Point Pickup acquires e-commerce platform GrocerKey for $42M to allow for same-day delivery

Point Pickup Technologies, a last-mile delivery service, has acquired white label e-commerce platform GrocerKey for $42 million, according to the company. With the acquisition, Point Pickup now allows retailers to offer same-day delivery, from purchase to fulfillment to delivery, under their own brand name, rather than under third parties like Instacart.

Instacart made a killing delivering groceries and goods for retailers during the coronavirus pandemic, with a generated revenue of $1.5 billion in 2020 and $35 billion worth of sales. The company has an estimated 9.6 million active users and over 500,000 “shoppers” who pick up and deliver goods. 

New entrants to the same-day delivery space are cropping up, which aligns with the expected growth of the industry to $20.36 billion by 2027, according to Allied Market Research. But companies like Amazon and Instacart that perform this service and host a delivery marketplace get far more than sales revenues – they also get all the customer data. 

Tom Fiorita, founder and CEO of Point Pickup, says retailers should have a right to own that data themselves. The acquisition of GrocerKey, which brings on board the company’s front-end consumer-facing sales engine and predictive analytics, puts the data and brand recognition back in the retailer’s hands. 

“If you are a customer of Instacart, you pay them a subscription, they own your buying habits, your credit cards, your data,” Fiorita told TechCrunch. “Instacart was a big thing during COVID because no one had delivery. So now retailers woke up and said, ‘Oh my god, I can’t just have an Instacart-like marketplace be selling my goods. I don’t know who my customers are, I don’t have their credit cards or data.’ And you know data runs the world now.”

Another recent, if not smaller, entrant to the space is Canadian startup Tyltgo, which operates under a similar model to what Point Pickup is now offering via GrocerKey’s technology. In both cases, the buyer goes directly onto the merchant’s platform and places the order through them, so it feels like they’re interacting with the brand they purchased from. And on Tuesday, Walmart also announced a new white-label delivery service that would allow other merchants to tap into its own delivery platform to get orders to their customers.

Fiorita founded Point Pickup in 2015 as a reaction to Amazon’s increased omnipotence with the noble, if not naive, mission to “save local America.” Walmart and Kroger, two of the largest grocery retailers in the U.S., are Point Pickup’s top customers, alongside other nationwide retailers like Albertsons, Giant Eagle and more. But Fiorita believes the service his company is offering will be even more impactful when it starts to work its way down to the mid-sized and small- to medium-sized businesses. 

“We built this not only to survive against Amazon or Instacart, but because these small businesses need this for their survival,” Fiorita said. “These companies will no longer survive if they continue to allow other companies to sell their merchandise and to own their customer, including the data, the advertising, the CPG dollars and everything.”

Point Pickup offers deliveries of everything from grocery to general merchandise, pharmacy and oversized delivery. It has a network of 350,000 gig economy drivers across 25,000 ZIP codes in all 50 states. 

Since the company’s network of drivers, who often pick and pack the products for the customer as well as deliver the goods, comprises all gig workers with their own vehicles, Point Pickup doesn’t have a clear picture of the percentage of its fleet that’s electric or hybrid. Fiorita speculates it’s probably on par with nationwide rates, if not higher. A recent Pew Research report found that 7% of Americans say they own an EV or hybrid. 

Fiorita said that the type of car drivers own is taken into account during recruitment and that the company is looking for ways to incentivize drivers to buy less polluting vehicles. He also said Point Pickup is a vehicle-agnostic platform, meaning it’s piloting other delivery vessels like drones and autonomous robots.

To compete with the big dogs in the space like Amazon and Walmart, both of which are either testing or already have in place electric delivery vans, Point Pickup will have to also make efforts to beef up its strategy in the carbon emissions space.

#albertsons, #amazon, #delivery, #ecommerce, #instacart, #online-shopping, #point-pickup, #retailers, #same-day-delivery, #transportation, #tyltgo, #united-states, #walmart

Google promises better 3D maps

Google is announcing a handful of major updates to Google Maps today that range from bringing its Live View AR directions indoors to adding weather data to its maps, but the most tantalizing news — which in typical Google fashion doesn’t have an ETA just yet — is that Google plans to bring a vastly improved 3D layer to Google maps.

Using photogrammetry, the same technology that also allows Microsoft’s Flight Simulator to render large swaths of the world in detail, Google is also building a model of the world for its Maps service.

“We’re going to continue to improve that technology that helps us fuse together the billions of aerials, StreetView and satellite images that we have to really help us move from that flat 2D map to a more accurate 3D model than we’ve ever had. And be able to do that more quickly. And to bring more detail to it than we’ve ever been able to do before,” Dane Glasgow, Google’s VP for Geo Product Experience, said in a press event ahead of today’s announcement. He noted that this 3D layer will allow the company to visualize all its data in new and interesting ways.

Image Credits: Google

How exactly this will play out in reality remains to be seen, but Glasgow showed off a new 3D route preview, for example, with all of the typically mapping data overlayed on top of the 3D map.

Glasgow also noted that this technology will allow Google to parse out small features like stoplights and building addresses, which in turn will result in better directions.

“We also think that the 3D imagery will allow us to visualize a lot of new information and data overlaid on top, you know, everything from helpful information like traffic or accidents, transit delays, crowdedness — there’s lots of potential here to bring new information,” he explained.

Image Credits: Google

As for the more immediate future, Google announced a handful of new features today that are all going to roll out in the coming months. Indoor Live View is the flashiest of these. Google’s existing AR Live View walking directions currently only work outdoors, but thanks to some advances in its technology to recognize where exactly you are (even without a good GPS signal), the company is now able to bring this indoors. This feature is already live in some malls in the U.S. in Chicago, Long Island, Los Angeles, Newark, San Francisco, San Jose, and Seattle, but in the coming months, it’ll come to select airports, malls and transit stations in Tokyo and Zurich as well (just in time for vaccines to arrive and travel to — maybe — rebound). Because Google is able to locate you by comparing the images around you to its database, it can also tell what floor you are on and hence guide you to your gate at the Zurich airport, for example (though in my experience, there are few places with better signage than airports…).

Also new are layers for weather data (but not weather radar) and air quality in Google Maps. The weather layer will be available globally on Android and iOS in the coming months, with the air quality layer only launching for Australia, India and the U.S. at first.

Image Credits: Google

Talking about air quality, Google Maps will also get a new eco-friendly routing option that lets you pick the driving route that produces the least CO2 (coming to Android and iOS later this year), and it will finally feature support for low emission zones, a feature of many a European City. Low emission zones on Google Maps will launch in June in Germany, France, Spain and the UK on Android and iOS. More countries will follow later.

And to bring this all together, Google will update its directions interface to show you all of the possible modes of transportations and routing options, prioritized based on your own preferences, as well as based on what’s popular in the city you are in (think he subway in NYC or bike-sharing in Portland).

Also new are more integrated options for curbside grocery pickups in partnership with Instacart and Albertsons, if that’s your thing.

And there you have it. As is so often the case with Google’s announcement, the most exciting new features the company showed off don’t have an ETA and may never launch, but until then you can hold yourself over by getting your weather forecasts on Google Maps.

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New York-based indoor ag company Gotham Greens raises $87 million

Lettuce celebrate the rise of indoor agriculture.

In the past few months AppHarvest, a developer of greenhouse tomato farms went public through a special purpose acquisition vehicle, vertical farming giant Plenty raised $140 million, and now Gotham Greens, which is developing its own network of greenhouses, is announcing the close of $87 million in new funding.

These new agriculture companies certainly have a green thumb when it comes to raising a cornucopia of capital.

Gotham Greens latest round takes the company to a whopping total of $130 million in funding since its launch. Investors in the round included Manna Tree and The Silverman Group.

