Uber Eats Highlights New Verticals in UK
3PD marketshare update, Shipt shines, FedEx cuts
Cheeky new delivery ad campaigns, corporate head cutting, subsidiaries outshining their overlords, and of course a big ol’ 3PD chart update — this edition has something for everyone; read on!
Uber Gin, Uber Tonic, Uber Ice, and Uber Lime
FedEx Cuts Heads as It Diverges from UPS
Chart Time | 3PD Marketshare Update
Shipt A Rare Bright Spot for Target
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3PD | Uber Highlights Push Into New Verticals in UK
Uber is launching a new advertising push in the United Kingdom, highlighting that Eats ain’t just for eatin’. “This campaign aims to help break the misconception that Uber Eats only delivers from restaurants,” says Uber Eats UK Grocery and New Verticals GM Alex Troughton. The campaign is making a splash across OOH and social, highlighting not just Uber’s liquor and grocery selection, but new verticals like pharma, flowers, and even retail options from iconic British brands like Boots.
The Big Picture: Americans may remember a similar push by Uber a year and a half ago, where the company scored a media touchdown at the Super Bowl, when ads showed celebs like Jennifer Coolidge and Trevor Noah “eating” light bulbs, deodorant and all sorts of non-food items available on the 3PD. As Uber’s network in the UK has caught up with its stateside selection as part of its ongoing battle with Just Eat and Deliveroo, they’re telling a similar story, albeit with localization done by its longtime ad agency Mother.
LOGISTICS | FedEx Delivers Pink Slips, Heads to Cost Cutting Mode
3PL giant FedEx is getting leaner and meaner, as it just cut an additional 843 jobs as part of its Network 2.0 Initiative; the layoffs were concentrated in Indiana, Pennsylvania, Texas, Colorado and Ohio. As of June, the company had already cut 29,000 employees over the trailing 12 months, as the courier looks to shift more volume from employee-powered Express services to independent contractor-powered Ground services.
The Big Picture: While UPS’ recent labor pact shows you can reward your workers and still reap big profits, FedEx has been headed in the opposite direction. Since Q1 2020, the company has seen more quarters where operating income shrank than ones where it grew, while its maroon-colored competitor has been consistently delivering growth. FedEx’s on-time rate steadily sits below that of UPS and USPS, suggesting that perhaps ICs aren’t getting the job done quite as well, and customers are responding by taking their dollars elsewhere.
CHART TIME | 3PD Marketshare Update
Another month, another Second Measure chart highlighting the standings of America’s food delivery gladiators. Compared to last month’s metrics, the biggest change is that DoorDash’s share shrunk a point, down to 64%. Uber Eats, Postmates, Grubhub and ASAP stayed consistent at 23, 2, 10, and 1 percent respectively. DashPass retention looks to be 64% at one month, 32% at six months, and 26% at the one year mark.
RETAIL | Target Stumbles but Shipt Shines
Target released its Q2 results this morning, and overall it’s not a pretty picture. Comparable sales fell 5.4%, while digital comparable sales fell 10.5%. The Minnesota-based retailer also cut its full year sales estimates, as execs worry about rising interest rates and consumers dealing with the resumption of student loan payments. The company also stated it saw a material negative impact to sales after it pulled some Pride merchandise in the face of bigoted criticism.
The Big Picture: Things might not be looking so hot for the big red bullseye, but there is a glimmer of home: Shipt, the Instacart-like deliverer it acquired for $550 million way back in 2017. The company saw “same-day services” grow nearly 4%, coming off of “mid-single digit growth” in the previous quarter. Perhaps the subsidiary’s recent partnerships with hotel chains, or its ad campaign with Issa Rae, are starting to pay dividends.
A Few Good Links
D2C darling Away cuts corporate baggage. Grocery / meal kit startup HungryRoot hits $182M in H1 revenue, announces its profitable for YTD. Courial and SparkCharge team up on EV charging for couriers. Trucker Heartland Express projects weak Q3. Subway names new President for N. America. Brinker (Chili’s, Maggiano’s) sees sales rise 6.6%. VinFast stock pops on IPO, decelerates a bit today. Chick-fil-A manages to think up new flavor of chicken sandwich (honey pepper pimento.) Australia looks to change liability laws after couriers killed in traffic. CATL unveils new fast-charging EV battery. Freshly-public Cava boosts traffic 10%, hits profit for quarter.
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