Delivery: Growing at Light Speed
Think about how you get anything you want or need. How do you get your groceries, socks, or batteries? There is a good chance that many of us would today say that we order them online and they are delivered to our homes. Delivery food, and it’s twin, takeout food, has been present in the United States since the early 20th century. After the end of World War II, as people flocked to the suburbs, delivery became a mainstream way for restaurants to service their customers. It seems like a natural continuation of a century long trend that today in 2021, delivery is more popular than ever before.
How big is delivery really?
It is normal to wonder how large the home delivery industry is today. With the COVID-19 pandemic still raging on, many people are trying their best to limit public exposure. By relying on delivery services, many have been able to create a new normal for themselves.
Hot food delivery:
Grubhub, an industry leader in food delivery that controls around 18% of the market, served more than 22 million customers in 2019. Uber Eats, the drive sharing company’s food delivery arm, looking to distinguish itself in an increasingly crowded space, just purchased Drizly, a Boston based alcohol delivery service, for $1.1 billion. Liquor sales have skyrocketed during the pandemic, and online liquor sales are increasing, with an expected 7% market share by 2024.
Besides takeout delivery companies like Uber Eats and Grubhub, grocery delivery companies have been popping up left and right. Instacart, a grocery delivery service, employs people to go grocery shopping for others and then deliver it to them. The company saw a 500% increase in order volume and their worker base grow by over 350,000 workers.
Delivery in Cannabis has grown rapidly since the COVID-19 pandemic hit the United States in March of 2020. Because of the limitations put on the cannabis industry due to the industry still being classified as Federally illegal, delivery is fairly new in this space. The market for legal cannabis delivery is still developing. Lantern, a subsidiary of Drizly, was not included in Drizly’s recent merger with UberEats.
What problems does this market face?
Each sector of the Delivery Industry faces unique challenges. For example, in food delivery, state and federal regulators are beginning to crack down on delivery service fees, placing caps on them in certain locations. The cannabis delivery space struggles with the lack of federal recognition and the infrastructure that comes with that. Currently, some states with legal cannabis programs require retailers to get a new delivery license to begin delivering to customers.
A major issue that affects the entire delivery industry is the classification of workers as contractors or employees. During the 2020 election, Californians voted in favor of Proposition 22, a ballot measure that keeps California gig-workers as contractors. This vote undid a California law implemented earlier in 2020 that required companies like InstaCart and Uber to treat workers as employees, who receive minimum wage payments and opportunities to receive insurance. The rights of gig-economy workers will continue to be a hot topic across the United States for years to come.
How can ACS Safe help?
Whether contracted or a full time employee, drivers need to be protected just like the rest of us, and that is where ACS Safe and the AllClearSystem™ fill in the gaps. Our delivery module is perfect for someone always on the move. You never know what can happen while you’re on the road, and it is important to have something watching your back. If you would like to learn more about the AllClearSystem™ or our cannabis focused derivative, ACS Safe, feel free to check out our websites: allclearsystem.com or ACSSafe.com.