While App Harvest has taken to tomatoes in its attempt to ketchup with the leading agricultural companies, Gotham Greens has decided to let its hydroponically grown leafy greens lead the way to riches.

The company said it would use the latest funding to continue developing more greenhouse across the U.S. and bring new vegetables to market.

“Given increasing challenges facing centralized food supply chains, combined with rapidly shifting consumer preferences, Gotham Greens is focused on expanding its regional growing operations and distribution capabilities at one of the most critical periods for America,” said Viraj Puri, the co-founder and chief executive of Gotham Greens, in a statement. 

The company already sells its greens in over 40 states and operates greenhouses in Chicago, Providence, R.I., Baltimore and Denver. From those greenhouses the company distributes to 2,000 retail locations including Whole Foods Markets, Albertsons stores, Meijer, Target, King Soopers, Harris Teeter, ShopRite and Sprouts. 

And Gotham Greens has already begun to expand its product portfolio. The company now sells packaged salads, cooking sauces, and salad bowls in addition to its greens.

Assorted packages of Gotham Greens lettuces on a white field. Image Credit: Gotham Greens

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Beyond Meat is introducing pre-packaged meatballs at stores across America

Indulging in American food companies’ favorite pastime of marketing innovations that no one needs but potentially everyone wants, Beyond Meat is launching Beyond Meatballs in grocery stores nationwide this week.

The new product can be put on top of spaghetti, all covered with cheese, and comes pre-spiced with a blend of Italian spices, according to a company statement.

The company’s meatballs have 30% less saturated fat and sodium than real meat and will be available at Whole Foods, Stop & Shop, Sprouts, Harris Teeter, Kroger and Albertsons, and more by early October, according to the statement.

The suggested retail price for these pre-spiced and pre-rolled protein replacement balls of soy is $6.99 for 12 meatballs.

For Beyond Meat, which already has a line of breakfast sausages and pre-made burgers under the “Cookout Classic” brand, the new product is the latest effort to win more of the meat aisle at the 26,000 outlets across the U.S. that stock the company’s products.

“We’re thrilled to introduce Beyond Meatballs as they deliver on consumers’ growing demand for delicious and nutritious plant-based meat options without GMOs or synthetic ingredients,” said Stuart Kronauge, Chief Marketing Officer, Beyond Meat. “We are proud to introduce our newest innovation at retailers nationwide and know our fans will be excited about the great taste and convenience of Beyond Meatballs.”

As part of the marketing campaign the company is offering free meatballs and spaghetti or a meatball hero at Beyond Meatball pop-up shops in New York and Los Angeles on Wednesday.

Would-be Beyond Meatball eaters will have to reserve their complimentary meal and pick-up time in advance via The Beyond Meatball Shop’s LA and NY pages on Resy, while supplies last.

#albertsons, #beyond-meat, #food, #food-and-drink, #kroger, #los-angeles, #louisiana, #meatballs, #new-york, #tc, #united-states, #whole-foods

From farm to phone: A paradigm shift in grocery

In the blink of an eye, millennials, moms and grandparents alike have abandoned the decades-old practice of wandering dusty grocery aisles for the convenient and novel use of online grocery. While Instacart, Amazon Fresh and others have been offering an alternative to brick-and-mortar grocery for years, it is the pandemic that has classified them as essential businesses and more than ever afforded them a clear competitive advantage.

But these past couple months have seen not only drastic changes in consumer behavior, but also fundamental shifts in the business models adopted by grocers worldwide. These shifts are not temporary — indeed, they are here to stay, corona-catalyzed and permanent.

Fulfillment innovation can drive efficiency and cost savings

For the consumer, online grocery generally starts and ends the same way: They place their order on an app or website, and hours later it shows up at their door. But the ways those orders are being fulfilled run the gamut.

