Uber, Instacart Alums Build Ad Networks for Walmart, Paypal
Zypp Electric raises $15M, Deliveroo workers protest, phygital stats
Now that we’re done Memorial Day-izing, it’s back to the delivery beat, with big news from Walmart, Paypal, Zypp Electric, and Deliveroo.
And in case you missed it, we’ve now released the Uber Eats, DeliverZero and Butcher’s Daughter panel from Curbivore 2024 in podcast form!
Today:
3PD Execs Build Big Ad Biz for Walmart, Paypal
Zypp-ing Off with a Fresh $15M
Chart Time | Let’s Get Phygital! 🎶
Deliveroo Hit By Worker Protests
ADS | Walmart, Paypal Grow Advertising Arms
Yet more evidence that the entire social construct of “shopping” exists solely to let companies spin up higher margin advertising networks… Payments giant PayPal is launching a new ad platform, tapping into its rich customer data to target shoppers with ads and personalized promos. While its first product, Advanced Offers, works with the company’s existing customers, PayPal also plans to sell data-rich ads on other sites and connected devices. On the other end of the digital-physical divide is Walmart, which has recently beefed up its own ad division. While Walmart Connect only did $3.4B in sales last year, compared to over $600 billion in retail sales, its margins are juicy enough that it contributed a whopping 7.5% of the Bentonville Big Boxer’s (or should we say… Arkansas Ad Exec?) EBITDA.
The Big Picture: Both these ad initiatives are being led by former 3PD execs, who’ve proven they’ve got the chops to glue together the physical and digital worlds. PayPal’s project is led by Mark Grether, who was the Vice President, General Manager of Uber Advertising, which he grew to a billion dollar plus business. Prior to that he did ads at Amazon, and led Sizmek and WPP Xaxis. Walmart’s big adman is Seth Dallaire, who built Instacart’s ad service while serving as CRO, having previously sold ads at Amazon, Yahoo and Microsoft. This isn’t to say that the 3PDs aren’t still cooking up their own ad innovations; IC recently launched a big partnership with NBCUniversal, as it looks to merge the physical and digital realms as well. Overseas, DoorDash-owned Wolt also just took a new ad platform live.
FINANCE | Zypp Raises $15M for E-Moped Rentals
Zypp Electric, based out of Gurugram (near New Delhi) just raised $15 million from Japanese energy conglomerate ENEOS, as it looks to expand its electric moped rental service. Beyond growing in India, Zypp plans to expand to Southeast Asia, where two and three-wheelers are also dominant. Zypp’s Series C isn’t completely filled yet, with the company targeting a total raise of $35-40M, perhaps from existing investors, which include Gogoro, Goodyear Ventures, Google for Startups, Shell E4 and Indian Angel Network.
The Big Picture: Zypp currently has 22,000 vehicles on the road in Bengaluru, Mumbai and Hyderabad, which it aims to double by next year. The company is somewhat unique in the vehicle-as-a-service space in that works with both gig workers and fleets directly. The former account for 28% of Zypp’s revenue, with couriers, 3PDs and ecommerce platforms like BigBasket, DHL, Swiggy and Zepto accounting for the remainder. (At least in India, it’s not uncommon for a food delivery network to directly provide a worker with a vehicle.)
CHART TIME | Delivery vs Pickup Preferences
The physical and digital worlds continue to draw closer, thanks to delivery and pickup, self service kiosks, apps, and so much more. But customers have different affinities for each mode, as evidenced by Tillster’s 2024 Phygital Index Report. Frequent customers prefer restaurant-specific apps and websites, while 3PD platforms appeal less to consumers who prefer to pick up their meals.
LABOR | Deliveroo Workers Stage Protest
While London-based delivery platform Deliveroo was recently hosting its annual general meeting, its driver community had plans of its own: a protest. Riders of all stripes came out to highlight what they call “soul-destroying” working conditions, claiming the 3PD has failed to engage with them over wages and job security standards. While Deliveroo formed a partnership with the GMB union in 2022 and pledged to guarantee wages of £12 ($15.26) an hour while handling orders, workers protest that after expenses and wait times, their take-home falls below the national minimum wage of £11.44.
The Big Picture: Deliveroo isn’t the only 3PD hit by recent worker action. Glovo’s Nigerian branch has seen couriers take to the streets as well, with workers saying the company’s Spain-based insurance provider does not provide the benefits they were promised. Benefits and working conditions, more than pay, seems to be an emerging source of concern for many international 3PD workers, especially in countries where delivery workers skew older. Pakistani workers on platforms like Careem and InDrive note physical aches and pains, and want the apps to bake in bathroom breaks. Meanwhile many apps in Southeast Asia specifically preclude elder workers, leading some government advocates to ask companies like Gojek and Grab to consider revising those policies.
A Few Good Links
File this one under “high trust society” — Austrian postal service introduces new “smart lock system” that lets residents allow package carriers to directly enter homes. Uber Eats adds new food allergy alert feature. CosMc’s launches loyalty app. CA State Assembly advances AV safety operator bill, similar to one vetoed by Gov. Newsom last year. Talabat debuts new rewards program in Jordan. Tesla Supercharger team comes crawlin’ back to mama. Franklin Junction ducks ghost kitchen woes. Cava hopes steak will juice late-day sales. Roark breaks record with Subway debt sale. Uber Bubbles. Port of Long Beach adds EV chargers. Amazon vet heads to FreshRealm. Kroger fulfillment workers unionize. Stop & Shop shutters underperforming stores. The case for C&S buying those divested Kroger-Albertsons stores. Amazon Fresh cuts prices. 3PD stock woes. Pizza Hut (Canada) Cheeseburger. Stride portable benefits head to UPS-owned Roadie. Domino’s China gets feted at Domino’s Worldwide Rally 2024. Deliveroo offers flowers to Brits with floral names. Gopuff notes top wines in various cities.
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