Sweetgreen Unveils Annual Memberships
Owner.com raises $33M, Motional loses Aptiv, hot sauce nation
Loyalty, loyalty, loyalty. Evidently they’re bumping a lot of Kendrick at Sweetgreen’s geographically-appropriate HQ today, as the salad slanger unveiled new pricing for its industry-leading subscription program. Meanwhile, Owner.com and Motional both have money on the mind, but for very different reasons. And Instacart’s bringing the heat… read on!
Today:
Sweetgreen Unveils New Loyalty Option
Owner.com Raises $33M w/ SMB Focus
Chart Time | Some Like It Hot
Motional Loses Aptiv’s Support
LOYALTY | Sweetgreen Unveils Annual Memberships
Tech-forward salad purveyor Sweetgreen is updating its membership program, introducing an annual tier to its premium membership program Sweetpass+. Previously only available for $10/mo, the LA-based company will now let consumers opt in for $100/year. Sweetpass+ members receive $3 off a salad each day, delivery perks, special merch, and priority support (imagine all the things that can go wrong with your mission-driven grain bowl.) Sweetgreen also offers a free membership tier with smaller benefits like challenged-based rewards and a bday gift.
The Big Picture: Annual pricing is more an evolution than a revolution, but it should certainly help boost growth a bit by cutting down on churn. Sweetgreen’s Head of Marketing, Michael Kotick, revealed the program had grown 25% in the second half of 2023. Using Dashpass as a comparison, one can see that the premium membership retains 59% of subscribers after a month, but only 25% after a year; locking folks in for the whole ride keeps their dollars in Sweetgreen’s ecosystem longer.
ORDERING | SMB-Focused Owner.com Raises $33M
Owner.com, a startup focused on online ordering and web-building tools for small and mid-sized restaurants, just raised a $33 million series B. The Palo Alto-based company plans to deploy the capital towards expanding its engineering and product design teams, while producing additional educational content for restaurateurs. The funding round was led by Redpoint and Alt Capital, which also led the company’s seed and A rounds.
The Big Picture: Since its 2020 founding, Owner.com has been on a tear, tripling in size last year and the year prior. The company claims to now process “hundreds of millions of dollars annually on behalf of our restaurant partners” although that may mean its actual revenue is still only in the single digit millions. In a lengthy memo to the restaurant community, Owner.com states its plan to stand out in its crowded segment is by building a “HubSpot for Restaurants.” As Shopify and Klaviyo did for ecommerce brands, Owner.com hopes to do for dining, by making a platform that’s easy for owners and consistently simple for end user diners. That means bundling in online ordering, site building, SEO, CRM, SMS and mobile apps, while specifically *not* going after the POS segment.
CHART TIME | South Dakota’s Spice Aversion
The problem with being a brand that offers the same items across the country is that different parts of this bountiful nation have very divergent tastes. Instacart has mapped out America’s spice preferences, including most popular hot sauces, and an overall heat index (above.) Evidently if you offer a default hot sauce in the Dakotas, you should basically give those weaklings in SD some ranch dressing, while the tough roughnecks working North Dakota’s Bakken oil fields want you to apply the ghost peppers directly to their eyeballs.
AUTONOMY | Motional Loses Key Backer
Autonomous vehicle player Motional is losing one of its key backers, as the AV arms race continues to require cash, cash and more cash. Auto supplier Aptiv is stating it can no longer financially support Motional, which it and Hyundai have so far poured $4 billion into. “The costs related to delivering the tech principally, in and around hardware, really makes it challenging from an adoption standpoint in the mobility on-demand market,” said Aptiv Chairman and CEO Kevin Clark. Motional seems to be taking it in stride, stating “We’re confident in our funding roadmap and are well-positioned for the next phase of our commercialization. Our team is focused on scaling our driverless services, expanding Motional’s commercial partnerships and furthering development on Motional’s next-generation robotaxi in collaboration with Kia.”
The Big Picture: Despite attracting a bit less attention than say Waymo, Motional has been one of the big players in the robotaxi space; the company also made forays into AV deliveries, launching with Uber Eats in 2022, and adding Shake Shack as a national merchant late last year. Still, all the competitors are a long ways away from breaking even on their AV ambitions; GM just noted it lost $2.7 billion on Cruise last year, while the company notes it remains committed to the project, after its large round of layoffs.
A Few Good Links
Deliveroo adds sex toy and lingerie retailer Ann Summers to growing non-food marketplace, in time for Valentine’s Day. Restaurant price growth outpaces groceries. Chick-fil-A delivery lawsuit eligibility deadline approaches. Foodsmart secures backers for food-as-medicine solution. Amazon putting pressure on UPS’ volume. Amazon may be liable for dangerous marketplace products. Temu spent $3B on ads last year. ShipBob adds Adam DeWitt, former CEO of Grubhub, to board. 7-Eleven adds perks to push 7NOW deliveries during Super Bowl. Red Robin collabs with Juicy Couture — oh how relevant. Smart shuttle operator Zeelo acquires competitor Kula.
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