• The Financial Times reports that Postmates, which serves as the delivery arm for a number of retailers around the country, has just raised $300 million in venture capital, in a funding round that values the company as being worth $1.2 billion.
The story notes that Postmates reported $1 billion in gross volume last year, that it says it is profitable “on a contribution margin basis” in 90 percent of the markets it serves, and that it is aims to go public sometime next year.
FT writes that “the US food delivery market is experiencing a flurry of competition and investment as companies seek to capture the loyalty of a growing group of consumers who are opting to eat at home instead of going out to restaurants. Postmates, Uber Eats and DoorDash are battling it out with Amazon, GrubHub and Square’s Caviar to become the platform of choice in cities across the country … The recent uptick in investment in on-demand food delivery follows a difficult few years in which companies struggled to close funding rounds amid doubts over whether they could ever become profitable.”
DoorDash, for example, is valued at $4 billion, and Uber Eats is expected to have $6 billion in revenue this year.
• Ahold Delhaize-owned Peapod has unveiled a relationship with Meats by Linz, a Midwest meat purveyor that provides meat to a number of high-end steak houses. The deal will give online Peapod customers in Chicago access to a Virtual Butcher Shop that will give them access not just to high-quality products from Linz, but also to advice and information from its experts.
Spencer Baird, senior vice president of merchandising for Peapod, said in a statement that “as another Chicago-based company we saw the immense potential not only to distribute their products, but also collaborate in a full partnership that gives the Peapod customer a truly unique experience delivered right to their door.”
Peapod said that “to help shoppers find exactly what they're looking for, Meats by Linz will offer an array of cuts and aging styles to Peapod customers. Peapod will also introduce a ‘Gourmet Butcher Shop’ launching in time for the holiday season that will allow shoppers to custom order for their holiday meals, specifying specific cuts and sizes to meet the needs of their holiday celebrations.”
The story notes that Postmates reported $1 billion in gross volume last year, that it says it is profitable “on a contribution margin basis” in 90 percent of the markets it serves, and that it is aims to go public sometime next year.
FT writes that “the US food delivery market is experiencing a flurry of competition and investment as companies seek to capture the loyalty of a growing group of consumers who are opting to eat at home instead of going out to restaurants. Postmates, Uber Eats and DoorDash are battling it out with Amazon, GrubHub and Square’s Caviar to become the platform of choice in cities across the country … The recent uptick in investment in on-demand food delivery follows a difficult few years in which companies struggled to close funding rounds amid doubts over whether they could ever become profitable.”
DoorDash, for example, is valued at $4 billion, and Uber Eats is expected to have $6 billion in revenue this year.
• Ahold Delhaize-owned Peapod has unveiled a relationship with Meats by Linz, a Midwest meat purveyor that provides meat to a number of high-end steak houses. The deal will give online Peapod customers in Chicago access to a Virtual Butcher Shop that will give them access not just to high-quality products from Linz, but also to advice and information from its experts.
Spencer Baird, senior vice president of merchandising for Peapod, said in a statement that “as another Chicago-based company we saw the immense potential not only to distribute their products, but also collaborate in a full partnership that gives the Peapod customer a truly unique experience delivered right to their door.”
Peapod said that “to help shoppers find exactly what they're looking for, Meats by Linz will offer an array of cuts and aging styles to Peapod customers. Peapod will also introduce a ‘Gourmet Butcher Shop’ launching in time for the holiday season that will allow shoppers to custom order for their holiday meals, specifying specific cuts and sizes to meet the needs of their holiday celebrations.”
- KC's View:
