November 6, 2024 • 25 mins
Explore the latest updates in food delivery with insights on DoorDash's growth and partnership with Lyft, grocery delivery expansions, and financial analyses of Lyft and Swiggy. Learn about Swiggy's IPO, Amazon's delivery strategies, and market trends featuring Instacart. Discover Skip's innovative partnership with Pipedream Labs, Dusit Foods' collaboration with Green House Co., and Uber Eats' drone delivery advancements. The episode also covers AI applications in food delivery and delves into future trends and sustainability efforts in the industry.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome back to The Food Delivery Daily!
I’m AI Michelle, here with today’s top stories,industry updates, and the latest news shaping
the food delivery landscape.
This is your Food Delivery Daily, brought toyou by MagicPod from PodcastAI.
Want to create your own AI-generated podcast?
(00:20):
To learn more, click the link in the shownotes.
Now, let’s dive in.
First up...
DoorDash, the well-known delivery serviceprovider, has reported an impressive 18 percent
year-over-year increase in total orders duringthe third quarter, marking its first operating
profit since 2020.
(00:40):
This significant growth, highlighted in thecompany’s earnings report on October 30th, sets
a promising tone as they anticipate even higherdemand during the holiday season.
DoorDash expects this surge in use to driverobust fourth-quarter profits, according to
Reuters.
In an exciting development, DoorDash hasannounced a partnership with Lyft.
(01:02):
This collaboration aims to offer exclusiveperks to their shared customer base.
Members of DoorDash’s membership program willsoon enjoy discounts and upgrades on select
Lyft rides, alongside a complimentarythree-month trial to the program for Lyft
account holders.
This strategic partnership is not only a boonfor customers but also a savvy move for both
(01:23):
companies to enhance customer loyalty andengagement.
Tony Xu, the CEO of DoorDash, elaborated duringthe company’s earnings call on October 30th, on
the expanding role DoorDash is playing beyondrestaurant deliveries.
Since 2020, DoorDash has been diversifying byoffering grocery and convenience store product
(01:43):
deliveries.
Xu noted that as customers become accustomed toordering groceries through DoorDash, they tend
to purchase more items with each subsequentorder.
He remarked, "We’re seeing a much bigger marketthan we expected," which underscores the
potential for continued growth in this segment.
The partnership with Lyft is particularlynoteworthy given the overlapping customer base.
(02:07):
Xu pointed out that many of Lyft’s passengersare also DoorDash customers, making this a
mutually beneficial arrangement.
Audrey Liu, Lyft’s executive vice president ofrider experience, emphasized that this
partnership provides additional incentives forriders to choose Lyft, further strengthening
the relationship between the two companies.
(02:28):
As we look ahead, Lyft is set to announce itsown third-quarter 2024 financial results on
November 6th after the market close.
It'll be interesting to see how thispartnership with DoorDash impacts their
financial performance and customer satisfactionmetrics.
Stay tuned for more updates as thesedevelopments unfold.
In a significant move for the food deliveryindustry, Swiggy has successfully raised five
(02:53):
thousand eighty-five crore rupees from a groupof esteemed anchor investors.
This strategic allotment occurred just a daybefore Swiggy's initial public offering, aimed
at instilling confidence and setting the stagefor other potential investors.
Among the notable investors involved in thisanchor round are prominent mutual funds such as
(03:13):
ICICI Prudential, HDFC Life, and SBI Life,along with global giants like Capital,
Fidelity, Amundi, BlackRock, and Schroders.
The initial public offering is set to open toall investors on Wednesday and will close on
Friday.
It comes at a pivotal time when the domesticmarkets are experiencing volatility, partly due
(03:37):
to significant selling from foreign investors.
Additionally, the market is still reeling froma lackluster performance by Hyundai Motor
India's recent initial public offering, whichhas not met expectations.
Swiggy's upcoming initial public offering,valued at eleven thousand three hundred
twenty-seven crore rupees, is poised to beIndia's sixth largest in the domestic market
(04:01):
and the second largest this year followingHyundai.
The offering includes a fresh fundraise of fourthousand four hundred ninety-nine crore rupees,
which Swiggy plans to utilize for expanding itsdark store network, investing in technology and
cloud infrastructure, and bolstering its brandmarketing and business promotion efforts.
(04:22):
Additionally, Swiggy aims to support inorganicgrowth through these proceeds.
Notably, three-fourths of the issue is reservedfor institutional investors due to Swiggy not
meeting profitability criteria, leaving just aten percent allocation for retail investors,
significantly lower than the typicalthirty-five percent.
(04:42):
This allocation strategy highlights Swiggy'sfocus on attracting substantial institutional
backing to navigate its current financiallandscape.
The initial public offering also includes asecondary share sale worth six thousand eight
hundred twenty-eight crore rupees by teninvestors, including Tencent, Accel India, and
Apoletto Asia.
(05:04):
The selling shareholders have acquisition costsranging from eleven rupees to one hundred
sixty-five rupees per share, with the priceband for the issue set between three hundred
seventy-one and three hundred ninety rupees pershare.
At the upper end, Swiggy's valuation reacheseighty-seven thousand three hundred crore
rupees, positioning it competitively alongsideits rival Zomato, which is currently valued at
(05:28):
two point one trillion rupees.
Swiggy has shown remarkable improvement in itsfinancial performance, narrowing its losses to
two thousand three hundred fifty crore rupeesin the fiscal year twenty-four from four
thousand one hundred seventy-nine crore rupeesthe previous year.
