Point pickup acquires e-commerce platform grocerkey for $42m to allow for same-day delivery | techcrunch

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 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. > Tyltgo’s same-day delivery platform lets small businesses compete > with Amazon Fiorita founded Point Pickup in 2015 as a reaction to Amazon’s increased omnipotence with

the noble, if not naïve, 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.  > How Nuro became the robotic face of Domino’s 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.