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The Race for On-Demand Groceries

The Race for On-Demand Groceries
July 8, 2021

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As we reported in our Q1 2021 report, the daily essentials delivery service, Gopuff, was the New Year's top growth company. Consumer demand due to the pandemic undoubtedly influenced the company’s impressive $1.2BN Round G in March. But while the world reopens and we are ostensibly able to return to the supermarket or bodega, consumer behavior (and investor enthusiasm) has continued to favor rapid delivery.

The opportunity to meet new consumer behavior has many new startups clamoring to get into the game. The founder of one European company, Getir, says that “people have a right to laziness.” His investors believe he’s right, giving the company $550MM at a $7.5BN valuation in June. Speculators suggest that consolidation amongst startups is the only path forward. The UK company Dija is said to be considering a sale to its rival, Gopuff, which has already made acquisitions of the companies Liquor Barn, RiseOS, Fancy Delivery, and BevMo.

Chicago-based Foxtrot Market has 9 retail locations for grocery, booze & gift deliveries in minutes. They also specialize in software to power these transactions. Similarly, the now-public company out of the UK, Ocado, began as an online grocery retailer but pivoted to software for other grocers to conduct online sales and rapid deliveries, such as massive U.S. grocer, Kroger’s.

Ocado is among a growing sea of voices saying the VC capital flooding the industry is incongruous to the size of the opportunity. Rather than replacing the supermarket treks totaling hundreds of consumer dollars, these startups are competing with convenience stores for a much lower shopping cart total. For consumers choosing between convenience and a 30-40% markup, only time will tell how often we choose to exercise our right to laziness.

Robots on the quad

Grubhub enlisting Russian robots for campus munchies.
[The Verge]

Vaccines vs. Delta variant
International research shows vaccines are about 80+% effective.
Since last week, PrivCo has added:

2099 Companies | 184 Funding Activities | 123 M&A Deals

Funding & Deal Highlights:
 

Nabis raises $23MM from Artemis Growth Partners 

Cannabis Software & Internet Services • Round B • Oakland, CA
 

INSHUR raises $25.95MM from Jerusalem Venture Partners

Insurtech Software & Internet Services • Round B • New York, NY
 

The Kantar Group acquires Numerator for $1.5BN

Advertising Software & Internet Services • Acquisition • Chicago, IL


High Tide Inc. acquires DHC Supply for $10MM

Specialty Retail • Acquisition • Signal Hill, CA
 

Siris Capital Group acquires American Stock Transfer & Trust for $630MM

Professional Services • Acquisition • Brooklyn, NY
 

Clayton, Dubilier & Rice acquires Fort Dearborn & Multi-Color Corporation 

Consumer Products Distributors • Acquisition • Batavia, OH
 

Zebra Technologies acquires Fetch Robotics for $290MM

Commercial Products & Office Supplies • Acquisition  San Jose, CA
 

Lionbridge acquires Rocket Sound 

Specialized Consumer Services • Acquisition • North Hollywood, CA
 

Kennedy Lewis acquires EchoNous for $60MM

Health Care Equipment • Acquisition • Redmond, WA
 

Absolute Software acquires NetMotion Software 

Software & Internet Services • Acquisition • Seattle, WA
 

Yadav Enterprises acquires Taco Cabana for $85MM

Restaurant • Acquisition • San Antonio, TX
 

Barracuda Networks acquires SKOUT Cybersecurity 

Security Software & Internet Services • Acquisition • Melville, NY

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