Its revenue from operations also surged toeleven thousand two hundred forty-seven crore
(05:49):
rupees from eight thousand two hundredsixty-five crore rupees in the prior fiscal
year.
From an investment perspective, SBI Securitieshas recommended subscribing to Swiggy's initial
public offering for the long term, citing thefair pricing of the issue based on various
financial metrics.
As Swiggy prepares to enter the public market,all eyes will be on how it leverages this
(06:12):
capital to further its growth and maintain itscompetitive edge against industry players like
Zomato.
Amazon is making significant strides inexpanding its grocery delivery services,
marking a pivotal moment in its strategicgrowth.
The online retail giant has announced a newpartnership with FoodMaxx, a well-known grocery
(06:32):
chain in California, and has extended itsexisting partnerships with Save Mart and Lucky
Supermarkets.
This expansion is not limited to the UnitedStates; Amazon is also venturing into the
Mexican market through a collaboration with thestartup Jüsto, aiming to provide grocery
delivery services across the country.
(06:53):
In Mexico, Amazon's partnership with Jüsto isparticularly noteworthy.
Jüsto, founded in 2019, will manage thedelivery of fresh produce, meat, and fish
ordered through Amazon.com.
This marks one of the few instances whereAmazon is entrusting the entire customer
experience to a third-party provider,highlighting the trust and potential they see
(07:14):
in Jüsto's capabilities.
Ricardo Weder, CEO of Jüsto, expressedenthusiasm about the partnership, emphasizing
the vast growth opportunity given that onlythree percent of the Mexican population
currently purchases groceries online.
Back in California, Amazon is enhancing itsdelivery offerings by including same-day
(07:34):
grocery delivery from select FoodMaxx locationsin Central and Northern California, covering
cities such as Bakersfield, Hayward,Sacramento, San Jose, and Turlock.
Additionally, Amazon is expanding its servicewith Save Mart to include new locations in
Auburn, Bakersfield, and Chico, as well as fourmore Lucky Supermarkets in Foster City,
(07:57):
Hollister, Napa, and Oakley.
These expansions are part of The Save MartCompanies group, which is keen on providing
convenient shopping experiences for allcustomers.
Tamara Pattison, Chief Digital Officer at TheSave Mart Companies, highlighted the importance
of this expanded partnership with Amazon.
(08:17):
She stated that it allows FoodMaxx shoppers toaccess high-quality fresh and local products at
affordable prices, a necessity in today'seconomic climate.
This collaboration is seen as part of a broadercommitment to offering the most convenient
shopping options available.
Christian Seitel, Head of U.S.
Grocery Partnerships at Amazon, shared hisexcitement about the partnership with FoodMaxx.
(08:42):
He noted that by working with more than twentygrocery and specialty retailers globally,
Amazon can deliver a wide range of products tocustomers seeking value and convenience.
This aligns with Amazon's mission to offerexceptional price, selection, and convenience
to grocery shoppers.
For customers, the process is straightforward.
(09:04):
They can visit the online storefronts of eachgrocery chain on Amazon to place their orders.
Prime members enjoy additional benefits, suchas a grocery delivery subscription offering
unlimited deliveries on orders over thirty-fivedollars.
This subscription, available at nine dollarsand ninety-nine cents per month or ninety-nine
dollars and ninety-nine cents annually, extendsacross Amazon Fresh, Whole Foods Market, and
(09:29):
other local retailers.
This strategic expansion by Amazon showcasesits commitment to enhancing customer experience
and convenience in the grocery delivery market.
As Amazon continues to broaden its partnershipsand reach new territories, it remains a
formidable player in the evolving landscape ofonline grocery shopping.
(09:52):
HTF Market Intelligence Consulting PrivateLimited has recently released an in-depth study
on the Global Online Takeaway Food DeliveryMarket, projecting a remarkable growth
trajectory from one hundred fifty billionUnited States dollars in 2024 to two hundred
fifty billion United States dollars by 2032.
This represents a compound annual growth rateof 7.5 percent over the forecast period.
(10:17):
The study highlights significant marketdevelopments and key players contributing to
this growth, including Uber Eats, DoorDash,Grubhub, and several other industry leaders.
The report categorizes the market into varioussegments, such as Platform-to-Consumer,
Restaurant-to-Consumer, Aggregator, and CloudKitchen.
It also examines applications across Fast Food,Casual Dining, Full-Service Dining, and
(10:42):
Specialty Food sectors.
Geographically, the market analysis spans NorthAmerica, Latin America, Europe, Asia-Pacific,
and the Middle East and Africa, providing acomprehensive view of regional consumption,
revenue, market share, and growth rates.
One of the standout findings is the dominanceof the Asia-Pacific region in the online
(11:04):
takeaway food delivery market, attributed toits large population and increasing internet
penetration.
Meanwhile, the Middle East and Africa areidentified as the fastest-growing regions,
driven by technological advancements andchanging consumer preferences.
The study indicates that cloud kitchens andartificial intelligence optimization are
(11:27):
playing pivotal roles in enhancing deliveryservices, offering speed and convenience to
consumers.
However, it also notes that profitabilityremains a concern for many players in the
industry, despite the promising growth outlook.
From a strategic standpoint, the reportunderscores the importance of understanding
market conditions through comprehensiveanalyses such as the Five Forces and PESTLE
(11:51):
analyses.
These tools help assess the bargaining power ofbuyers and suppliers, the threat of new
entrants, and the potential for substitutes,among other factors.
