With brief, occasional, italicized and sometimes gratuitous commentary…
• DoorDash To Acquire Deliveroo
From the New York Times:
“DoorDash announced two deals worth billions of dollars on Tuesday, saying it has agreed to acquire Deliveroo, the British food delivery company, and SevenRooms, a platform used by hotels and restaurants to manage reservations and marketing.
“The acquisitions would enable DoorDash, the dominant food delivery app in the United States, to expand overseas and add reservation management technology to be used by global businesses.
“DoorDash said its agreement to buy Deliveroo, a British food delivery service, in a roughly $3.9 billion deal would give it a larger footprint in Europe and a presence in the Middle East, covering millions of users in more than 40 countries.
“It said it had agreed to acquire SevenRooms, a New York City-based software company, for about $1.2 billion. The all-cash transaction was expected to close during the second half of 2025, it said.”
The story notes that “Deliveroo has faced intense competition and legal challenges to its gig-economy business model since launching in 2013. Its shares dropped as much as 30 percent in its first minutes of trading after going public in 2021.
“DoorDash, which is based in San Francisco, bought Wolt, a Finnish food delivery company that operated in 23 countries, primarily in Europe, for about $8.1 billion in 2022.”
Just another consolidation move, part of a trend that we’re going to see a lot more of going forward. It is all about economies of scale.
• Instacart Looks To Bring Some Fizz To Party Planning
From TechCrunch:
“Instacart has launched a new drinks and snack delivery app called Fizz, the company announced on Tuesday. The 21+ app is built for friends and family and is designed to make it easier to stock up for a party or get-together.
“The host of a party can invite guests into their Fizz cart to allow everyone to choose what they want to bring to the gathering. The app aims to eliminate the headache of splitting the bill, so everyone pays for what they add to a cart … With the launch of Fizz, Instacart is diversifying its revenue streams and offerings, all while appealing to new types of customers. The social, party-planning aspect of Fizz enables the company to tap into a younger demographic that may not be using Instacart.
“As the host on Fizz, you can create a party cart and drop the link into your group chat. Guests can add to the party cart even if they don’t have the Fizz app downloaded. You decide when to place the full order and get it delivered immediately or scheduled in time for your party for a flat $5 delivery fee. Guests don’t have to pay for a delivery fee or any other sort of fee.”
I like this idea. It is the party version of a wedding registry – makes a lot of sense, especially for young people.
• Rite Aid Files For Bankruptcy
From the Washington Post:
“Rite Aid filed for bankruptcy protection Monday for the second time, less than a year after the embattled drugstore chain emerged from Chapter 11 as a private company.
“Rite Aid said in a news release that it’s looking for a buyer and is in ‘active discussions’ with multiple prospects. The Chapter 11 filing in U.S. Bankruptcy Court in New Jersey gives Rite Aid access to $1.94 billion in new financing to fund the sale process, during which it plans to keep stores open … Rite Aid first filed for bankruptcy in October 2023 and received $3.45 billion in new financing to support its reorganization. The company emerged from Chapter 11 in September after slashing almost $2 billion in debt and closing hundreds of stores.
“Despite this downsizing, Rite Aid has ‘continued to face financial challenges’ that have intensified as the retail and health-care sectors evolve, chief executive Matt Schroeder said in a statement, adding that the retailer will focus on keeping pharmacy service uninterrupted.”
If Rite Aid goes away, that will be very bad news for CVBS and Walgreens, which mostly look competent in comparison.
• Amazon Advises Global Vendors About How To Survive Tariffs.
From The Information:
“Amazon sent many merchants selling goods on its e-commerce site a memo with pointers on how to navigate trade uncertainty amid steep U.S. tariffs. Suggestions included pivoting to selling in new countries and reshuffling inventory to different warehouses.
“Amazon also suggested merchants consider taking out loans, giving them funds to ‘invest in the areas of your business that make sense for you,’ wrote Dharmesh Mehta, a senior executive overseeing Amazon’s seller relationships. But that kind of approach might not be a cure all for online sellers, with some e-commerce lenders growing skittish as 145% tariffs on Chinese imports slam potential borrowers.”
The story notes that “lenders including Wayflyer and Settle that specialize in fronting money to online merchants say they are scrutinizing loans more closely and pulling back on riskier borrowers. And some merchants say they are seeing Shopify, another major e-commerce lender, pull new funding offers entirely.”
The story notes that Amazon “doesn’t lend to small merchants directly, but runs a service called Amazon Lending to refer them to fintech firms including Parafin and SellersFi, which decide whether to issue loans.”
When I read this story, and saw that Amazon was encouraging tariff-afflicted vendors to take out loans in order to stay in business, it kind of reminded me of the hole in which so many college students find themselves – they may get through school and solve the immediate problem, but long-term indebtedness affects their ability to thrive. This all just strikes me as a house of cards that could crumble at any time, throwing global marketplaces into even greater chaos.
• Nick Bertram Takes COO Job At Michaels Stores
Crafts retailer Michael’s announced that the company has hired Nicholas Bertram – most recently the CEO of Flashfood and before that the president of The GIANT Company – to be its new president and COO.
In a statement, Bertram said, “I’m thrilled to join David Boone and the team at Michaels Stores as President & Chief Operating Officer, where some remarkable team members are hard at work across North America to help Makers and Families create amazing things each week. This checks every box for what I wanted to work on after more than 25 years in the grocery industry: Specialty Retail that is Omni Enabled … Household Name that is Multi-National … Privately Owned with Growth Minded Investors … (and) Purpose Led and People Centric.”
Since meeting him when he was running GIANT – along with Hannaford, a bright spot in an otherwise generally dismal Ahold Delhaize fleet – I’ve always thought that Nick Bertram is one of the most talented retail execs out there – this is a gain for Michaels, and a loss for the food industry.
• Weight Watchers Files For Chapter 11 Protection
From the Wall Street Journal:
“WeightWatchers, whose dieting and wellness programs were once a central part of U.S. fitness culture, has filed for bankruptcy to adjust to the increasing use of drugs like Ozempic for weight loss.
“WeightWatchers has been offering drugs as a complement to its legacy business model of providing food consumption and exercise plans, though the company’s clinical business hasn’t grown fast enough to offset the decline in subscriptions to its core programs as many women decide the drugs are all they need.
“WeightWatchers has also struggled with the advent of free fitness apps and advice from social-media influencers, which have provided other channels for women who seek guidance to hit their weight-loss targets.
“WeightWatchers Chief Executive Tara Comonte said the company’s debt load has been a burden and she is hopeful that deleveraging will help free up cash flow so it can innovate and compete. WeightWatchers intends to invest in expanding its clinical business while also rejuvenating its legacy programs, she said in an interview … WeightWatchers’ stock will be largely wiped out as the new ownership group takes control, though existing shareholders are set to retain a 9% stake under the company’s plan, which will cut its debt by roughly $1 billion.”
The Ozempic economy claims another victim. Not the first, won’t be the last.
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