For a while, it seemed like there was a new app every week promising New Yorkers food and other deliveries in 15 minutes or less.
Now, it looks like there might be a bump in the road — or more bumps — for these startups.
In New York, council member Christopher Marte, who represents District 1 in Lower Manhattan, says the promise of grocery deliveries in minutes “creates a lot of risk, a lot of pressure and a lot of stress. [for] workers”, reports fast company (February 23).
Marte also says the pressure can wear down cyclists and cause them to run red lights, ride against the flow on one-way streets and break other traffic laws. He has crafted a bill, which he plans to introduce in the coming weeks, that would ban such apps from marketing 15-minute turnaround times to customers.
The bill is part of broader legislation he has drafted that aims to “bring a lot more oversight and accountability” to these operations.
According to Gale Brewer, an Upper West Side councilman and former Manhattan borough president, many apps operating in the city have secured spaces zoned for retail businesses — not warehouses — but actually operate warehouses. New York Post (the 21st of February).
The councilor asked the city’s buildings department and planning department to investigate whether the apps violate zoning laws and could introduce legislation around the pending responses.
Delivery app Gorillas has already ditched its promise of 10-minute grocery delivery and tweaked its business model following scrutiny from lawmakers, as well as increased competition, reported Business Intern (February 24). Instead, the company is adding walk-in service in the city.
SHORT OF MONEY
In addition to objections from lawmakers, superfast delivery services in New York are also racking up huge losses as they fight for customers, reports The Wall Street Journal (January 30).
Losses are heavy considering the high cost of advertising and paying couriers, industry investors say. Some even record an average loss of more than $20 per order.
information (January 31), reported in January that instant delivery startup Jokr had entered talks to sell its New York business, which forms the bulk of its US business, after suffering heavy losses in the city. , according to three people with direct knowledge of the matter.
This report followed by a Business Intern in December 2021, this superfast grocery delivery startup 1520 shut down after the company ran out of capital. He had been in acquisition talks with Jokr, but a deal never materialized.
COMPANIES ALWAYS AHEAD
Despite all this, some companies are still launching new services in the field of fast delivery.
- Uber eats recently revealed that it is partnering with FastAF Technologies, an organized fast-commerce retailer, to launch 25-minute delivery in New York, Los Angeles and San Francisco.
- Grubhub also partners with real-time grocery delivery service Buyk to offer super-fast 15-minute grocery delivery on the Grubhub marketplace.