In terms of market challenges, the reporthighlights the competitive landscape,
emphasizing the need for companies to adapt toevolving consumer demands and technological
(12:12):
shifts.
It also points to opportunities for growththrough strategic partnerships, product
launches, and geographical expansions.
Overall, the Global Online Takeaway FoodDelivery Market study offers valuable insights
for stakeholders looking to navigate thisdynamic sector.
(12:32):
As the market continues to expand, players mustremain agile and innovative to capitalize on
emerging trends and maintain their competitiveedge.
Instacart's stock, trading under the tickersymbol CART, has been on a remarkable upward
trajectory, rallying by seventy-nine percentsince its initial public offering in September.
(12:54):
Despite this impressive surge, analysts believethere could still be room for further growth.
The company's strong performance can beattributed to several factors, including its
strategic partnerships, expansion into newmarkets, and continuous innovation in delivery
services.
One of the key drivers of Instacart's stockperformance is its ability to form strategic
(13:17):
partnerships with major retailers.
These collaborations have allowed Instacart toexpand its reach and enhance its service
offerings, making it a preferred choice forgrocery delivery among consumers.
Additionally, the company's focus on technologyand innovation, such as integrating artificial
intelligence to optimize delivery routes andimprove customer experience, has set it apart
(13:41):
from competitors.
Instacart is also actively pursuing new marketopportunities, both domestically and
internationally.
By entering new regions and adapting itsbusiness model to local market conditions,
Instacart is positioning itself for sustainedgrowth.
This strategic expansion is expected to drivefurther revenue increases and strengthen its
(14:04):
market position.
Furthermore, Instacart's leadership team hasbeen instrumental in steering the company
towards success.
The recent appointment of Fidji Simo as ChiefExecutive Officer has brought fresh
perspectives and strategic direction, whichhave been well-received by investors and
industry analysts alike.
(14:25):
Simo's vision for Instacart includesdiversifying the company's revenue streams and
exploring new business opportunities beyondtraditional grocery delivery.
Despite the positive outlook, Instacart facesseveral challenges, including intense
competition from other delivery services andthe need to maintain profitability as it
scales.
(14:45):
However, the company's strategic initiativesand strong market presence provide a solid
foundation for overcoming these obstacles.
For investors, the current valuation ofInstacart presents both opportunities and
risks.
While the stock's recent rally suggests abullish sentiment, potential investors should
consider the company's long-term growthprospects and competitive dynamics within the
(15:08):
industry.
As Instacart continues to innovate and expand,it remains a compelling player in the rapidly
evolving food delivery market.
In a noteworthy industry win, WestJet and fooddelivery service Skip have announced a
strategic partnership that promises to enhancetravel experiences for Canadians.
(15:29):
This collaboration introduces exclusive rewardsand benefits, marking a significant milestone
in both companies’ efforts to blend conveniencewith travel perks.
Jeff Hagen, WestJet’s Vice President ofCommercial Development and Strategic
Partnerships, emphasized the value thispartnership brings to WestJet Rewards members.
(15:50):
He stated, “Seamlessly blending convenience andtravel rewards for Canadians, our newly forged
partnership with Skip brings value and choiceto WestJet Rewards members in their everyday
lives.” This initiative aims to extendWestJet’s rewards beyond traditional travel,
offering members exclusive benefits andexperiences even when they’re not flying.
(16:14):
The first phase of this partnership introducesa series of benefits for WestJet Rewards
members and Skip customers, effectivelyextending rewards from coast to coast.
Notably, WestJet Rewards members will now havethe option to choose a Skip gift card as a new
milestone award, further integrating everydayconvenience with travel rewards.
Skip's Vice President of Marketing, RachelMacAdam, expressed excitement over the
(16:38):
partnership, highlighting the added value itbrings to Skip's newly launched membership
program, Skip+.
She remarked, “We’re thrilled to partner withWestJet, giving Canadians access to exclusive
travel perks and experiences on Skip.” Thisprogram is designed to cater to customers’
interests, including their love of travel, byunlocking exclusive benefits.
(17:03):
Looking ahead, both companies plan to roll outadditional features and offers in 2025 and
beyond, continuing to innovate and enhance thecustomer experience.
This partnership not only represents astrategic market shift but also sets a
precedent for how travel and everydayconvenience can be integrated to provide
comprehensive lifestyle benefits.
(17:25):
Pipedream Labs has unveiled a cutting-edgeunderground robotic delivery system at a
prominent quick-service restaurant,revolutionizing the way fast food is delivered.
This innovative system promises to deliver foodorders from the kitchen to the customer in
under 15 seconds, effectively transforming thefast-food experience into an "instant food"
(17:46):
phenomenon.
Based in Austin, Texas, Pipedream Labs isdedicated to redefining logistics with its
high-speed delivery solutions.
These underground robots are designed tofacilitate swift deliveries for quick-service
restaurants and other facilities, marking asignificant advancement in the food delivery
industry.
Canon Reeves, the co-founder and chieftechnology officer of Pipedream Labs,
(18:10):
emphasized the inevitability of autonomousdelivery systems in the future.
He pointed out the current challenges faced bydelivery robots, particularly in navigating
sidewalks shared with pedestrians.
Pipedream has ingeniously shifted thistechnical challenge into a financial one,
focusing on the cost-effectiveness ofinstalling and operating these underground
(18:31):
pipes.
Reeves explained that the cost of installingthese smart pipes is well-calculated, ensuring
that each delivery point along the pipe networkis financially viable.
