Uber, Instacart, Walmart Test Different BFCM Tactics
Uber, Instacart, Walmart Test Different BFCM Tactics
Walmart parcel stations, Delivery Hero exits Vietnam, BFCM sales stats
It’s not just Monday… it’s Cyber Monday! We’ll take a look at how different platforms are treating this most remarkable of holidays, and share some early sales data. Plus, Walmart’s rolling out parcel stations and Delivery Hero’s taking the last chopper out of Vietnam.
This week’s edition is brought to you by Curbivore’s 2-for-1 BFCM Sale.
Today:
Different Ways to Win the BFCM Wars
Walmart Launches Parcel Stations
Chart Time | Holiday Sales Start Strong
Delivery Hero’s Baemin Exits VN
BFCM | Platforms Roll Out Cyber Monday, Giving Tuesday Savings
Wow, how quickly the clock rolls over from Black Friday to Cyber Monday… meaning it’s time to check in on how the biggest delivery platforms are handling this remarkable holiday. Uber is doling out five weeks of savings (perhaps inspired by Grubhub Gold Days?) that start with 60% off extra sticky Uber One membership, and then rolls to big deals with brand partners like CVS, Starbucks, PetSmart, Walgreens and Edible Arrangements. Kroger is also really pushing its membership program, offering half-off Boost by Kroger Plus, which should help it increase cart sizes throughout the year. Amazon of course has too many discounts to count, but it’s worth analyzing which deals seem to be worth the corporation calling out on its blog: 44% off Roombas, 46% off Instant Pots (no way that company recovers from bankruptcy now…), TVs from both Sony and HiSense, plus seemingly plenty of skincare. Walmart.com doesn’t just have deals, they’ve redesigned their entire mobile shopping experience to maximize the occasion: you can probably learn more from how they’ve configured customized wishlists as opposed to noting that people can save $2.32 on cubic zirconia tennis bracelets.
The Big Picture: It may only be Monday morning, but plenty of brands are also rolling out their do-gooder Giving Tuesday promotions as well. Instacart is teaming up with the Partnership for a Healthier America, plus Keurig Dr Pepper, Dole and Olipop to give away one million meal servings. Not to be outdone, DoorDash is working with local charities in CA, MA, MI, NY, WA and DC to deliver holiday meals. Other brands are counter-programming — 7-Eleven has special deals for its rewards members — but not on Black Friday or Cyber Monday. Instead, the convenience and speedy delivery chain is offering deep discounts specifically on Thanksgiving Eve, Xmas Eve, Xmas Day, NYE and New Years Day.
PARTNER | Two for One Tickets to Curbivore - $49.50 Each!
It’s only appropriate we offer our own Cyber Monday deal… two for one tickets to our acclaimed industry conference, Curbivore. That means each ticket is just $49.50, more than 90% off the day of price. Meet the leaders building the future of delivery, mobility, automation, technology, curb management and policy, in a purpose-built locale in Downtown Los Angeles, March 28 & 29.
OPS | Walmart Speeds Delivery With Parcel Stations
Walmart is adding a new delivery feature to select stores: parcel stations. Jennifer McKeehan, SVP of Transportation & Delivery says to think of them as a “mini post office that receives and delivers packages.” Packages will originate in a fulfillment center, might stop at a sortation center, and are then brought to a properly equipped store, where last mile delivery is handled by Walmart’s private fleet. The company is deploying in CA, TX, FL, IL, IN, PA, MD, NJ and CT by year’s end.
The Big Picture: Walmart’s initial deployment hits just 40 stores, a far cry from its 4,000 stores that operate as a delivery hub of some sort. Overall, the retailer now operates 4,700 stores in the U.S., meaning it’s within 10 miles of 90% of the country’s population. As the company makes use of its amazing density, it can drive down LMD costs; in the company’s recent Q3 it noted it had already lowered store-to-home delivery costs by 15%. While this latest innovation is geared towards moving back the cutoff time for next-day delivery, expect to soon see further refinements to same-day as well. CEO Doug McMillon noted that its GoLocal arm has made almost 12 million deliveries, while online orders fulfilled by stores has jumped eight percentage points in the last year.
CHART TIME | Holiday Sales Start Strong
With BFCM marking the start of the holiday shopping season, the National Retail Foundation is predicting we’ll see a 3 to 4% rise in sales this year, down a bit from last year, but in line with historical norms. Meanwhile Adobe Analytics says online revenue surged 7.5% YoY over Black Friday, hitting a record $9.8 billion. Cyber Monday is estimated to rise 5.4% to $12+ billion, with Cyber Week coming in as high as $37.2B.
3PD | Delivery Hero’s Baemin to Exit Vietnam
Baemin, the delivery subsidiary of South Korea’s Woowa Brothers, is exiting the Vietnamese market, effective December 8th. Woowa’s Baemin, short for Baedal Minjok (“nation of delivery”) has been owned by Germany’s Delivery Hero since December 2019. "Baemin’s decision to leave Vietnam was urged by global economic challenges and local intense competition," the company said. In August, Delivery Hero CEO Niklas Östberg noted that while the company was seeing good returns in Asia overall, Vietnam was neither profitable nor could it be for some time.
The Big Picture: Vietnam has been a tough market to crack; Baedal Minjok previously pulled out in early ‘21, before reentering. Despite spending millions on incentives, the company only held a 12 percent market share, according to Momentum Works, while Singapore-based Grab had 45% and locally owned ShopeeFood claimed 41%. Back in South Korea, Baemin / Woowa Brothers hold over 60% of the food delivery market.
A Few Good Links
Symbotic warehouse automation scores Southern Glazer’s as new client. Volvo buys Proterra’s EV battery biz. A soda civil war — Subway India switches from Pepsi to Coke. USPS strongly positioned for holiday surge. Target teams up with Tot Squad for new parent products. QSRs love kiosks. RTO bumping coffee and tea vendors. FTC eyeing Subway-Roark tie-up. Kitchen United says don’t call it a ghost kitchen. Chewy, Amazon add to year’s layoff count. Uber Eats delivers Big Lots partnership.
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