Delivery Hero Cornering Middle Eastern Market
DoorDash launches program for vets, Walmart & Amazon fight, DashPass metrics
Happy Friday! We’re keeping today’s update short and sweet so you can get yourself that much closer to shutting off your laptop and enjoying the weekend.
DoorDash Launches Second Cohort for Pathways to Success
Walmart & Amazon Battle for SMBs
Chart Time | DashPass Retention Metrics
DeliveryHero Goes All in on Saudi Arabia
3PD | DoorDash Launches Pathways to Success in SF
DoorDash is teaming up with the Department of Veterans Affairs and Zoomo to financially empower military veterans in San Francisco. 20 vets will be given e-bikes, safety gear and financial literacy education. The program targets the homeless and formerly homeless, as part of the VA’s mission to eliminate homelessness among veterans.
The Big Picture: While 20 participants is just a drop in the bucket compared to the nationwide issue; DoorDash has been doing variations of this initiative across the country, upping its impact. An earlier version in LA helped provide stability for a number of vets that were having trouble transitioning to civilian life. Overall this program shows how important (for better or worse) the gig economy has become for many on the financial margins of our society.
ECOMMERCE | Walmart & Amazon Duke It Out for SMBs
Walmart and Amazon may be known for their massive consumer businesses, but both do serious revenue to higher-profit small and medium business accounts as well. Walmart is doubling down, as it launches a new Walmart Business app, meant to speed the ordering of back-office supplies, streamline check-out, offer new spending analytics, and ties in ntegration with Angi for professional services.
The Big Picture: This move closely follows Amazon, which last month retooled its Business Prime Duo membership to be free for Prime members who also make business purchases; previously it was a $69/year add-on. While consumers are flighty, happy to check countless competitors for the best deal on something — business accounts are often stickier: buyers are prone to stick to their company’s designated app / account, especially when they’re spending “someone else’s” money.
CHART TIME | DashPass Customer Retention Over Time
Folks really enjoyed yesterday’s update on 3PD marketshare, so we thought we’d give you one other interesting chart from Second Measure’s latest data. Here we can see churn for DashPass - DoorDash’s free delivery membership program. Does anyone at Uber or Grubhub have some data of their own they’d like to share?
3PD | DeliveryHero Doubles Down on Saudi Arabia
German food delivery conglomerate Delivery Hero is snapping up the 37% of HungerStation that it didn’t already own, in a deal valued at $297 million. HungerStation has over 10,000 restaurants and grocers on its network, which includes both Saudi Arabia and neighboring Bahrain
The Big Picture: Delivery Hero has been hunting for international growth, after throwing in the towel in its native Germany, which it ceded to Just Eat Takeaway. It already owns Talabat, which is the overall Middle East market leader, with a strong presence in Saudi Arabia + Bahrain, as well as Kuwait, the UAE, Oman, Qatar, Jordan, Egypt and Iraq. In Q1, Delivery Hero did about €2.3B in GMV in the MENA region, as compared to €1.8B in Europe, €700M in the Americas, and a whopping €6.5B in Asia.
A Few Good Links
Wednesday’s deep-dive on Lidl’s woes looks prescient as the grocer announces 11 more store closings. Working link for InDrive U.S. launch - oops! US Xpress on track for profitability in 2024. Thomas Keller opening new restaurant in Santa Barbara. 7-Eleven adds new, LTO wings flavor. Chipotle digital marketing VP jumps ship, notable accomplishments include scaling rewards platform to 33 mil. Square targets larger restaurants with ex-Toast hire. 7/27 webinar on electrifying delivery vehicles, updating city policies.
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