This strategic approach allows Pipedream tofinance the infrastructure effectively, aiming
to drastically reduce delivery times andstreamline restaurant operations.
(18:53):
Pipedream Labs has previously raised $13million in venture capital, which has fueled
its rapid growth and ability to test itsbelow-ground delivery system in various
locations, including Peachtree Corners,Georgia.
The focus on quick-service restaurants has beenstrategic, as these establishments represent
the simplest application for their technology.
(19:15):
The company envisions expanding its system toinclude grocery stores and city-wide
deployments, showcasing its versatility andpotential to revolutionize delivery logistics
across different sectors.
The recent deployment at the drive-thru marks asignificant milestone in Pipedream’s journey
towards creating a hyper-efficient deliverynetwork.
(19:35):
The construction of Pipedream’s undergroundsystem involves a straightforward process of
cutting concrete, installing pipes, and settingup above-ground kiosks for customer
interaction.
This efficient construction method enablesquick deployment, with recent projects
completed in just four and a half days, andplans to further reduce this timeline.
(19:57):
Pipedream's innovative approach extends to itsabove-ground kiosks, or "portals," which are
engineered to be user-friendly and efficient.
These portals are a crucial component of thesystem, allowing customers to seamlessly pick
up their orders without the need for extensivetraining or instruction.
Looking ahead, Pipedream Labs aims to integrateits underground system with other delivery
(20:21):
technologies, envisioning a future where itssystem can collaborate with other autonomous
delivery solutions.
This vision includes the possibility ofsidewalk robots completing the final leg of
delivery, enhancing the overall efficiency andreach of the service.
Pipedream's system presents a safer alternativeto other robotic delivery methods, such as
(20:43):
drones, by minimizing the potential for harm ordisruption.
The company continues to expand its team,actively recruiting engineers to support its
ambitious goals in transforming deliverylogistics.
In a strategic move set to reshape the globalfood industry, Dusit Foods, a subsidiary of
(21:03):
Thailand's Dusit International, has partneredwith Green House Co., Ltd, a leading player in
Japan's food sector.
This collaboration aims to accelerate thegrowth of Epicure Catering Co., Ltd., which is
a top provider of food and beverage services inThailand's international school market.
The partnership is not only expected to expandEpicure's current operations but also broaden
(21:27):
its reach to include healthcare facilities,corporate clients, and airlines, both
domestically and internationally.
As part of the agreement, Green House, incollaboration with Sumitomo Corporation, will
establish a new Special Purpose Vehicle toacquire a twenty percent stake in Epicure
Catering.
Meanwhile, Dusit Foods will maintain a seventypercent share, with the remaining ten percent
(21:51):
held by existing Epicure shareholders.
With over seventy years of expertise in foodservices, Green House brings a wealth of
experience across sectors such as corporate,healthcare, and education, as well as in
restaurant and ready-to-eat food management.
Green House has previously collaborated withDusit International, notably providing
(22:12):
consultancy services for Dusit Thani Kyoto—thefirst Dusit Thani branded hotel in Japan—in
twenty twenty-three.
This successful partnership highlighted thepotential for extending their collaboration
beyond hospitality into the food sector.
"We are delighted to deepen our collaborationwith Green House and embark on this strategic
(22:33):
partnership that underscores our commitment toexpanding Dusit's food business on a global
scale," said Suphajee Suthumpun, Group ChiefExecutive Officer of Dusit International.
Epicure Catering, which holds over seventypercent market share in Thailand's
international school sector, is poised forsignificant growth with this new partnership.
(22:56):
Dusit Foods and Green House aim to leveragetheir combined expertise and resources to bring
Epicure's high-quality offerings to new marketsin education, healthcare, and airlines across
Thailand and Asia.
This collaboration provides a uniqueopportunity to explore sustainable cooperation
models that can contribute to the long-termdevelopment of the food industry.
(23:20):
Chiaki Tanuma, President and Chief ExecutiveOfficer of Green House, stated, "This strategic
partnership with Dusit Foods not only reaffirmsour dedication to delivering high-quality food
services across the education, healthcare, andcorporate sectors but also marks a significant
step in our global growth strategy." Heemphasized their commitment to setting new
(23:43):
standards in the food industry and pursuinginnovative solutions that create lasting value
for all stakeholders.
Manisa Mitpaibul, Managing Director of DusitFoods, explained that beyond driving the
expansion of Epicure Catering, the partnershipis designed to unlock new opportunities across
food and beverage production, distribution, andservices.
(24:09):
"Through knowledge sharing and the adoption ofbest practices, we aim to enhance employee
development, streamline operations, and fostersustainable growth across the food business
overall," she said.
Established in twenty eighteen with the visionto "Bring Asia to the World," Dusit Foods
invests strategically across Dusit's entirefood supply chain.
(24:31):
The division focuses on natural, organic, andhealthy products across four key areas:
manufacturing, distribution and retail, rawmaterials, and food outlets.
This partnership with Green House is atestament to Dusit Foods' commitment to global
expansion and innovation within the foodindustry.
That’s a wrap on today’s Food Delivery Daily.
(24:54):
If you enjoyed this episode, be sure tosubscribe or follow so you don’t miss out on
the latest in food delivery—industry news, keyupdates, and everything in between.
Join us every day for your daily delivery fix!
Welcome back to The Food Delivery Daily!
I’m AI Michelle, here with today’s top stories,industry updates, and the latest news shaping
the food delivery landscape.
This is your Food Delivery Daily, brought toyou by MagicPod from PodcastAI.
