HelloFresh Launches In-House Delivery Fleet
Today rolls out green fleet for Uber Eats London, Target stock surges, Deliveroo charts top dishes
Meal kit giant HelloFresh is pivoting to handling delivery in-house; with Wonder-owned Blue Apron announcing a similar move, is this the start of a new trend? Speaking of trends, we’ve got Deliveroo’s “top trending” dishes of 2023. And Today + Uber Eats are pushing e-mopeds in London, plus Target just dropped an impressive Q3. Let’s get to it!
Today:
Say Hi to HelloFresh’s New In-House LMD Fleet
Uber Eats London Goes Green with Today
Chart Time | Deliveroo’s Top Trending Dishes
Target Hones in on Profit Growth in Q3
OPS | HelloFresh Launches U.S. Last Mile Delivery Fleet
Meal kit leader (last man standing?) HelloFresh is shaking up its operations, as it launches a 500-vehicle strong delivery fleet in 19 American metro areas. Sporting both HelloFresh and Factor branding (the company also operates Green Chef, EveryPlate, Chefs Plate, Youfoodz and The Pets Table) the Berlin-headquartered company claims the vans will also help grow awareness and recognition for its subsidiaries. While the fleet will be partially electrified, HelloFresh believes the real sustainability boost comes from more efficient routing: by slimming down delivery times, it can cut back on insulation and ice packs, which account for 6-10% of package weight.
The Big Picture: With the meal kit industry in a state of slow retrenchment, HelloFresh is perhaps the only player left with the resources to pull this move off at scale. While its customer count dropped 5.9% to 7.1 million in Q3, it still managed to eke out a respectable 69.2 million euro core profit, giving it the necessary heft to take advantage of an in-house fleet. Competitor Blue Apron initially went in the opposite direction — shedding its assets and operational infrastructure to FreshRealm — before reversing course as part of its buyout by Wonder, its new parent company just announced plans to use its existing couriers to handle meal kit deliveries as well, albeit just in the NY & NJ region.
FLEETS | Uber Eats & Today Share London Electrification Plan
Electric moped and scooter operator Today is debuting its plan to electrify Uber Eats’ delivery fleet, as the two companies look to move 20,000 London-based deliverers from gas-powered mopeds to electric vehicles. While Today rents its fleet of e-mopeds for £179.10/mo or £44.78/week, it’s rolling out a number of innovations to help cash-strapped couriers make the switch. The biggest change is allowing two riders to share one vehicle, splitting up payments for renters while reducing Today’s nonpayment risks. The company is also building out a referral network, capitalizing on word of mouth to build awareness. Last but not least, a series of Rider Hubs will give couriers a place to test drive the vehicles, take a break while on long shifts and swap batteries if necessary.
The Big Picture: Uber’s working with a number of fleet and infrastructure companies, as it looks to go emissions free by 2030. Other partners in the U.K. include charging provider bp pulse, and ebike renter Zoomo. If the Today brand name isn’t familiar, don’t be too surprised — it was created this summer by glomming together a number of smaller micromobility players, like Frog, Ottr, Leap, Element, White Fox and Mixte.
CHART TIME | Deliveroo’s Top Trending Dishes of 2023
Multinational 3PD Deliveroo just released a report highlighting the year’s top trending dishes from across the globe. Given that the London-based company has operations in spots as diverse as Hong Kong, Kuwait and Italy, it’s no surprise to see dishes as varied as Mixian Noodle Soup with Pork Belly and Cuttlefish Ball make the list, alongside a McDonald’s Gran Crispy McBacon and Champions Du Monde (a twist on deviled eggs.) The company also breaks out the top dishes in the U.K specifically, a great reminder of the joys of British eating: their list includes hot items like “small bananas,” “build your own bowl,” “cheeseburger” and the request “no tomatoes, please.” (Too spicy, we bet…)
FINANCE | Bullseye! Target Profits Soar in Q3
After a weak Q2, Minnesota-based Target looks to be back on its feet, with a powerful Q3, sending its stock surging this morning. Earnings per share came in at $2.10, way ahead of analysts’ expectations of $1.48. While comparable sales feel 4.9%, industry watchers were more impressed to see its operating income margin jump to 5.2%, up from 3.9% a year prior. The company has improved its EPS by more than 50% since Q3 2019, as it cuts inventory levels and prioritizes quick-moving, low-cost items.
The Big Picture: Target unfortunately doesn’t always break out performance at Shipt, the company’s grocery-focused delivery service. We do know that comparable digital sales fell 6% YoY, while in-store sales only dropped 4.6%. Digitally-oriented sales accounted for 16.8% of Target’s channel mix, down 0.3 percentage points from a year prior. The company did manage to juice its Target Circle loyalty user count, signing up a million plus new members during its Prime Week-like events in July and October. Circle members shopped Target five times more per quarter, and spent an extra $300, compared to non-Circle shoppers. While the company is beefing up its workforce by about 100,000 for the holidays, the retailer is notably keeping its stores closed on Thanksgiving Day.
A Few Good Links
DoorDash to dole out $440k in disaster relief. TJX (Marshalls, TJ Maxx) sales jump 9%. Canoo reports Q3 GAPP net loss of $112M. Cities reveal demand-pricing strategies for parking. DTLA I-10 to reopen in less than a month. Amazon reveals new fulfillment robot. Meet Subway’s new bean counter. Denny’s unveils first California drive-thru (can you eat a pancake in the car?) ALDI named retailer of the year. Restaurants offering subscription programs surges 54% YoY. Drone Express unveils new delivery vehicle. Everytable partners with NYC Health + Hospitals. Pieology unveils Nutella dessert pizza (anyone else remember the Domino’s Oreo Dessert Pizza?) Wish launches new logistics service for non-Wish sellers. Walgreens shifts same-day delivery fulfillment to retail stores. Chewy cuts 200. USPS swings to a loss, Postmaster General reveals cost-cutting plans while bulk mailers agitate for no rate increases.
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