Just last year, McDonalds and UberEats had announced its exclusive partnership and the start of McDelivery across the US, available in 1,000 restaurants. In just a year, the numbers of the restaurants have gone up exorbitantly to 9,000 out of the existing 14,000 locations, as revealed by the President of US’ McDonalds, Chris Kempczinski.
The Union Seems Much Appreciated But Bigger Deals Have Flown Under The Radar
Having inaugurated the franchise at its new location in New York’s Times Square, the President spoke about the expanding business and its blooming relationship with UberEats. McDelivery accounts for 2% to 3% of the total McDonalds business in the States. This does not mean that the sales figure is evened out throughout the available locations. While, near universities, the sales have been 15% of the restaurant’s total, at other locations, people find it more convenient to order through a drive-thru.
But this isn’t just some Happy Meal Deal. Companies are expanding into additional verticals…and these deal could be flying under the radar right now. It’s true that new markets are difficult to enter, especially if it is a brand new way of doing business, such as the on-demand economy. But unlike the Ubers and Postmates in their early years, a company called ParcelPal (PTNYF) (PKG) has already aligned with one of the largest online juggernauts in the history of the modern world.
ParcelPal (PTNYF) (PKG) has engaged in a work order contract with Amazon.com Inc. to fulfill package delivery on behalf of Amazon to residents in Metro Vancouver, British Columbia, Canada. ParcelPal (PTNYF) (PKG) has already seen exceptional growth in this division of the company since launch, growing over 115% week over week, delivering approximately 150,000 packages since mid-November.
The company is currently maintaining an average of 99%+ delivery success rate and is delivering thousands of packages daily on behalf of Amazon. The contract signed involves delivering for Amazon “Core” services. This entails delivering Amazon merchandise to Greater Vancouver residents.
The company is already aiming to expand on both the existing “Core” business and Amazon Prime services! This being said, “Uberization” is being handled by ParcelPal in other key verticals…like legal cannabis!
A Green Rush Investors Are Taking Notice of
Something that is beginning to set ParcelPal (PTNYF) (PKG) apart from its immediate competition is its diversification strategy. Not only is the company working with the likes of Amazon, but it is also entering into key verticals that are seeing an increase in rapid demand. Right now, ParcelPal has built relationships with businesses in both alcohol and cannabis.
The Company has completed an additional cannabis distribution agreement with Kiaro for the delivery of cannabis products through Kiaro’s physical and digital retail channels. The initiative will consist of:
- Distribution: ParcelPal and Kiaro will jointly develop an optimal roadmap for the distribution of adult use cannabis, ultimately creating the ‘Amazon Effect’ within the cannabis industry.
- Accessibility: The companies will integrate their technology platform to enhance the user experience and improve product accessibility.
- Compliance: All cannabis products delivered will be within parameters set by all the relevant regulatory bodies.
- Safety: Both companies are dedicated to socially responsible cannabis retail and, by enabling cannabis delivery within the hour, hope to deter cannabis-impaired driving.
“The distribution partnership with ParcelPal illustrates our ongoing commitment to normalize cannabis use, by improving product accessibility. Cannabis can enhance life enjoyment when used responsibly, and the agreement enables us to support more Canadians in this pursuit. By expediting cannabis delivery, we hope to legitimize the industry and encourage cannabis curiosity, exploration and education.”President and CEO of Kiaro, Daniel Petrov
UberEats – A Key Growth Diver For Uber & Additional Catalyst For On-Demand Economy
It’s true that since going public, companies like Uber and Lyft faded in the market but the fact of the matter is, on-demand delivery may be the real growth story here…especially considering companies flying under the radar like ParcelPal (PTNYF)(PKG). For example, UberEats has been a major growth source for the parent Uber, whose radio-cab service has seen a slowdown in its business for the past few quarters. UberEats seems to have doubled its installation figures and now proudly stands at 8 million installs, of which India represents a total of 24%.
Interestingly, UberEats earns more than its parent Uber. Specifically, UberEats’ profits margin has been gradually progressing well compared to Uber. Eats recorded gross bookings growth of 108% to $3.07 billion in the first quarter. For the first quarter of 2019 alone, Eats reported $536 million in revenue for Uber, up 100% from the same quarter in 2018. And this could be just the beginning of a major industry like this.