Want to create your own AI-generated podcast?
(00:20):
To learn more, click the link in the shownotes.
Now, let’s dive in.
First up...
DoorDash, the well-known delivery serviceprovider, has reported an impressive 18 percent
year-over-year increase in total orders duringthe third quarter, marking its first operating
profit since 2020.
(00:40):
This significant growth, highlighted in thecompany’s earnings report on October 30th, sets
a promising tone as they anticipate even higherdemand during the holiday season.
DoorDash expects this surge in use to driverobust fourth-quarter profits, according to
Reuters.
In an exciting development, DoorDash hasannounced a partnership with Lyft.
(01:02):
This collaboration aims to offer exclusiveperks to their shared customer base.
Members of DoorDash’s membership program willsoon enjoy discounts and upgrades on select
Lyft rides, alongside a complimentarythree-month trial to the program for Lyft
account holders.
This strategic partnership is not only a boonfor customers but also a savvy move for both
(01:23):
companies to enhance customer loyalty andengagement.
Tony Xu, the CEO of DoorDash, elaborated duringthe company’s earnings call on October 30th, on
the expanding role DoorDash is playing beyondrestaurant deliveries.
Since 2020, DoorDash has been diversifying byoffering grocery and convenience store product
(01:43):
deliveries.
Xu noted that as customers become accustomed toordering groceries through DoorDash, they tend
to purchase more items with each subsequentorder.
He remarked, "We’re seeing a much bigger marketthan we expected," which underscores the
potential for continued growth in this segment.
The partnership with Lyft is particularlynoteworthy given the overlapping customer base.
(02:07):
Xu pointed out that many of Lyft’s passengersare also DoorDash customers, making this a
mutually beneficial arrangement.
Audrey Liu, Lyft’s executive vice president ofrider experience, emphasized that this
partnership provides additional incentives forriders to choose Lyft, further strengthening
the relationship between the two companies.
(02:28):
As we look ahead, Lyft is set to announce itsown third-quarter 2024 financial results on
November 6th after the market close.
It'll be interesting to see how thispartnership with DoorDash impacts their
financial performance and customer satisfactionmetrics.
Stay tuned for more updates as thesedevelopments unfold.
In a significant move for the food deliveryindustry, Swiggy has successfully raised five
(02:53):
thousand eighty-five crore rupees from a groupof esteemed anchor investors.
This strategic allotment occurred just a daybefore Swiggy's initial public offering, aimed
at instilling confidence and setting the stagefor other potential investors.
Among the notable investors involved in thisanchor round are prominent mutual funds such as
(03:13):
ICICI Prudential, HDFC Life, and SBI Life,along with global giants like Capital,
Fidelity, Amundi, BlackRock, and Schroders.
The initial public offering is set to open toall investors on Wednesday and will close on
Friday.
It comes at a pivotal time when the domesticmarkets are experiencing volatility, partly due
(03:37):
to significant selling from foreign investors.
Additionally, the market is still reeling froma lackluster performance by Hyundai Motor
India's recent initial public offering, whichhas not met expectations.
Swiggy's upcoming initial public offering,valued at eleven thousand three hundred
twenty-seven crore rupees, is poised to beIndia's sixth largest in the domestic market
(04:01):
and the second largest this year followingHyundai.
The offering includes a fresh fundraise of fourthousand four hundred ninety-nine crore rupees,
which Swiggy plans to utilize for expanding itsdark store network, investing in technology and
cloud infrastructure, and bolstering its brandmarketing and business promotion efforts.
(04:22):
Additionally, Swiggy aims to support inorganicgrowth through these proceeds.
Notably, three-fourths of the issue is reservedfor institutional investors due to Swiggy not
meeting profitability criteria, leaving just aten percent allocation for retail investors,
significantly lower than the typicalthirty-five percent.
(04:42):
This allocation strategy highlights Swiggy'sfocus on attracting substantial institutional
backing to navigate its current financiallandscape.
The initial public offering also includes asecondary share sale worth six thousand eight
hundred twenty-eight crore rupees by teninvestors, including Tencent, Accel India, and
Apoletto Asia.
(05:04):
The selling shareholders have acquisition costsranging from eleven rupees to one hundred
sixty-five rupees per share, with the priceband for the issue set between three hundred
seventy-one and three hundred ninety rupees pershare.
At the upper end, Swiggy's valuation reacheseighty-seven thousand three hundred crore
rupees, positioning it competitively alongsideits rival Zomato, which is currently valued at
(05:28):
two point one trillion rupees.
Swiggy has shown remarkable improvement in itsfinancial performance, narrowing its losses to
two thousand three hundred fifty crore rupeesin the fiscal year twenty-four from four
thousand one hundred seventy-nine crore rupeesthe previous year.
Its revenue from operations also surged toeleven thousand two hundred forty-seven crore
(05:49):
rupees from eight thousand two hundredsixty-five crore rupees in the prior fiscal
year.
From an investment perspective, SBI Securitieshas recommended subscribing to Swiggy's initial
public offering for the long term, citing thefair pricing of the issue based on various
financial metrics.
As Swiggy prepares to enter the public market,all eyes will be on how it leverages this
(06:12):
capital to further its growth and maintain itscompetitive edge against industry players like
Zomato.
Amazon is making significant strides inexpanding its grocery delivery services,
marking a pivotal moment in its strategicgrowth.
The online retail giant has announced a newpartnership with FoodMaxx, a well-known grocery
(06:32):
chain in California, and has extended itsexisting partnerships with Save Mart and Lucky
Supermarkets.
