NYC Mayor Adams Vetoes Closure of Instacart Loophole
America's fastest growing chain barely sells food, QSRs > FCRs, Instacart's 90's-tastic concert
We’re finishing the week off with a real mix of stories: a huge (yuuuuge) policy update out of NYC, a few very wacky ad campaigns, hot sales stats and of course some macro-economic ponderings. Let’s get into it!
This week we have extra industry coverage, thanks to our partners at Gridwise.
We’ll be off on Monday, returning on the 25th.
Today:
Instacart & Shipt Get NYC Reprieve
Instacart Parties Like It’s 1999
Chart Time | What’s the Fastest Growing Chain in America?
Fast Casuals Flounder in Q2
POLICY | NYC Mayor Vetoes Closure of Instacart Loophole
Instacart and Shipt are letting out a sigh of relief, as New York City Mayor Eric Adams vetoed Intro 1135 and 1133, which aimed to close the “Instacart loophole” left over from the city’s earlier regulation of restaurant delivery apps. “Grocery prices are already too high, so now is not the right time to do anything to drive these prices even higher,” claimed the Mayor in a statement. This comes as Instacart boasted that improved worker efficiencies, like order batching, were a big driver behind its strong Q2.
The Big Picture: Modern Delivery reached out to Instacart for comment; a spokesperson said:
“Instacart has long supported and advocated for a thoughtful minimum earnings structure for grocery delivery workers in New York City – one that fairly balances the needs of workers, customers, and local retailers. But based on the City’s own data, Int. 1135 as written could drive grocery delivery prices up by a staggering 46%, cut off access to work for thousands of NYC delivery workers, and increase fees on small local grocers by as much as 13%. We thank Mayor Adams for recognizing this reality by vetoing 1135, for listening to the growing chorus of New Yorkers speaking out against this harmful legislation, and for giving the Council a second chance to consider the devastating impacts the bill would have on the thousands of grocery delivery workers who could lose access to work. With food prices already straining household budgets, and with 84% of New Yorkers saying even a $10 increase in grocery costs would be a burden, we continue to stand with the thousands of Instacart customers and shoppers in New York City who have spoken out against this bill. We strongly urge the Council to reconsider this legislation. Instacart has consistently supported an hourly standard, but it must be paired with realistic, commonsense rules that ensures shoppers can earn fair, dependable wages while preserving the flexibility that drew them to grocery delivery work in the first place.”
As the company hints at, the legislation will now return to city council, which likely has the votes to overrule the veto. Groceries have become a contentious political issue in the Big Apple, both inside City Hall and out. Zohran Mamdani, leading Adams in the election polls, has made the idea of city-run grocery stores a key tenet of his mayoral campaign.
PARTNER | DoorDash vs. Uber Eats: The Flower Delivery Battle That Could Shape the Future of On-Demand’s Delivery
Mother’s Day. Valentine’s Day. These aren’t just big days for gifts — they’re a battleground for retail delivery dominance. For many customers, their first non-food delivery happens on a holiday. That first experience can shape loyalty for every delivery after.
The Gridwise Special Occasion Report unpacks how platform performance on key dates is revealing early leaders in the race for retail.
Mother’s Day demand exploded: Delivery volume spiked 1,174% above baseline in 2025, up from 723% in 2024.
Uber Eats surged on Valentine’s Day: Its market share jumped from 25% to 52% — more than doubling overnight.
DoorDash market share declined on Mother’s Day: Market share fell from 60% to 43%, marking a significant year-over-year drop.
🔗 Get the full report and see what these seasonal shifts mean for the future of delivery.
MARKETING | Instacart Plans Third Eye Blind Concert
Instacart is partying like it’s 1999, hosting a free concert with Y2K-era rockers Third Eye Blind. The “Semi-Charmed Life” rockers will be joined by other nostalgic brand activations like Capri Sun, Ring Pop and Lunchables. The promotion is in service of Instacart’s recent “Summer Like It’s 1999” campaign, where the 3PD is offering Clinton era prices on items like Otter Pops, Bagel Bites and Hot Pockets (oww, my stomach!) Note to Instacart — your concert venue, Terminal 5, has more of a 2000’s vibe; Bowery Ballroom or Mercury Lounge would have been a better choice…
The Big Picture: IC isn’t the only brand leaning into big activations. DoorDash is doing one a bit more timely: teaming up with Ace Pickleball, after its very au courant marketing partnership with Major League Pickleball. Bolt’s got a fun new campaign in the works too: the Bolt Vroom will bring muscle-car sounds to shared scooters across the streets of Germany and the Baltics.
CHART TIME | America’s Fastest Growing Restaurants Aren’t Really Restaurants?
Which chains expanded the most last year? Starbucks led the way (despite faltering same store sales) followed by Krispy Krunchy Chicken. Meanwhile, Subway and KFC sank like a greasy drumstick in your tummy. Readers likely know that Starbucks has a rather limited food menu, but if you’re not as familiar with Krispy Krunchy Chicken, they can usually be found inside of gas stations. Yum yum, wonder where they get that frying oil?!
OPERATIONS | Will QSRs Eat FCRs’ Lunch?
As we recently covered over at The Curbivore, it’s been a tough quarter for America’s fast casual restaurants. Once-hot chains like Cava, Sweetgreen and Chipotle have seen same-store sales growth slow or even reverse. Overall spending growth at restaurants dipped 0.4 percentage points in July, versus the month prior. "Pressure on consumer spending for many of our consumers has persisted longer than we expected," noted Sweetgreen CEO Jonathan Neman.
The Big Picture: Evidently, Americans aren’t yet giving up on food entirely… they’re just trading downwards. McDonald's posted 2.5% growth last quarter. Sales are up at Taco Bell. And Campbell's CEO Mick Beekhuizen remarked in June that "consumers are cooking at home at the highest levels since early 2020." And as we saw on Wednesday, that can of soup was likely delivered.
A Few Good Links
UPS seems to be ignoring its commitment to NYC’s delivery microhubs. So maybe progress will come down to these two new job openings at the city’s Department of Sustainable Delivery: Policy Analyst and Senior Policy Analyst. Whizz claims EBITDA break-even. Via IPO may open floodgates for delivery and mobility startups. Noodles & Co Q2 revenue dips. Rapido launches Ownly delivery service in Bengaluru, India, aiming to beat competition with ultra-low rates. JD.com struggles to fight Meituan and Alibaba in China. Instacart adds Etsy’s Josh Silverman to board. Lyft updates board, governance. German fintecher N26 faces leadership turmoil over compliance struggles. Air Canada strike may hit supply chains. ATA seeks DOT decision on weed reclassification. Chinese exports of plug-in hybrids surges, while the country doubles down on AVs internally. Toast’s summer restaurant trends. Yelp’s top cities for building community is mostly big ol’ metropolises. iFood news: understanding restaurant partnerships, Sao Paulo crime reduction, sustainable innovation, and AI-powered WhatsApp channel for merchants. Universal Logistics volume falls. USPS to require Harmonized System codes. Target cuts ties with Ulta beauty. Hy-Vee Health partners with Oscar on concierge care for employers. Deliveroo partners with Otto Scooters and PORT for courier micromobility rentals.
P.S. — check out this sweet, vintage 1980’s Domino’s three-wheeled delivery rocket, for sale on Bring A Trailer and first spotted by our friends at HNGRY.
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