Mercatus Technologies Inc’s Post

Instacart, the grocery delivery company, has discovered that a significant portion of its users are small and medium-sized businesses, including restaurants. These businesses have turned to Instacart as a convenient solution for sudden out-of-stocks and supply chain backups. Instacart Business, a new division within the app, caters specifically to these businesses, offering features like tax exemptions, invoicing, and product recommendations for bulk items. While Instacart aims to complement the existing restaurant supply chain, it has become a valuable resource for restaurants seeking specialty items or urgently needed supplies. With over 1,200 retailers on the platform, restaurants can conveniently shop for a wide range of products, from fresh produce to cleaning supplies. Despite delivery fees, many restaurants find Instacart to be a time-saving and efficient solution. For global CG industry trends, subscribe to our weekly email newsletter at https://lnkd.in/dSxJjA8r

Uber Eats is now powering restaurant delivery on the Instacart app! The strategic partnership between Instacart and Uber is a significant move in the food delivery space. Here are a few thoughts on the benefits that the partnership bring to both companies: Benefits to Instacart: 1. Expanded service offering Instacart now offers a broader range of services, including restaurant delivery, which enhances the convenience for users and increases the overall value proposition of the platform as a one stop shop 2. New revenue stream Instacart will earn a fee from Uber for every Uber Eats order placed through its platform, providing a new revenue source and driving up overall revenue from consumers 3. User retention By integrating Uber Eats into its platform, Instacart gains a competitive edge over other grocery delivery services, which may not offer such a broad range of services Benefits to Uber Eats: 1. User acquisition at subsidized CAC Uber Eats gains access to Instacart large customer base overnight, particularly in suburban areas where Instacart has a strong presence, expanding its top of the funnel reach and potentially driving more orders to its restaurant partners 2. Saved infrastructure costs The partnership allows Uber Eats to leverage Instacart's technology and infrastructure, enhancing the overall user experience and potentially improving operational efficiency at a decreased infrastructure cost 3. Potential increased courier acquisition & retention With the potential for increased order volume, the partnership could create more earnings opportunities for existing couriers on Uber Eats' platform as well as drive courier sign ups on the platform Instacart (Maplebear Inc.) stock shot up by 3% & Uber's stock was up by 0.1% on the 7th after the news of the partnership was announced What other benefits to you see to both companies and the marketplace as a whole? #uber #instacart #CART #UBER #productmanagement

Ordered from DoorDash or another third party delivery app lately and noticed how quickly the "charges" add up? Restaurants continue to pass along more of the costs associated with leveraging various technology order and delivery platforms. The fee layering is starting to get ridiculous between tips, service fees, extra distance, surcharges, etc. And restaurants often build in higher menu pricing for delivery vs. pickup. If you think maybe I'll bypass the DoorDash and order from the restaurant's first party website? That site is most likely hosted by a third party platform and also takes a cut, passing along various surcharges. Want to do it the old fashioned way? SpotOn EMV's device at the restaurant gives me four post-payment acceptance tip options - 15%, 20%, 25%, and "other"...for a quick serve restaurant with counter service. So where do I see change coming? Olo has been the dominant force enabling Enterprise (generally +100 branded chain locations or more) restaurants to orchestrate multiple third party food ordering and delivery platforms with limited competition to date. Similarly Punchh has owned the dominant market share in loyalty, but its platform is dated and many restaurant corporates are questioning the cost of a standalone app and loyalty engagement. Restaurants are eager to leverage data for AI enabled loyalty/offers, but they currently don't own all the data, much of it walled off by Olo and other digital ordering technology. Expect more Point of Sale platforms to build in Olo or Punchh like capabilities to enable data first strategies for corporate owners to drive enhanced yield on loyalty programs. A potential recession and strong USD may ease ongoing labor and food costs, but restaurants are merely trying to pass as much of their costs on to the consumer as possible. Digital ordering will likely remain a significant portion of future restaurant business (40-60%), but consumers are likely to push back and find lower cost alternatives as recessionary pressures grow.