This expansion is not limited to the UnitedStates; Amazon is also venturing into the
Mexican market through a collaboration with thestartup Jüsto, aiming to provide grocery
delivery services across the country.
(06:53):
In Mexico, Amazon's partnership with Jüsto isparticularly noteworthy.
Jüsto, founded in 2019, will manage thedelivery of fresh produce, meat, and fish
ordered through Amazon.com.
This marks one of the few instances whereAmazon is entrusting the entire customer
experience to a third-party provider,highlighting the trust and potential they see
(07:14):
in Jüsto's capabilities.
Ricardo Weder, CEO of Jüsto, expressedenthusiasm about the partnership, emphasizing
the vast growth opportunity given that onlythree percent of the Mexican population
currently purchases groceries online.
Back in California, Amazon is enhancing itsdelivery offerings by including same-day
(07:34):
grocery delivery from select FoodMaxx locationsin Central and Northern California, covering
cities such as Bakersfield, Hayward,Sacramento, San Jose, and Turlock.
Additionally, Amazon is expanding its servicewith Save Mart to include new locations in
Auburn, Bakersfield, and Chico, as well as fourmore Lucky Supermarkets in Foster City,
(07:57):
Hollister, Napa, and Oakley.
These expansions are part of The Save MartCompanies group, which is keen on providing
convenient shopping experiences for allcustomers.
Tamara Pattison, Chief Digital Officer at TheSave Mart Companies, highlighted the importance
of this expanded partnership with Amazon.
(08:17):
She stated that it allows FoodMaxx shoppers toaccess high-quality fresh and local products at
affordable prices, a necessity in today'seconomic climate.
This collaboration is seen as part of a broadercommitment to offering the most convenient
shopping options available.
Christian Seitel, Head of U.S.
Grocery Partnerships at Amazon, shared hisexcitement about the partnership with FoodMaxx.
(08:42):
He noted that by working with more than twentygrocery and specialty retailers globally,
Amazon can deliver a wide range of products tocustomers seeking value and convenience.
This aligns with Amazon's mission to offerexceptional price, selection, and convenience
to grocery shoppers.
For customers, the process is straightforward.
(09:04):
They can visit the online storefronts of eachgrocery chain on Amazon to place their orders.
Prime members enjoy additional benefits, suchas a grocery delivery subscription offering
unlimited deliveries on orders over thirty-fivedollars.
This subscription, available at nine dollarsand ninety-nine cents per month or ninety-nine
dollars and ninety-nine cents annually, extendsacross Amazon Fresh, Whole Foods Market, and
(09:29):
other local retailers.
This strategic expansion by Amazon showcasesits commitment to enhancing customer experience
and convenience in the grocery delivery market.
As Amazon continues to broaden its partnershipsand reach new territories, it remains a
formidable player in the evolving landscape ofonline grocery shopping.
(09:52):
HTF Market Intelligence Consulting PrivateLimited has recently released an in-depth study
on the Global Online Takeaway Food DeliveryMarket, projecting a remarkable growth
trajectory from one hundred fifty billionUnited States dollars in 2024 to two hundred
fifty billion United States dollars by 2032.
This represents a compound annual growth rateof 7.5 percent over the forecast period.
(10:17):
The study highlights significant marketdevelopments and key players contributing to
this growth, including Uber Eats, DoorDash,Grubhub, and several other industry leaders.
The report categorizes the market into varioussegments, such as Platform-to-Consumer,
Restaurant-to-Consumer, Aggregator, and CloudKitchen.
It also examines applications across Fast Food,Casual Dining, Full-Service Dining, and
(10:42):
Specialty Food sectors.
Geographically, the market analysis spans NorthAmerica, Latin America, Europe, Asia-Pacific,
and the Middle East and Africa, providing acomprehensive view of regional consumption,
revenue, market share, and growth rates.
One of the standout findings is the dominanceof the Asia-Pacific region in the online
(11:04):
takeaway food delivery market, attributed toits large population and increasing internet
penetration.
Meanwhile, the Middle East and Africa areidentified as the fastest-growing regions,
driven by technological advancements andchanging consumer preferences.
The study indicates that cloud kitchens andartificial intelligence optimization are
(11:27):
playing pivotal roles in enhancing deliveryservices, offering speed and convenience to
consumers.
However, it also notes that profitabilityremains a concern for many players in the
industry, despite the promising growth outlook.
From a strategic standpoint, the reportunderscores the importance of understanding
market conditions through comprehensiveanalyses such as the Five Forces and PESTLE
(11:51):
analyses.
These tools help assess the bargaining power ofbuyers and suppliers, the threat of new
entrants, and the potential for substitutes,among other factors.
In terms of market challenges, the reporthighlights the competitive landscape,
emphasizing the need for companies to adapt toevolving consumer demands and technological
(12:12):
shifts.
It also points to opportunities for growththrough strategic partnerships, product
launches, and geographical expansions.
Overall, the Global Online Takeaway FoodDelivery Market study offers valuable insights
for stakeholders looking to navigate thisdynamic sector.
(12:32):
As the market continues to expand, players mustremain agile and innovative to capitalize on
emerging trends and maintain their competitiveedge.
Instacart's stock, trading under the tickersymbol CART, has been on a remarkable upward
trajectory, rallying by seventy-nine percentsince its initial public offering in September.
(12:54):
Despite this impressive surge, analysts believethere could still be room for further growth.
