Four high-momentum food delivery startups which could become investment (or M&A) targets for CPG brands.
If finalized, Amazon’s recent Whole Foods acquisition would hand Amazon 400+ well-located retail locations that can serve double-duty for home grocery delivery. This ~$14B deal and any further consolidation amid online/offline grocers directly threatens CPG brands that may be squeezed and forced to supply goods at lower prices, pressuring their margins.
One route for CPG food brands is to look at food delivery startups as platforms for more direct links to consumers and as alternative distribution channels, as well as platforms for collecting consumer preference data.
We’ve identified 6 deals since 2015 by major CPG brands into food delivery startups, even as overall food delivery deals have tapered off compared to last year and 2015.