Instacart and Uber Eats are teaming up to bring restaurant delivery to the grocery delivery platform in the coming weeks across the U.S. The move pairs two of the largest food and goods delivery platforms as they each look to charge growth and bulk up profits in a competitive field. Instacart will roll out a new “Restaurants” tab within its app that allows users to choose from nearby restaurants, browse menus, place orders, and track deliveries, all powered by Uber Eats and Uber couriers. “Through this partnership, Instacart customers now have access to both the best online grocery selection in the U.S. and restaurant delivery, making it even easier for them to conveniently tackle all their food needs from a single app,” Instacart CEO Fidji Simo said in a press release on Tuesday. “For Uber, powering restaurant delivery in the Instacart app is another way to help drive more orders to Uber Eats restaurant partners,” the companies said in a joint release. “This new channel also enables Uber to extend its leading restaurant selection to millions of customers across the U.S., including families in suburban markets that use Instacart.” #instacart #ubereats #fooddelivery #partnership #tech https://lnkd.in/gj83_uQa

Is the current food delivery model broken? Food-delivery is not going anywhere, but that doesn't mean that the existing model doesn't need to evolve, right? Third-party delivery marketplaces like DoorDash, UberEats, and Menulog continue to face criticism around fees, lack of customer data for partners, and the overall customer experience... Is this model truly sustainable? Isn't there a better model? What are the pain-points? The biggest issues plaguing food-delivery marketplaces are: 1) High commission rates to restaurants: is 35%-40% sustainable when restaurants operate on such thin margins? Yes, you can argue that this revenue is incremental, but is that truly the case when delivery is growing year-over-year, and now accounting for over 50% of a restaurants revenue? Consumers are still eating just 3x per day...right? 2) A lack of customer data: the best operators I know run their restaurant like a true business. They know their customers, and they pride themselves on operating with the utmost hospitality. Third-party marketplaces don't provide operators any data on who their customers are, as a result, these aren't the restaurant's customers, they are the marketplace's. READ THAT AGAIN & THINK ABOUT WHAT THAT MEANS TO A BUSINESS! Fast food-delivery is evolving to solve these issues and are working to deal with all of the above: - Customer-data on 100% of marketplace orders - Reduced delivery-fees close to 50% - Automated conversion of 30-40% of third-party marketplace customers to native channels where venues can fully own the customer experience... A sustainable and profitable delivery solution is not too far off...to be honest it's actually already here and expanding rapidly across Australia...it's time for savvy operators to #getSMART and consider local, community focused & scalable solutions provided by services like Bite Local Australia Pty Ltd who offer something the big boys aren't even thinking or worried about - fast, efficient, personalized and profitable fast food delivery - on-time, every-time!

Deliveroo's recipe for success: 72% #revenuegrowth in 5 years! 🇬🇧 🚚 This UK-based food delivery app has been on a tear, thanks to smart strategies like market expansion, service diversification, and tech innovation. 📈 They've partnered with restaurants in new countries, offered grocery delivery and subscriptions, and invested in features that make the user experience top-notch. Explore its market expansion, strategic partnerships, and continuous innovation: https://lnkd.in/dqDxE-Kn #fooddelivery #Deliveroo #growthhacking #fooddelivery #Deliveroo #growthhacking

