All articles tagged with #grocery delivery
Amazon's expansion into same-day grocery delivery has increased competitive pressure on Uber, causing its stock to dip slightly. Despite this, Uber's diversified platform, strong Q2 performance, and strategic investments in autonomous vehicles and platform integration suggest it remains a promising investment, with analysts rating it as a 'Strong Buy' and a potential 60% upside over three years.
Amazon is expanding its same-day grocery delivery to over 2,300 U.S. cities, boosting its efforts to capture more of the $1.5 trillion grocery market, which has negatively impacted competitors like Instacart and other grocery stocks. Amazon's move includes new services and existing infrastructure, aiming to strengthen its position in online grocery shopping, while competitors face declines in their stock prices.
Swiggy, a leading food-delivery startup in India, successfully launched a rapid grocery delivery service, overcoming skepticism from investors and competition from major players like Amazon and Tata's BigBasket. CEO Sriharsha Majety convinced investors of the potential for growth in the online grocery market, especially during the Covid lockdowns, leading to Swiggy's competitive edge in the industry.
Kroger is shutting down its grocery delivery facilities in San Antonio, Austin, and South Florida, citing failure to meet success benchmarks. The closure includes a 67,000-square-foot facility on the Northeast Side of San Antonio, which employed over 160 people and utilized a high-tech fulfillment model. The last day for orders is May 24, with deliveries ending on May 25. Customers can still use Kroger Delivery until then, and Boost membership holders can receive full refunds.
Instacart's stock experienced an 8% drop following its fourth quarter earnings report, signaling potential volatility as the company approaches the end of its IPO lockup period. With consumers adding fewer items to their carts due to rising grocery costs, the company faces challenges in sustaining growth. Instacart has increased its stock buyback authorization and expects slower growth in Q4 2023 compared to the previous year. The departure of three executives has also raised concerns among investors.
Amazon is testing a subscription model for unlimited grocery delivery for Prime members in three U.S. cities. For an additional $9.99 per month, Prime members can receive unlimited delivery on Amazon Fresh and Whole Foods orders over $35, as well as unlimited 30-minute pick-up on any size order. This move is part of Amazon's efforts to compete with Walmart, Postmates, Instacart, and major grocery chains. The subscription fee is in addition to the standard Amazon Prime subscription. The pilot program is currently available in Denver, Sacramento, and Columbus.
A man in Blackburn, England received a shocking delivery when bags of his $186 grocery order were found to contain a large amount of human waste. The customer, Phil Smith, was disgusted and demanded that the online ordering platform, Iceland, pick up the contaminated bags. Despite initially being offered store credits, Smith insisted on a refund and called a health inspector to investigate the local Iceland branch. The company stated that they are conducting an investigation into the incident. This incident adds to a list of disturbing delivery mishaps, including a man receiving a stranger's ashes and a TikToker receiving dirty boots.
CBRE warns that office real estate values could fall another 10%, distress among mezzanine loans is on the rise, major leadership changes are reshaping the real estate industry in New York, retail properties are becoming popular in capital markets, and Amazon is expanding its grocery delivery service.
Amazon is expanding its Fresh grocery delivery service to non-Prime members across the United States. Previously available only to Prime subscribers, the service was opened up to non-Prime members in August. While Amazon does not specify the exact locations where Fresh orders are available, it confirms that it is now accessible nationwide. Non-Prime members will have to pay delivery fees ranging from $7.95 to $13.95, compared to the $6.95 to $9.95 fee for Prime members. Amazon plans to further expand grocery delivery and free pickups for non-Prime members at Whole Foods in the near future.
Instacart will expand its payment options in 2023 to include Medicare Advantage, Medicaid, and other supplement health benefits for grocery deliveries. The program, administered through Alignment Health, will allow eligible individuals to use their plan-sponsored funds to purchase groceries, wellness essentials, and over-the-counter medications for delivery via Instacart. This initiative aims to improve access to nutritious food and healthcare products for seniors facing food insecurity due to transportation challenges and economic instability. Instacart has been working to expand payment options to people on food stamps and welfare programs, and this move follows its acceptance of food stamps earlier this year.
Uber Eats plans to accept food stamps and healthcare benefits as payment for grocery delivery orders starting in 2024. The move aims to reduce barriers to fresh groceries for vulnerable populations. The company also plans to introduce an AI assistant to help customers find better deals and a feature called "Sales Aisle" for curated promotions and deals. Uber Eats' revenue from food delivery has been steadily increasing, reaching almost $11 billion in 2022.
Instacart shares fell 5% as the grocery delivery app failed to maintain its strong gains on debut, joining other recent stock market entrants. Concerns about inflation and higher interest rates have led to caution among investors. Despite slowing from pandemic highs, Instacart's orders continue to grow as people maintain their lockdown habits of ordering groceries and essentials from home. However, there are concerns about consumers' willingness to pay extra for home deliveries and the company's ability to sustain margin expansion and revenue growth in the face of increased competition from food delivery providers, Walmart, Amazon, and traditional grocers. Retaining new customers, especially older shoppers who prefer brick-and-mortar stores, could also be a challenge for Instacart.
Instacart's shares surged 43% in its Nasdaq debut, valuing the online grocery delivery business at around $11 billion. While the price increase dropped later in the day, ending up just over 12%, it marked the second successful IPO in a week. Instacart, which expanded into advertising and technology services, aims to revolutionize the grocery business by leveraging technology to meet changing consumer habits. Despite facing competition from Uber and DoorDash, the company has recently started making profits. The IPO was backed by major investors, including PepsiCo and Sequoia Capital.
Instacart's shares surged 40% in their Nasdaq debut, opening at $42, valuing the grocery delivery company at approximately $14 billion. The IPO, which was priced at $30 per share, marked the first notable venture-backed company to go public in the U.S. since December 2021. Instacart had to significantly reduce its stock price to attract public market investors, as its private market valuation dropped from $39 billion to $10 billion. The company has prioritized profitability over growth, reporting $114 million in net income in the latest quarter. Instacart faces competition from Amazon, Target, Walmart, and DoorDash, among others.
Instacart's stock surged 40% in its market debut, opening at $42 per share on the Nasdaq, after setting its IPO price at $30 per share. The grocery delivery app, valued at roughly $10 billion, raised its pricing range following the successful IPO of chip designer Arm. Instacart, which connects consumers with gig economy workers for grocery delivery, believes it is at the center of a "massive digital transformation" and sees potential for further growth in the online grocery market. The company reported revenue of $1.48 billion in the first half of 2023, with advertising accounting for 28% of that revenue.