GRUB and AMZN Prime
GRUB app downloads are surging
Amazon Prime members in the United States can sign up for a free, one-year Grubhub+ membership and access unlimited $0 delivery fees from hundreds of thousands of restaurants on Grubhub throughout the year. In addition to $0 delivery on eligible orders, Grubhub+ members get access to member-only perks and rewards. The agreement is expected to expand membership to Grubhub+ while having a neutral impact on Grubhub's 2022 earnings and cash flow and be earnings and cash flow accretive for Grubhub from 2023 onwards.
Based on the current surge in app downloads, the initial reaction looks very positive.
Open Table Trends
We went out to dinner in Boston last night, and the restaurant was packed, showing no signs of a slowdown in dining out! That said, the data from Open Table continue to show slowing trends.
Rapid Delivery Slowdown
DASH is a SHORT
GoPuff is said to be cutting 10% of its global headcount and shuttering dozens of warehouses.
According to LA Times, the cuts will impact about 1,500 staff members, including corporate and warehouse workers in the U.S. GoPuff is expected to shut down 76 warehouses, or about 12% of its network. The latest update comes after a report in late March that the grocery delivery firm was close to finalizing a $1B funding round and cutting hundreds of jobs as a potential IPO appeared to be put off. GoPuff competes with Instacart (ICART) as well as DoorDash (DASH) and Just Eat Takeaway's (JTKWY) Grubhub unit.