The company's strong performance can beattributed to several factors, including its
strategic partnerships, expansion into newmarkets, and continuous innovation in delivery
services.
One of the key drivers of Instacart's stockperformance is its ability to form strategic
(13:17):
partnerships with major retailers.
These collaborations have allowed Instacart toexpand its reach and enhance its service
offerings, making it a preferred choice forgrocery delivery among consumers.
Additionally, the company's focus on technologyand innovation, such as integrating artificial
intelligence to optimize delivery routes andimprove customer experience, has set it apart
(13:41):
from competitors.
Instacart is also actively pursuing new marketopportunities, both domestically and
internationally.
By entering new regions and adapting itsbusiness model to local market conditions,
Instacart is positioning itself for sustainedgrowth.
This strategic expansion is expected to drivefurther revenue increases and strengthen its
(14:04):
market position.
Furthermore, Instacart's leadership team hasbeen instrumental in steering the company
towards success.
The recent appointment of Fidji Simo as ChiefExecutive Officer has brought fresh
perspectives and strategic direction, whichhave been well-received by investors and
industry analysts alike.
(14:25):
Simo's vision for Instacart includesdiversifying the company's revenue streams and
exploring new business opportunities beyondtraditional grocery delivery.
Despite the positive outlook, Instacart facesseveral challenges, including intense
competition from other delivery services andthe need to maintain profitability as it
scales.
(14:45):
However, the company's strategic initiativesand strong market presence provide a solid
foundation for overcoming these obstacles.
For investors, the current valuation ofInstacart presents both opportunities and
risks.
While the stock's recent rally suggests abullish sentiment, potential investors should
consider the company's long-term growthprospects and competitive dynamics within the
(15:08):
industry.
As Instacart continues to innovate and expand,it remains a compelling player in the rapidly
evolving food delivery market.
In a noteworthy industry win, WestJet and fooddelivery service Skip have announced a
strategic partnership that promises to enhancetravel experiences for Canadians.
(15:29):
This collaboration introduces exclusive rewardsand benefits, marking a significant milestone
in both companies’ efforts to blend conveniencewith travel perks.
Jeff Hagen, WestJet’s Vice President ofCommercial Development and Strategic
Partnerships, emphasized the value thispartnership brings to WestJet Rewards members.
(15:50):
He stated, “Seamlessly blending convenience andtravel rewards for Canadians, our newly forged
partnership with Skip brings value and choiceto WestJet Rewards members in their everyday
lives.” This initiative aims to extendWestJet’s rewards beyond traditional travel,
offering members exclusive benefits andexperiences even when they’re not flying.
(16:14):
The first phase of this partnership introducesa series of benefits for WestJet Rewards
members and Skip customers, effectivelyextending rewards from coast to coast.
Notably, WestJet Rewards members will now havethe option to choose a Skip gift card as a new
milestone award, further integrating everydayconvenience with travel rewards.
Skip's Vice President of Marketing, RachelMacAdam, expressed excitement over the
(16:38):
partnership, highlighting the added value itbrings to Skip's newly launched membership
program, Skip+.
She remarked, “We’re thrilled to partner withWestJet, giving Canadians access to exclusive
travel perks and experiences on Skip.” Thisprogram is designed to cater to customers’
interests, including their love of travel, byunlocking exclusive benefits.
(17:03):
Looking ahead, both companies plan to roll outadditional features and offers in 2025 and
beyond, continuing to innovate and enhance thecustomer experience.
This partnership not only represents astrategic market shift but also sets a
precedent for how travel and everydayconvenience can be integrated to provide
comprehensive lifestyle benefits.
(17:25):
Pipedream Labs has unveiled a cutting-edgeunderground robotic delivery system at a
prominent quick-service restaurant,revolutionizing the way fast food is delivered.
This innovative system promises to deliver foodorders from the kitchen to the customer in
under 15 seconds, effectively transforming thefast-food experience into an "instant food"
(17:46):
phenomenon.
Based in Austin, Texas, Pipedream Labs isdedicated to redefining logistics with its
high-speed delivery solutions.
These underground robots are designed tofacilitate swift deliveries for quick-service
restaurants and other facilities, marking asignificant advancement in the food delivery
industry.
Canon Reeves, the co-founder and chieftechnology officer of Pipedream Labs,
(18:10):
emphasized the inevitability of autonomousdelivery systems in the future.
He pointed out the current challenges faced bydelivery robots, particularly in navigating
sidewalks shared with pedestrians.
Pipedream has ingeniously shifted thistechnical challenge into a financial one,
focusing on the cost-effectiveness ofinstalling and operating these underground
(18:31):
pipes.
Reeves explained that the cost of installingthese smart pipes is well-calculated, ensuring
that each delivery point along the pipe networkis financially viable.
This strategic approach allows Pipedream tofinance the infrastructure effectively, aiming
to drastically reduce delivery times andstreamline restaurant operations.
(18:53):
Pipedream Labs has previously raised $13million in venture capital, which has fueled
its rapid growth and ability to test itsbelow-ground delivery system in various
locations, including Peachtree Corners,Georgia.
The focus on quick-service restaurants has beenstrategic, as these establishments represent
the simplest application for their technology.
(19:15):
The company envisions expanding its system toinclude grocery stores and city-wide
deployments, showcasing its versatility andpotential to revolutionize delivery logistics
across different sectors.
The recent deployment at the drive-thru marks asignificant milestone in Pipedream’s journey
towards creating a hyper-efficient deliverynetwork.
