HomeDelivery, Logistics & FulfillmentRapid food delivery business picks up advertising side hustle

Rapid food delivery business picks up advertising side hustle

Ultrafast grocery startup Jokr is looking to supplement its delivery business. They are looking forward to this with a new venture of an advertising platform.

According to a Bloomberg report, it aims to put physical ads on drivers’ bags and within delivery orders. By making this effort, Joke will leverage purchasing data to help brands become effective in their media placement. The company’s CEO, Ralf Wenzel, told the news outlet, “If we can share with retailers what people are buying, then it gives a very targeted possibility to advertise.”

A report states that on-demand delivery business losses can amount to $20 per order on average, including ad spending. Buyk, a Russian-backed ultrafast grocer, could not secure the funding it needed to encounter the challenges.

These challenges got posed by sanctions related to the invasion of Ukraine and, as such, forced to close up shop.

Jokr also struggled. A report also stated that the company was looking to sell its New York business. In addition, other Companies in the eGrocery category express skepticism about the long-term feasibility of the model.

Chieh Huang is the CEO of membership-free wholesale eTailer Boxed. He said in an interview with PYMNTS phenomenon that the industry consumes money. They are spending $20-$25 on baskets out. There’s just not enough gross profit dollars to play with after delivery, after personnel, and marketing.

Alex Weinstein, the chief digital officer at online grocer Hungryroot, expressed a similar thought in an interview with PYMNTS.

He said that it is better if your item arrives in an hour rather than taking a week or longer. This saves the effort of planning that far ahead. However, at a certain point, there’s just diminishing marginal returns.

Many companies are boosting their ad capabilities. For example, Kroger announced that the delivery business is expanding access for advertisers through its retail media business. Also, Instacart announced a suite of new marketing products for brands, including branded pages and new display ads.


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