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Below is a brief excerpt from a complimentary research note written by our Restaurants analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email sales@hedgeye.com |
In the last week, Uber (covered by our Industrials analyst Jay Van Sciver) has agreed to purchase Postmates for $2.65B, and Instacart raised $100M at a $13.8B valuation. A month ago, Instacart raised $225M at a $13.7B valuation.
Less than a month ago, DoorDash raised $400M at a $16B valuation, up from its previous valuation of $13B. Uber has been planning to launch its Cornershop grocery delivery business later in July in select markets. Grocery delivery has grown significantly during the pandemic, limited by the capacity of the retailers and delivery providers.
In April, Instacart said it reached profitability for the first time. In May, Instacart said order volumes had increased more than 500% YOY. The company claims to have the highest market share in grocery delivery.
Instacart has been building new services and features and expand its ad service, which allows brands to promote their merchandise in the platform.
There have been more overlap with restaurant and grocery delivery companies as they expand their offerings.
The sector will likely prove to be more competitive, and further consolidation/partnerships should be expected.
