Delivery Hero Sees Speedy Growth in Q3
Swiggy locked in for IPO, Walmart welcomes Brightdrop, freight market booms
Looks like we’re ending the week with a smorgasbord of financial results, as Delivery Hero rounds out the big 3PDs, and other big food and tech brands show their sales as well. Plus, Swiggy is just about ready to join the public markets, the freight market is looking healthier and Walmart’s got some new electric vans.
Join us Weds 11/13 in Little Tokyo for our Mobility Mixer - Dinner, Drinks & After Party.
Today:
Delivery Hero Delivers Investors’ Growth
Swiggy Scores IPO Investors
Chart Time | Freight Recession Over
BrightDrop 400s Head to Walmart
FINANCE | Delivery Hero GMV Growth Picks Up
Delivery Hero reported its Q3 2024 results, seeing strong GMV growth of 9% YoY worldwide, and 25% in its non-Asia markets, taking total gross transactions to €12.2 billion and revenue to €3.2 billion ($3.4 billion.) That was up 19.2% YoY, a strong acceleration from 8.6% growth in Q3 ‘23. The company’s stock has been on a tear this year — up 57% — and the party should keep going with the planned spin out of its Talabat unit in the Middle East, targeted for Q4.
The Big Picture: That GMV growth bested the competition, as DoorDash clocked in with 19% growth, Uber pulled in 16% on the delivery side, and Just Eat Takeaway.com managed to shrink 2%. Other relevant financial results are coming in hot and heavy today, with Sweetgreen missing estimates by only growing revenue 13%, meanwhile Toast came up ahead of expectations with $1.3B in sales. Over in pizza land, Papa Johns comparable sales were down 6%. Noodles & Company also saw revenue fall, due to a drop in 3PD sales. Things were happier at caffeine king Dutch Bros, which grew revenue 28%. And CVS may be finally recovering, with improved sales making up for weak profit; the stock shot up 10% on the news.
EVENTS | Mobility Mixer - Dinner, Drinks & After Party — 11/13 in DTLA
Join your friends from Curbivore and Umojo for a lively evening of good food, great drinks and engaging conversation with the public and private sector leaders moving mobility forward on Weds 11/13 from 7:30 to 9 PM in Downtown LA.
It's a big week for mobility in LA, with the OMF Summit, CoMotion LA and Micromobility America all coming together — tap into the best of each world with our lively Little Tokyo after party!
IPO | Quick Commerce Darling Swiggy Ready for $1.3B Listing
India’s quick commerce leader Swiggy is finally ready for its IPO, having lined up buyers for its $1.3 billion tender, which aims for a $11.3 billion valuation. Initially backed by South African and Dutch conglomerate Prosus, Swiggy’s IPO is anchored by Fidelity and Invesco. This will be the second largest IPO in India for the year.
The Big Picture: Swiggy initially had a tough time taking this mega listing to market, achieving just a 12% subscription rate on day one of bidding. Investors might be a bit skittish after Hyundai Motors India’s $3.3 billion listing, the country’s largest for the year, has traded downward since going public last month. Shares of its larger rival Zomato have nearly doubled for the year to date, but both cos could be in trouble with regulators for potential antitrust violations.
CHART TIME | Freight Market Strengthening
It’s been a brutal two years for freight haulers, but the market is finally showing signs of renewed strength. Truckload spot rates have climbed to $1.78 per mile from $1.54 a year ago, while tender rejections are rising and capacity is set to get tighter in the face of new licensing regulations.
VEHICLES | Walmart Welcomes BrightDrop 400s
With its home delivery business growing rapidly, Walmart needs new trucks to meet that demand. It’s turned to GM for an electric solution, rolling out the BrightDrop Zevo 400 to Austin, Bentonville, Dallas, Denver, Detroit, Orlando and the SF Bay. Notably, Walmart opted for the smaller 400 model, which has about 2/3s the capacity of the larger 600, but its reduced wheelbase may be better fitted for tight urban conditions.
The Big Picture: While Walmart first reserved 5,000 BrightDrops back in 2022, getting them actually onto the streets could give GM a much needed boost. The automaker has sold 992 of these vans in the first three quarters of the year, up from 333 in Q1-Q3 ‘23. Perhaps the organizational overhaul GM pushed through early this year is finally paying dividends.
A Few Good Links
Amazon Mexico partners with online grocer Jüsto. Fed rate cut may rejuvenate delivery and mobility investment. Tiki Barber talks Amazon Hub Partners. Instacart Carrot Tags come to ALDI, Gelson’s, and Hornbacher’s. Serve buys Vebu in all-stock transaction, after Q3 revenue comes in at $220k. Lucid kicks off sales for Gravity SUV. Denver voters OK investment package for downtown housing, businesses and public space. Yelp buys RepairPal. Neobank Revolut subscribers gain Wolt+ memberships. Argentine regulators accuse MercadoLibre of monopoly. Amazon and Google file parallel lawsuits against fake review website. POSer Lightspeed sees revenue up 20%. Sweetgreen tests fries. Krispy Kreme explores third party delivery. Craveworthy Brands looks to intro new international franchises.
Don’t forget to register for Wednesday evening’s reception — spots are limited!
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