Emil Michael, Chairman and CEO of DPCM Capital is often approached to discuss the fate of ride-sharing and food delivery apps. The former Uber chief commercial officer appeared on BarronsMarketBrief and CNBC TechCheck revealing its projections on the subject.
Emil Michael predicts a strong recovery in ridesharing compared to what happened in 2021. “When it comes to food delivery, I expect growth to slow as people go back to restaurants,” Emile Michel said. “However, for fast trade, I see massive growth as people double up to save a trip to the convenience store.”
As fast trade, or q-commerce, is growing in popularity with consumers, Emil Michael envisions the complete demise of traditional grocery stores within the next decade. As ride-sharing activity has taken a hit during the pandemic, food delivery has exploded. Bloomberg reports that meal delivery services have skyrocketed 13% from 2020 to 2021.
Emil Michael expects fast trade to continue to soar
At TwitterEmil Michael recently praised the rapid trade and progress of gopuff, a Philadelphia-based food and consumer goods delivery company he invested in early on. As the father of a toddler, he knows firsthand the benefits of fast trading and how essential it has become in the lives of so many Americans. Gopuff generated more than $2 billion in revenue last year, as reported by Axios.
Gopuff co-founder and CEO Rafael Ilishayev revealed on the This Week in StartUps podcast that Gopuff’s average delivery time is just 17 minutes – and in new York In town, it’s even faster, with delivery times in the low teens. The brand has distribution centers ranging from 5,000 to 20,000 square feet, according to Ilishayev. And Gopuff’s expansion explodes. Nearly 30% of Americans are within a mile of a Gopuff fulfillment center.
Billions of dollars in venture capital are flowing into Gopuff, which currently operates 300 fulfillment centers in the US and UK, says Ilishayev that number will continue to grow as he plans to open 30 Gopuff buildings per month. YipItData shows Gopuff leading the US market in first-party relationship convenience. The smart fast delivery service only charges a flat $1.95 delivery fee and operates in the US, UK, and France. Gopuff also offers potential customers social media discount codes and statement credits for Chase credit cardholders as an added incentive.
“People want a one-stop shop,” Ilishayev said. “They don’t just want hot pizza. The average order size is just under $30.
From pet food and diapers to cold medicine, fruits and vegetables, and alcohol, Gopuff delivers the convenience of fast-paced commerce at blazing speeds. According to Emil Michael, this is a trend that will only grow.
“Uber One was an obvious, albeit late, new product for Uber to launch,” said Emil Michael. “It ties all Uber services like Rides and Eats into one loyalty program, which is smart because it rewards consumers for staying in business with Uber.”
While he envisions DoorDash will continue to have the largest market share of any hot food delivery app as it continues to innovate rapidly compared to Uber Eats and Grubhub, his confidence is that Gopuff will have a breakthrough. in 2022.
“The availability and scope of their services will continue to grow tremendously in the United States and elsewhere,” said Emil Michael. “They will be the company to watch in 2022.”
Consumer trends continue to drive carpooling needs
“People tend to forget that around 70% of Uber drivers drive less than 10 hours a week,” Emil Michael told Big Technology Podcast.
“And then half of them also drive for Instacart or Lyft or DoorDash, so it’s hard to consider them an employee of one company.”
In China, Emil Michael said around 20% of all meals are delivered. In the United States, this figure is 2% to 3%.
“There’s more revenue in food than in transportation,” Emil Michael told Big Technology Podcast. “I always think the ride-saluting The business is bigger than the food delivery business because when people rely on Uber, they tend to take it every day, multiple times a day. When people order food, they usually don’t order it multiple times a day from Uber Eats. They might order it a few times a week. It’s less of a daily habit.
Due to the constant development fast trade requirements, all eyes remain on what’s to come with carpooling and food delivery. The future is about meeting instantaneous needs, according to Emil Michael, who has invested in dozens of other startups such as Brex, ByteDance, Revolut, Gusto, SpaceXand Band.
“We’re all getting more impatient,” Emil Michael said. “I think this industry has a lot of legwork to do and people are just going to use it more than they have in the past.”
Posted on March 19, 2022