Everything, Now!

It’s interesting to see how upstarts like Fridge No More are differentiating around the treatment of couriers, specifying that they do not employ gig workers. This could represent a move toward a more civic-minded courier business model that will improve the perception of on-demand delivery.

Based on this high level analysis, it’s not surprising to see that alcohol, convenience, and pet are emerging as battlegrounds for on-demand delivery of late. Uber acquired alcohol delivery startup Drizly last year, and GoPuff acquired Liquor Barn in June. Doordash has recently expanded into Pet and Floral.

-Gifting opportunity will be a source of differentiation this holiday

-Fashion will test on demand delivery with a focus on high-touch experiences

Gorillas is betting that customers care about speed above all else and building a business model to enable this.

-On-demand delivery companies will invest in and incubate DTC brands

-I expect on-demand delivery models to offer more gifting experiences in the app—for example, adding gift messages for the recipient and allowing the recipient to select the gift themselves within a gift allowance (similar to the fun gift selection experience that startup Goody offers today).

In the past, ordering via a food delivery app was somewhat of a guilty pleasure. There was the feeling that we Doordash food when we’re too lazy to cook ourselves. However, the pandemic may have changed the perception of these services. Instead of connoting laziness, ordering groceries and meals in came to mean caring for one’s neighbors and commun... See more

But what about categories beyond food? Do customers care about speed when it comes to clothes, convenience items, homeware, or beauty? And how will a courier entrant be positioned to “win” in this new model?

Doordash and Uber both emerged as leaders delivering from individual stores to individual customers. However, both have been expanding into owned microwarehouses as this model could be more profitable in certain categories, like convenience, grocery, and other consumer categories.