to improve its now languishing stock price; as of publishing time it sat at about $27.50, beneath its $30 list price. The trouble isn’t exactly confined to Instacart, however; the markets softened overall in Q3: the Dow sank 2.7%, while the S&P 500 and Nasdaq Composite fell 3.7% and 4.1% respectively. International markets were also mixed, which means the jury is still out on if we’ll see recently announced IPO’s by Thailand’s Line Man Wongnai and China’s Cainiao proceed.
ADS | Postmates’ New Advertising Campaign
Who knew “your brain on donuts” looked so trippy? Or that “your brain on sushi” looked like… Q-Bert? Postmates has rolled out an eye-catching new advertising campaign, courtesy of Mother LA and Nexus Design Studio. The six short videos are meant to trigger everything “from euphoria to comfort to even a kind of pleasurable pain”, says Postmates Executive Creative Director David Kim. The videos are accompanied by street art installs in locales like West Hollywood, Hollywood, and the DTLA Arts District.
Big Picture: So, why is Uber still pouring money into building Postmates’ brand? Despite sitting at 2% of market share nationally, the app commands 29% in LA (as of 2021) which combines with Uber Eats’ 15% to overtake DoorDash’s 41% of the local market. Given that Postmates is also strong in Phoenix and Miami, might we see some ads roll out there as well?
CHART TIME | 3PD Market Share in Italy
We like to chart the trials and tribulations of the delivery apps in America, where every inch of market share is closely scrutinized; but what about other countries? Well Measureable.ai is charting the 3PDs in delicious ol’ Italy, and it looks like Just Eat and Deliveroo duke it out for the top spot every month, with Glovo in a respectable third and Uber Eats a distant fourth.
Labor | Workers Continue to Flex Muscle
Truck manufacturer Mack narrowly avoided a strike this morning, as 3,900 UAW-backed workers reached a tentative agreement with their employer, four years after a two-week strike disrupted operations. Mack and parent company Volvo are the only major heavy-duty truck makers that produce all their vehicles for North America in the U.S. The agreement lets the UAW continue to concentrate on the Big 3 Automakers, where popular delivery vehicles like the Chevrolet Express are now being impacted.
The Big Picture: We’re seeing workers fight for gains on both sides of the delivery food chain. In LA, six locations of popular Bay Area-based Boba Guys saw workers unionize, a first for the popular drink category. Other food and drink categories often thought of as less prone to labor action are also seeing workers make gains, including Korean restaurant brand Genwa and Asian grocer Hannam Chain.
A Few Good Links
Why Etsy tops the charts in Ukraine. Panda Express introduces first dessert menu item to celebrate 40th bday. 7-year Amazon regional manager joins European logistics startup Oplog. Teamsters picket two LA County Amazon locations. CA’s new Senator helped pass state’s $15/hr min wage, before representing Uber in 2019 classification fight.
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