(19:35):
The construction of Pipedream’s undergroundsystem involves a straightforward process of
cutting concrete, installing pipes, and settingup above-ground kiosks for customer
interaction.
This efficient construction method enablesquick deployment, with recent projects
completed in just four and a half days, andplans to further reduce this timeline.
(19:57):
Pipedream's innovative approach extends to itsabove-ground kiosks, or "portals," which are
engineered to be user-friendly and efficient.
These portals are a crucial component of thesystem, allowing customers to seamlessly pick
up their orders without the need for extensivetraining or instruction.
Looking ahead, Pipedream Labs aims to integrateits underground system with other delivery
(20:21):
technologies, envisioning a future where itssystem can collaborate with other autonomous
delivery solutions.
This vision includes the possibility ofsidewalk robots completing the final leg of
delivery, enhancing the overall efficiency andreach of the service.
Pipedream's system presents a safer alternativeto other robotic delivery methods, such as
(20:43):
drones, by minimizing the potential for harm ordisruption.
The company continues to expand its team,actively recruiting engineers to support its
ambitious goals in transforming deliverylogistics.
In a strategic move set to reshape the globalfood industry, Dusit Foods, a subsidiary of
(21:03):
Thailand's Dusit International, has partneredwith Green House Co., Ltd, a leading player in
Japan's food sector.
This collaboration aims to accelerate thegrowth of Epicure Catering Co., Ltd., which is
a top provider of food and beverage services inThailand's international school market.
The partnership is not only expected to expandEpicure's current operations but also broaden
(21:27):
its reach to include healthcare facilities,corporate clients, and airlines, both
domestically and internationally.
As part of the agreement, Green House, incollaboration with Sumitomo Corporation, will
establish a new Special Purpose Vehicle toacquire a twenty percent stake in Epicure
Catering.
Meanwhile, Dusit Foods will maintain a seventypercent share, with the remaining ten percent
(21:51):
held by existing Epicure shareholders.
With over seventy years of expertise in foodservices, Green House brings a wealth of
experience across sectors such as corporate,healthcare, and education, as well as in
restaurant and ready-to-eat food management.
Green House has previously collaborated withDusit International, notably providing
(22:12):
consultancy services for Dusit Thani Kyoto—thefirst Dusit Thani branded hotel in Japan—in
twenty twenty-three.
This successful partnership highlighted thepotential for extending their collaboration
beyond hospitality into the food sector.
"We are delighted to deepen our collaborationwith Green House and embark on this strategic
(22:33):
partnership that underscores our commitment toexpanding Dusit's food business on a global
scale," said Suphajee Suthumpun, Group ChiefExecutive Officer of Dusit International.
Epicure Catering, which holds over seventypercent market share in Thailand's
international school sector, is poised forsignificant growth with this new partnership.
(22:56):
Dusit Foods and Green House aim to leveragetheir combined expertise and resources to bring
Epicure's high-quality offerings to new marketsin education, healthcare, and airlines across
Thailand and Asia.
This collaboration provides a uniqueopportunity to explore sustainable cooperation
models that can contribute to the long-termdevelopment of the food industry.
(23:20):
Chiaki Tanuma, President and Chief ExecutiveOfficer of Green House, stated, "This strategic
partnership with Dusit Foods not only reaffirmsour dedication to delivering high-quality food
services across the education, healthcare, andcorporate sectors but also marks a significant
step in our global growth strategy." Heemphasized their commitment to setting new
(23:43):
standards in the food industry and pursuinginnovative solutions that create lasting value
for all stakeholders.
Manisa Mitpaibul, Managing Director of DusitFoods, explained that beyond driving the
expansion of Epicure Catering, the partnershipis designed to unlock new opportunities across
food and beverage production, distribution, andservices.
(24:09):
"Through knowledge sharing and the adoption ofbest practices, we aim to enhance employee
development, streamline operations, and fostersustainable growth across the food business
overall," she said.
Established in twenty eighteen with the visionto "Bring Asia to the World," Dusit Foods
invests strategically across Dusit's entirefood supply chain.
(24:31):
The division focuses on natural, organic, andhealthy products across four key areas:
manufacturing, distribution and retail, rawmaterials, and food outlets.
This partnership with Green House is atestament to Dusit Foods' commitment to global
expansion and innovation within the foodindustry.
That’s a wrap on today’s Food Delivery Daily.
(24:54):
If you enjoyed this episode, be sure tosubscribe or follow so you don’t miss out on
the latest in food delivery—industry news, keyupdates, and everything in between.
Join us every day for your daily delivery fix!
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
My Favorite Murder with Karen Kilgariff and Georgia Hardstark
My Favorite Murder is a true crime comedy podcast hosted by Karen Kilgariff and Georgia Hardstark. Each week, Karen and Georgia share compelling true crimes and hometown stories from friends and listeners. Since MFM launched in January of 2016, Karen and Georgia have shared their lifelong interest in true crime and have covered stories of infamous serial killers like the Night Stalker, mysterious cold cases, captivating cults, incredible survivor stories and important events from history like the Tulsa race massacre of 1921. My Favorite Murder is part of the Exactly Right podcast network that provides a platform for bold, creative voices to bring to life provocative, entertaining and relatable stories for audiences everywhere. The Exactly Right roster of podcasts covers a variety of topics including historic true crime, comedic interviews and news, science, pop culture and more. Podcasts on the network include Buried Bones with Kate Winkler Dawson and Paul Holes, That's Messed Up: An SVU Podcast, This Podcast Will Kill You, Bananas and more.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.