Ultrafast Delivery: The $28B Market to Build the On-Demand Bodega

Most grocery stores have now begun to offer some form of their own in-house delivery, some of which are profitable. These profitable models generally have higher minimum order requirements, markups on items, non-flexible delivery windows (often multiple deliveries are pooled into one driver trip to save costs), and an unclear view into what product... See more

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.

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

As Americans dine-out less and order-in more, “virtual kitchens” are emerging in dense metropolitan areas to house dozens of delivery-only concepts in converted warehouses. The biggest player in the US is CloudKitchens, backed with $150m from Uber founder and ex-CEO Travis Kalanick. Watch as we provide an inside look into these mysterious kitchens ... See more