The most widely known approach comes from Instacart, which relies on hundreds of thousands of human shoppers fulfilling customers’ online grocery orders by shopping side-by-side with regular brick-and-mortar customers. The model clearly works for Instacart, which is valued at nearly $14 billion after its latest raise.

However, this model is far from ideal. Even pre-COVID, shoppers were known to crowd out regular customers, not to mention introduce high delivery costs and the element of human error to the fulfillment process.

One obvious solution has become the central fulfillment center, or CFC. CFCs are large, standalone warehouses — often serving distinct geographies — that can supply both brick-and-mortar stores and online grocery deliveries. As order volumes rise and consumers demand faster and faster delivery times, innovation has already been infused into the CFC model.

Some grocers, notably Kroger, believe that introducing robotic automation into CFCs via solutions such as Ocado can create economies of scale for fulfillment. These CFCs deploy fulfillment robots, controlled by air-traffic control tech, that run along a grid system and move goods via categorized crates. Kroger is continuing its investment in the model, recently announcing three new Ocado-automated CFCs in the West, Pacific Northwest and Great Lakes regions of the United States. The smallest location is over 150,000 square feet.

While Kroger remains uniquely attached to the CFC model, Albertsons/Safeway, Walmart and many others prefer the microfulfillment center (MFC). MFCs, typically far smaller in size (think ~10,000 square feet), are automated warehouses carved out of the back of existing stores that drive faster fulfillment times in a smaller geographic area, allowing chain stores to use their numerous geographic locations to act as effective fulfillment/delivery hubs for e-grocery coverage.

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Impossible Foods rolls out to nearly 1,000 new grocery stores and supermarkets

Starting tomorrow, 777 supermarkets in California, Illinois, Indiana, Iowa and Nevada will begin stocking the Impossible Foods plant-based meat substitute.

Fueling the increased distribution and a push to expand its product suite and geographic footprint domestically and internationally is a $500 million round of funding the company closed in March.

Some of that money is supporting the company’s debut at stores like Albertsons, Jewel-Osco, Pavilions, Safeway and Vons.

In all, the company said it would be in nearly 1,000 grocery stores by tomorrow. That includes all Albertsons, Vons, Pavilions and Gelson’s Markets in Southern California; all Safeway stores in Northern California and Nevada; Jewel-Osco stores in Chicago, eastern Iowa and northwest Indiana; Wegmans stores on the East Coast and Fairway markets in and around New York.

Since its debut in September, the company said it was the number one item sold at the locations it was available on the East and West coasts.

The company’s 12-ounce packages are sold for somewhere between $8.99 and $9.99 and it plans to soon introduce the Impossible Burger at even more stores nationwide.

“We’ve always planned on a dramatic surge in retail for 2020 — but with more and more Americans’ eating at home, we’ve received requests from retailers and consumers alike,” said Impossible Foods’ president Dennis Woodside, in a statement. “Our existing retail partners have achieved record sales of Impossible Burger in recent weeks, and we are moving as quickly as possible to expand with retailers nationwide.”

Even as the company announced its expansion, it made moves to assuage any consumer concerns over the processes in place at its manufacturing facilities.

Impossible Foods said it had instituted mandatory work from home policies for all of its employees who can telecommute; restricted visitors to its facilities and those operated by co-manufacturers; banned all work-related travel; and implemented new sanitizing and disinfection procedures at its workplaces.

“Our No. 1 priority is the safety of our employees, customers and consumers,” Woodside said. “And we recognize our responsibility for the welfare of our community, including the entire San Francisco Bay Area, our global supplier and customer network, millions of customers, and billions of people who are relying on food manufacturers to produce supplies in times of need.”

The company said it was proceeding with its research and development initiatives; accelerating the ramp of its production facilities; and moving to broadly commercialize its Impossible Sausage and Impossible Pork products.

Impossible Foods has raised $1.3 billion from investors, including Mirae Asset Global Investments, Khosla Ventures, Horizons Ventures and Temasek.

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