I love this! From a collaborative standpoint this is very exciting. The partnership between Instacart and Uber Eats is an example of a strategic alliance. A strategic alliance is a business partnership where two or more companies collaborate to pursue shared objectives while remaining independent organizations. In this case, Instacart and Uber Eats are leveraging each other's strengths and capabilities to create a new offering that benefits both companies. Instacart provides the platform and technology for customers to order from local restaurants, while Uber Eats contributes its extensive delivery network and logistics expertise. For solopreneurs, creating a similar concept can be achieved through strategic partnerships or joint ventures with complementary businesses or service providers. Here are some examples of how solopreneurs can establish these types of collaborations: 1. Service bundling: A solopreneur offering social media management services could partner with a website designer or SEO consultant to bundle their services together as a comprehensive digital marketing package. 2. Cross-promotion: A solopreneur running an online coaching program could collaborate with a complementary business selling physical products (e.g., workout equipment, wellness supplements) and cross-promote each other's offerings to their respective audiences. 3. Collaborative products or services: A solopreneur who creates digital courses could partner with a virtual assistant or freelance writer to offer a bundled package that includes the course material and additional support services. 4. Shared resources: Solopreneurs in the same industry or location could form a partnership to share resources such as office space, equipment, or even staff members, reducing overhead costs for each individual business. 5. Referral partnerships: Solopreneurs offering different but related services could establish a referral partnership, where they refer clients to each other and receive a commission or reciprocal referrals in return. The key to successful collaborations for solopreneurs is to identify businesses or service providers that complement their offerings without directly competing. By leveraging each other's strengths, they can create more value for their customers and expand their reach while remaining independent entrepreneurs.

Instacart wants a piece of the restaurant supply chain Running a restaurant comes with its challenges, especially when faced with unexpected out-of-stock situations. But in recent years, some operators have found a more convenient solution for sudden out-of-stocks: Instacart. Recently, Instacart delved into its customer data and discovered that a significant number of users were small and medium-sized businesses, including restaurants. These businesses turned out to be excellent customers, showing better retention, placing larger orders, and exploring a wide range of retailers compared to the average consumer. Andrew Nodes, Instacart’s VP of Business and Supply chain, revealed that the pent-up pandemic demand and supply chain backups have made it difficult for busy restaurants to stay stocked. This prompted them to experiment with Instacart, finding it convenient to avoid going to stores themselves. Recognizing the potential of this growing segment, Instacart introduced "Instacart Business," a new division that offers restaurants and other small to medium-sized businesses a separate experience within the app. The new accounts cater to businesses with features like tax exemptions, invoicing tools, and personalized product recommendations, including bulk items. Since its launch earlier this year, Instacart Business has been processing millions of orders each quarter, and the company is confident in the growth opportunities it presents. Instacart's VP, Andrew Nodes, said, "We’re making a big bet on this space, and we think it’s gonna lead to medium- and long-term growth opportunities for Instacart overall." Restaurants are leveraging the app to purchase a wide array of items, from fresh produce to cleaning supplies and canned goods, sourced from the 1,200 retailers on Instacart, including wholesalers, grocers, pharmacies, and convenience stores. While Instacart offers convenience, it's essential to be mindful of delivery fees that start at $3.99 and may vary based on location and order size. Nevertheless, the time saved and operational efficiency gained can be invaluable for restaurants. For example, Connie's Chicken and Waffles owners estimated saving 2,000 hours since using Instacart for their supplies, allowing them to focus on what matters most: their customers and their business. Subscribe Our Friday Takeaway Newsletter To Get More Industry Insights! Check Linktree In Bio 🍕 #foodtech #fooddelivery #grocerydelivery #lastmile #fridaytakeaway

"Recently, Instacart ...discovered that a significant number of users were small and medium-sized businesses, including restaurants. These businesses turned out to be excellent customers, showing better retention, placing larger orders, and exploring a wide range of retailers compared to the average consumer. Recognizing the potential of this growing segment, Instacart introduced "Instacart Business," a new division that offers restaurants and other small to medium-sized businesses a separate experience within the app. The new accounts cater to businesses with features like tax exemptions, invoicing tools, and personalized product recommendations, including bulk items." #restaurants #fooddelivery #deliveryapps

Here’s another example of DoorDash using Shared Mail to reach new consumers. No restaurants were in my package this week. Unfortunate. The front cover of the Save package is mailed to a zone of 100,000+ households at a low cost per thousand.  The insert is a higher cost per thousand but targeted to specific neighborhoods or households.  Notice the different redemption codes. If you are a restaurant or retailer who is not following DoorDash’s example of testing and learning, feel free to reach out for guidance.  #directmail #sharedmail #cpm #restaurantmarketing #customerdata