Amazon Debuts New Grocery Delivery Subscription As DoorDash Adds Banners
PizzaBox launches, Foxtrot closes, digital grocery data
Today’s edition is particularly grocery-focused, but we think when you see Amazon and DoorDash duking it out, there’s definitely something for everyone to learn. And for you resto-heads, do read on to see the latest tool for pizza punters.
Today:
Amazon & DoorDash Fight for Your Grocery Dollars
What’s in the (Pizza) Box? AI, Of Course!
Chart Time | Grocery Delivery Growth Data
Chicago Grocers Outfoxed By Competition
3PD | Amazon Debuts New Subscription, DoorDash Adds Banners
Amazon’s throwing its hat back in the grocery ring, with the launch of of a new $9.99 per month subscription tier, which gets members existing Prime members unlimited grocery delivery from Whole Foods, Amazon Fresh, plus other local grocery and specialty retailers on orders over $35. Amazon’s also making a play for lower income and SNAP customers, as those with registered EBT cards can buy in for just $4.99 per month, no Prime subscription required. This builds off a pilot that Bezos & Co did in Denver, Sac-town and Columbus late last year; the “specialty retailers” include brands like Cardenas Markets, Save Mart, Bartell Drugs, Rite Aid, Pet Food Express, and Mission Wine & Spirits.
The Big Picture: Consumers are really getting a whole lot of grocery delivery options these days. Not to be outdone, DoorDash is adding a slew of new grocery partners as well. In the Northeast, it’s partnering with Wakefern Food Corp to add 365 supermarkets, including ShopRite, Price Rite Marketplace, The Fresh Grocer, Fairway Market, Gourmet Garage, and Dearborn Market. On the West Coast, it’s adding about 100 new markets from a number of different operators: Vallarta Supermarkets, New Seasons Market, Haggen, Mother’s Market, and Jimbo’s. Real grocery heads will note that with the addition of Haggen, DD now has delivery partnerships with each and every one of Albertsons’ myriad banners.
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ORDERING | PizzaBox AI Targets Indy, SMB Pizzaiolos
PizzaBox AI, a new offering from RestoGPT, aims to give independent to medium-sized pizza operators a new, cost-effective way to handle online orders. The platform includes: commission-free online ordering that works with existing POS systems; customized restaurant website and direct storefront; catering platform; AI-driven CRM and customer engagement tools; email and SMS marketing tools; delivery dispatch and driver management; on-demand driver integrations; rating analytics and real-time reporting.
The Big Picture: Company founder (and Modern Delivery advisee) Gary Chaglasyan notes “we’re thrilled to announce the launch of PizzaBox AI, a revolutionary new platform designed to empower local pizzerias. This commission-free solution is built to compete with major chains, giving your favorite neighborhood spots the tools they need to thrive in the digital space.” Offerings like this may appeal to small restaurateurs that want to avoid the 3PDs’ marketplace fees, while also putting pressure on pizzeria-specific leader Slice.
CHART TIME | Grocers Transition to Digital
Time for another look at how grocery has gone digital. Grocery Doppio puts last quarter at $31.4 billion in sales, topping Bright Meets Click’s $24.7B estimate. While digital sales are up a healthy sounding 5.2% YoY, that actually trails the growth in groceries overall. And while supermarkets report that profitability has improved, the industry still manages to see an average margin loss of 13 cents per digital order.
BRANDS | Foxtrot & Dom’s Shutter Stores Across IL, TX, DC
Foxtrot and Dom’s Kitchen & Market, which recently merged into Outfox Hospitality, are suddenly shuttering all 33 of their locations. The two companies both raised tens of millions of dollars as they rode the pandemic boom, with a business that started as a sleek app for booze and snack delivery, before building out physical retail spaces that combined schmancy groceries with high end coffee and prepared foods. While the two brands were HQed in Chicago, they also had a growing presence in Dallas, Austin and Washington, D.C.
The Big Picture: This looks to be the latest brand that overplayed their pandemic-related success, growing too fast instead of focusing on the business fundamentals. DC in particular is proving to be a tricky market to make it in for many of these nouveau operators: tech-friendly coffee slanger Blank Street has seen also seen a big-time retrenchment in the nation’s capital. (Although its push into the U.K. seems to be proceeding, even though the founders have previously noted it’s costing more than expected.)
A Few Good Links
Pipedream Labs raises $13 million, led by Starship Ventures. Venezuelans have become the unsung heroes of delivery in D.C. Philip Reinckens appointed SVP of Commercialization and Operations at Gatik. GM quarterly profit up 24% as Tesla’s profit tumbles 55%. Hesai launches new ultra-wide FOV, long range Lidar, note the company’s delivery partners like Nuro, Aurora, Kodiak and Meituan. NYC restaurant reservation systems overrun by scalpers. Korean retail leader Homeplus happy with instant delivery push. DoorDash has new data on Seattle post-wage increase. FTC bans noncompetes, expect to see more startups flourish. Starbucks fight NLRB. Delivery regulation updates. E-truck maker Lion Electric cuts 9% of staff. Gelson’s names new CEO. NYC sees influx of smaller format grocers. Amazon expands drone delivery to Phoenix. Canada ponders increasing grocery competition. Walmart pushes BNPL. GreenPower debuts electric utility truck.
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