There's Something Fishy at Red Lobster
Introducing Bolt Send for packages, Pango buys Gett, gig work wages fall short
Okay, today’s main story isn’t exaaaactly delivery-oriented. But the death of an iconic restaurant brand at the hands of shady tacticians makes for a must-read, and before that we’ve got big updates on Bolt, Gett and gig worker wages. We’ll be off for the Memorial Day holiday, see you Wednesday!
This week’s edition is brought to you by Nickelytics.
Today:
Bolt Starts Sending Packages
Israel’s Gett Bought by Pango
Chart Time | Gig Work Wage Woes
Endless Shrimp or Overpriced Leases?
PRODUCT | Bolt Launches Package Delivery
European TNC Bolt just launched Bolt Send, a new consumer-oriented package delivery service. Items to be sent are picked up by Bolt drivers and are geared towards being physically handed off to the recipient somewhere else in town. Packages must be under 15 kg and no larger than 65 × 55 × 40 cm. While Bolt now operates in 45+ countries, it’s starting by only launching this product in select markets. Send looks to be powered by workers that normally handle rides, not food delivery, as the new service is live in certain countries (like Nigeria and South Africa) where Bolt has shuttered its food arm.
The Big Picture: This product is somewhat similar to Uber Connect, which launched back in 2020. Uber’s continued to evolve the offering since then, including launching a package return feature last fall, and a store pickup function during the holidays. In general, Uber’s geared their product to be rather merchant-oriented, while Bolt’s initial foray looks to be squarely focused on usage by average Joe and Jane consumers. Most other TNCs have also taken the business-oriented route for their package delivery subsidiaries, such as Cabify Logistics or Gojek’s GoSend.
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FINANCE | Pango Buys Israeli TNC Gett
Tel Aviv and London-based ridehailing and delivery app Gett has been acquired by Pango, a parking tech provider. Gett’s current shareholders will receive $175 million for their current shares, as well as an additional $40M of the company’s current cash on hand. Over the years, Gett has raised a whopping $900 million, with Sweden’s VNV Global serving as its largest shareholder. Other major shareholders include VNV and Access Industries. Completion of the deal is subject to approval by the Israeli Competition Authority,.
The Big Picture: It’s been a bumpy road for Gett, founded in 2010 as GetTaxi. After launching in Israel, the company spread to markets like London and Moscow, which led to a big $300 million investment by Volkswagen in 2016. A year after that, Gett bought Juno, as it made a play for the NYC market. That looks to have been the high water mark for the company, as VW slashed the valuation of its Gett holdings in 2018, and it shuttered Juno a year after that. The company also launched a delivery service, but it’s more akin to an Uber Connect (or Bold Send, see above) than an Uber Eats or DoorDash. The company almost went public during the SPAC glory days, hoping to raise almost $300 million, but pulled the plug on that in early 2022. Pango, the company’s new owner, claims it will continue growing Gett’s ridehail and delivery arms in Israel and the UK.
CHART TIME | How Much Do Gig Workers Work, Earn?
A new study by the UC Berkeley Labor Center contends that ridehail and delivery workers make less than the local minimum wage in many major cities. The report also highlights the necessity of tips and Prop 22 to make ends meet, as well as the fact that most workers are using the apps on a nearly full time basis.
FINANCE | Questionable Practices Led to Red Lobster Bankruptcy
It’s not so often that a major restaurant chain goes bankrupt, but Red Lobster’s undoing is a particularly interesting tale. The seafood slanger has been owned by Thai Union since 2020, with its owner also serving as its main supplier of aquatic edibles. While many have teased that “Endless Shrimp” is what brought down the red giant, there may be some truth to that joke. Thai Union had written off the value of its investment, meaning it thought that in a bankruptcy it would be unlikely to recover much value. That’s when the Thai Union appointed CEO started pushing for the Endless Shrimp promo, over the objection of other company leaders, essentially serving as a way for Red Lobster to move cash (for critters) to its Bangkok-based owner.
The Big Picture: The corporate shenanigans sadly go even further back. Thai Union purchased Red Lobster from private equity group Golden Gate Capital, who in turn had taken it off the hands of experienced restaurateur Darden back in 2014. They were a classic “corporate raider” type of PE group, stripping the company of many of its best assets, including a deal where they sold off the company’s real estate and then leased them back at above-market rates. More so than the few million spent on shrimp, it was the $200M in rents that drove the company’s financial undoing.
A Few Good Links
BK reintros $5 value meal. Hyzon readies 200-kW fuel cell trucks. 1-800-Flowers.com optimizes deliveries to offset rate hikes, as it narrows losses. OEMs turn to discounts to move vehicles. PepsiCo adds 50 Tesla e-trucks, 75 electric vans. Fleksa and Stripe launch SoftPOS for restaurants. Lucid Motors cuts 400 heads. Walmart and Capital One end credit card pact. Google invests $350M in India’s Flipkart.
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