Instacart Powers Fairway Now 30 Minute Delivery
AB5 appeal hearing, Bird & Helbiz flail, CART slides
It may be the end of the year, but we’re still getting big news across the delivery landscape, starting with an NYC grocer launching instant delivery. We’ve also got a big court decision, a micromobility disaster in the making and a nice stock market checkup. Read on!
Today’s edition is brought to you by the DRA Restaurant Marketing Summit.
Today:
Fairway Now Launches with Instacart
AB5 Appeal to Be Heard
Chart Time | 3 Months of $CART
Micromobility’s Wheels Fall Off
3PD | Fairway & Instacart Launch 30 Minute Delivery
NYC regional grocer Fairway is teaming up with Instacart to launch Fairway Now, a quick commerce delivery service, providing groceries and household essentials in 30 minutes or less. This partnership goes deep, including physical changes to Fairway’s stores, with the grocer creating a dedicated aisle for Instacart couriers that’s stocked with frequently shopped-for items. The service goes live this morning in Chelsea and the Upper East Side, with two more Manhattan locales activating in the coming weeks.
The Big Picture: While Fairway used to have about a dozen stores across the Tristate, in recent years it’s retrenched to Manhattan. That said, given Manhattan’s impressive density, those four markets are within 30 minutes of a good million or so customers. Fairway is owned by Wakefern Food Corporation, a cooperative of other Northeastern grocers, which includes other brands like ShopRite and Gourmet Garage. As many of those banners already operate traditional one or two-hour delivery partnerships with Instacart, the success of Fairway Now could lead to more quick commerce build-outs across the region.
PARTNER | Restaurant Marketing Summit Returns Jan 31 - Feb 1
It’s that time of year again! The DRA Restaurant Marketing Summit powered by Branded is January 31st and February 1st and we want you to be the first to know!
Join the DRA for this free, two-day, virtual conference that brings together industry experts to showcase their knowledge and expertise on topics including: brand engagement, customer loyalty, customer acquisition, profitable 1P & 3P delivery, and utilizing data & marketing insights! You will hear from 20+ industry leaders including CEOs, Founders and speakers from Google, Ovation, Voosh, McDonald’s, Lineup.ai, Marqii, and more. Register Now!
POLICY | 9th Circuit to Hear CA’s Appeal of AB5 Case
Come March, a panel of 11 California state judges will hear the state’s appeal of the AB5 Olson case, as the independent contractor classification saga never seems to end. In an order issued on Monday, the 9th Circuit Court of Appeals vacated a three-judge appellate decision from March, which had partially reversed an even lower court’s decision. That lower court had rejected all the claims by Uber and Postmates. The case hinges on whether or not the 3PDs have equal protection of the law, as AB5 architect Assemblywoman Lorena Gonzalez may have been unduly prejudiced against gig platforms, while offering reprieves to other contract workers like musicians.
The Big Picture: Assembly Bill 5 expanded on the state’s Dynamex ruling, putting the burden of proof for classifying workers as independent contractors onto the hiring organization. In response, TNC and food delivery companies lobbied for Proposition 22, which after passing granted themselves an exemption to the new rules, alongside additional worker benefits. While AB5 may no longer bind the platforms in CA, it’s still in their interest to get it overturned, as it would be a meaningful precedent in the still hot labor regulation wars.
CHART TIME | $CART’s Rocky 2023
It’s been about 3 month’s since Instacart’s IPO, and boy what a rocky road it’s been. While the company went to market at $30 per share, which was a bit higher than earlier estimates, investor enthusiasm quickly rocketed it to the $42 range. Since then, the stock’s come back to earth, currently sitting between $24 and $25 a pop, giving the company a market cap just shy of $7 billion. In the same time period, the Nasdaq Composite (black line, above) is up shy of 12%.
VEHICLES | Micromobility Falters with Bird, Helbiz, Superpedestrian
It’s been a tough few days for electronic two wheelers, especially those of the shared variety. To wit: Superpedestrian is shutting down its American biz and looking to offload its European ops; Bird America was delisted from the Nasdaq and has just filed for reorganizational bankruptcy; and Micromobility.com (née Helbiz) was also just delisted from the Nasdaq. While it often violates the service terms, some delivery workers have relied on these shared micromobility services to scoot their food deliveries to the customer.
The Big Picture: Beyond the tangential tie to courier work, Micromobility.com also took a more meaningful stab at food delivery; opening up a “Kitchen” arm. Its Milanese outpost still seems to be operational, MrBeast Burger partnership notwithstanding. Its U.S. operations relied on Kitchen United MIX, which exited the ghost kitchen game late last month. Not all is lost in the world of small scale electric mobility: VanMoof, the sleek ebike maker that went bankrupt in August, is back in action, with a purchasable scooter in the works.
A Few Good Links
117-store supermarket Brookshire Brothers deploys eGrowcery. Consumer sentiment surges. Dollar stores hurt indy grocers. Frito Lay Snack Index (no infographic?!) Teamsters end DHL strike at CVG airport. Dunkin’ launching winter menu (disgusting.) DP Eurasia (Domino’s Turkiye, Georgia & Azerbaijan) rejects $81M takeover bid from Jubilant Foodworks. Waymo hits 7.1M miles with impressive safety record. Rite Aid banned from using facial recognition. VW Group adopts Tesla chargers. Uber for Biz partners with Brex and Ramp. Grocers highlight deals to drive digital adoption. Amazon logistics arm’s big 2023. Learning from the sriracha shortage. Greenlane opening EV truck chargers, touts Uber Freight tie-up.
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