10-min Delivery 📦, Gigs & the Travel Industry

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10-min Delivery Startups vs. Gig Workers 

The Gig Economy is one of the world’s hottest machinations of the last decade. Armed with a smartphone and a vehicle, workers can now sign up to do any task — ferry passengers, perform household chores, pet sit, or deliver groceries. The model is flexible for workers and profiteering for companies who can conveniently do away with paying for employment benefits. 

But there’s a new business in town that seeks to throw out this playbook. Instant Delivery. 

A drove of “instant delivery” startups— Jokr, Buyk, 1520, Fridge No More, Gorillas — to name a few, promise super-fast, convenience-store-style delivery directly to your doors. Deliveries are made in as little as 10 minutes after placing the orders on the apps. And the couriers making these deliveries aren’t even gig workers —they’re employees.

Gorillas, an 18-month old German startup is a formidable veteran in this space. Its employees receive health care benefits and paid time off, and all delivery-related equipment - e-bikes, reflective vests, and rain gear — are provided by the company for free. Workers who’ve delivered meals for UberEats for years have switched to these startups as full-time employees earning $18 hourly wages plus tips.

How it works:
Unlike DoorDash or UberEats, these startups actually have a physical presence. They generally rent small storefronts in densely populated urban areas where employees stock and bag order items and hand them over to couriers who ferry them to their destination.

The companies benefit from a surge in funding for food and beverage delivery businesses - $16 billion in 2021 so far, according to CB Insights. The cash influx allows them to subsidize delivery making it cheaper than store-bought products. 

In an era where companies such as Uber, Lyft, and DoorDash offer primarily low-wage contractual work minus benefits, this new arrangement is an unexpected reflection of the current labor market. 

The unskilled labor market is very, very hot right now, with hourly pay rates in cities well over $15, often at $18. Gig economy companies will find it harder to recruit workers at their unfairly low-rates.

The Best Year since 1950

In the last two quarters, American companies posted their fattest margins since 1950. Overall profits were up 37% from last year, according to latest data from the Commerce Department. 

This obviously translated into higher individual incomes as businesses paid out more cash to their employees with total compensation up 12% in the last quarter from a year earlier. Hourly earnings kept up with the fast-rising cost of living. 

With more money to spend, it’s no surprise that U.S. consumer prices also rose 6.2% in the last 12-months, the most since 1990.

The three legs of the economic stool - profits, wages, and prices - all grew substantially this year. This, despite the fact that the economy’s been through a record-breaking low due to the pandemic. 

Reason: America’s Covid-era fiscal policy. 

Ample support for households meant their incomes actually rose so they bought more stuff from businesses which translated into higher demands, higher prices and therefore higher profits.

Unfortunately for Biden, pandemic spending could actually be the primary driver of rising inflation.

This may not last for long though as Covid-era commitments by the Fed start fading. But in the near term, there’s enough fuel in the economy already to sustain demand, jobs and higher pay. Households have cash saved up and companies have earnings they can invest.

In Numbers: Small Business Saturday

51 million | Number of people who participated in Small Business Saturday. 

179.8 million | Number of unique shoppers who made in-store and online purchases during the holiday weekend.

82% | Percentage of shoppers surveyed who felt the deals were the same or better than last Thanksgiving weekend.

In Charts: Going Nowhere

The tourism industry won’t be touching skies this year either. Despite so many airline startups propping up this year, offering cheap prices, despite low cost oil and aircrafts and despite ballooning travel desires, 2021 may prove even worse for the industry than last year. Courtesy: Delta and Omicron.

Let's Talk About The Fear of Success
What is the fear of success? It's the fear that causes people to procrastinate and self-sabotage. People are simultaneously desperate to succeed and scared to succeed.

Shorts ⏳
Super-cheap Apartment - Ikea is offering a mini apartment in Japan - complete with a kitchen, a washing machine, a bathroom and a small loft bed - for less than $1 a month

Amazon and Covid - Amazon accused of under-reporting Covid cases contracted at work. 

Cycling is good - A New Zealand MP cycled to hospital while in labor - gave birth an hour later. 

Santas in short supply. There’s been a 121% increase in demand in the US to hire santas, but 10% fewer impersonators this year.

Beer Art NFT - Budweiser's first NFTs - dubbed the Heritage Collection - costing $499 and $999, sold out within the first hour 

No Giphy for Meta - The UK competition regulator ordered Meta to sell Giphy, the online database for gifs it bought in May 2020 for $400 million

Non-diversity in Managers - A mere 1.3% of the $70 trillion under management in the U.S. is controlled by diverse female asset managers.
Stash Recommends: Tools to Explore
👨‍🎨 Design Wizard: An easy to use and affordable graphic design software that allows you to create amazing designs for your marketing campaigns.

💪🏼 LeverLever provides the best rated recruiting software, applicant tracking system (ATS), and recruitment marketing tools used by top businesses.

🏦 FoundersuiteA collection of software tools and templates to help entrepreneurs gain investments. Startups using Foundersuite have raised over $250M in seed and venture capital.

👨‍👨‍👧‍👦 Gigster: Gigster creates teams of top global talents and provides Elastic Staffing, to continuously right-size your team and reduce wastage.

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