Biking hastingly beside the sidewalks of Manhattan are countless delivery workers rushing to drop off snacks like a pint of ice cream in under 15 minutes. Not (only) because it might melt, but because of the promise of instant delivery.

These startups—from Fridge No More to Gorillas to Jokr—have popped up across American cities seemingly overnight this past year. And more are on the way: Turkey–based Getir hit New York City this month, and also expanded into Boston.

• Funding has come in step: “Dark convenience stores” raised $5.8 billion via VC investments in the first nine months of 2021, according to CB Insights.
• Jokr became a unicorn less than a year after it was founded.

In population-dense areas like New York and San Francisco—where the need for speed dominates—these options can make sense.

“Big cities are not only easy to navigate for fast delivery, but often have a higher share of younger population, smaller households, [and] preference for ready-to-eat foods and snacks versus cooking a family dinner every night,” Inna Kuznetsova, CEO of 1010data, told Retail Brew.

• Consider another hotspot: college campuses, which is how Gopuff got its start in 2013.

The long haul

But success for instant-delivery startups isn’t guaranteed, especially as they eye expansion plans beyond big cities—and larger players get in on quick commerce.

• DoorDash introduced 15-minute delivery in New York this month, while Amazon and Uber have both expressed interest.

Zoom out: Delivery giants like DoorDash not only have the experience, but additional resources to sustain and develop their own solutions, explained Ashley Rocha-Rinere, manager in the consumer practice at Kearney, in an email. That could leave ultrafast-delivery companies in a precarious position.

“These companies have zeroed in on too small a use case that is easily solved by players already in the space,” she said.

Click here to read more on the state of instant delivery.—JS

Don’t expect those TikTok–triggered ingredient shortages to end anytime soon.

The video-sharing app is partnering with Virtual Dining Concepts to introduce ~300 delivery-only TikTok Kitchens in March, with 1,000+ slated for 2022. The companies are hoping to cash in on the platform’s viral recipes like “baked feta pasta,” which was Google’s most-searched dish of 2021.

“Look, you have a platform with a billion viewers monthly who are constantly engaged, as the numbers show,” Virtual Dining Concepts’ cofounder and restaurateur Robert Earl told Bloomberg. “It’s the first time there’s a brand like this out there—an audience of hundreds of millions of people.”

• Virtual Dining Concepts, founded in 2018, has partnered with celebs like Mariah Carey for her Mariah’s Cookies line, and raised $20 million in October.

On the menu: Earl said the ghost kitchens (of course TikTok would hop onto one of the food industry’s buzziest trends) will operate out of restaurants he owns like Buca di Beppo and Bertucci’s. Profits from the kitchens will go to the recipe creators and bolster food talent on the platform, TikTok said, telling TechCrunch that these creators will also be credited.

• TBD on how TikTok plans to pinpoint the original recipe sources.

TikTok Kitchen’s offerings, set to be refreshed quarterly, will also include popular recipes like pasta chips and corn ribs. For the Kewpie mayo stockpilers—no word yet on the availability of an Emily Mariko salmon rice bowl.—EC

Today’s top retail reads.

Packaged deal: How one company is rethinking the humble mailbox to accommodate drone deliveries. (Axios)

Step by step: Inside the long-term strategies for today’s “It” shoe brands. “We are always selling half of what we’re being asked,” Amina Muaddi said. “Buyers are interested, but you don’t want to…distribute a lot. Because it’s so easy to get bored nowadays with the product.” (Business of Fashion)

Bundled up: Remember the Amazon coat? Here’s its journey through the supply chain. (Insider)

Catch up on the Retail Brew stories you may have missed.

• The most overhyped retail trends of 2021
• Gift cards are more popular than ever—and that’s okay by retailers
• DTC brands might be losing their shine