DTC Dispatch #034

LATEST NEWS

Uber Eats partners with Save A Lot, embracing discount delivery

Discount grocers are embracing app-based delivery.

On Tuesday, Uber Eats announced a partnership with the St. Louis-based supermarket chain Save A Lot to provide delivery services from 150 of its locations.

"Many consumers are price-conscious, and we’re excited to partner with brands like Save A Lot to increase value for Uber Eats customers," said Beryl Sanders, Uber's Director of U.S. Grocery and Retail Partnerships.

This partnership highlights the growing trend of discount grocery stores collaborating with app-based delivery services.

Earlier this year, Instacart began offering same-day delivery from various grocery stores that accept Supplemental Nutrition Assistance Program (SNAP) benefits, covering 96% of U.S. households that use SNAP.

In April, Amazon introduced a discount on grocery delivery for non-Prime members with a registered EBT card. Additionally, Walmart started offering its Walmart+ membership program at half the regular price for customers on government assistance.

Our take: The new partnership between Uber Eats and Save A Lot marks a big change in grocery delivery, with more discount grocers using app-based delivery services. This shift caters to consumers who value both convenience and affordability. For many budget-conscious shoppers, this partnership is a game-changer. It makes affordable groceries more accessible by combining cost-effective retail with the ease of home delivery. In times of economic uncertainty, having cheap groceries delivered is a huge advantage.

However, there are challenges, such as maintaining low costs while ensuring timely delivery and extending these services to rural areas where they are most needed. The success of these initiatives will depend on their ability to scale effectively.

Target to roll out generative AI chatbot for store employees

Target announced on Thursday that it plans to introduce a new generative artificial intelligence technology for its store employees at nearly 2,000 locations nationwide by August.

The company is rolling out an AI-powered chatbot tool called Store Companion, which will be available as an app on store associates’ handheld devices. This app is designed to help employees answer questions related to processes and procedures. It is currently being pilot tested at about 400 locations, with a nationwide launch planned.

In addition, Target is using AI to improve product display pages, offering personalized customer search results and summaries of product reviews. The company has also started implementing guided search on its online store, which will provide a broader selection of relevant items for customer searches. This enhanced search experience will be available to all customers later this summer.

Our take: Target's introduction of generative AI technology for store employees is a forward-thinking move that enhances customer service and operational efficiency. The AI-powered chatbot, Store Companion, aims to streamline workflows by helping associates quickly answer process-related questions.

Additionally, Target's use of AI to enhance product display pages and online search functionality personalizes the shopping experience. Personalized search results and product review summaries help customers make informed decisions, while the new guided search feature will broaden relevant item selections, increasing engagement and sales.

Overall, Target's investment in AI technology modernizes retail operations and enhances customer experiences, positioning the company as a leader in retail innovation. If successfully implemented, these initiatives could set a new benchmark for customer service and operational efficiency.

Bumble and Bumble Launches in the US Amazon Premium Beauty Store

Bumble and Bumble has launched in the Amazon Premium Beauty store in the US.

“The new Bumble and Bumble brand store in Amazon Premium Beauty is a styling destination,” said Corey Reese, senior vice president and global general manager of Bumble and Bumble. “We are excited to bring our full range of high-performing haircare products to Amazon’s expansive customer base, from our iconic styling products to our diverse range of shampoos and conditioners for all hair types and textures.”

Shoppers in the Amazon Premium Beauty store now have access to Bumble and Bumble’s signature hair education, featuring curated tips, tricks, and advice from the brand’s team of stylists.

In the Bumble and Bumble brand store, consumers will find Hair Styling 101, offering easy-to-follow, shoppable “short cuts” video content and a personalized Amazon styling quiz, “What is your style goal?” This interactive quiz helps consumers find products to achieve their personal hairstyling goals, with the convenience of an add-to-cart feature for easy purchasing.

Our take: The launch of Bumble and Bumble's brand store in the Amazon Premium Beauty store is a strategic move that promises to revolutionize the way consumers access high-quality haircare products. By making their full range of products available on Amazon, Bumble and Bumble is tapping into a vast and diverse customer base, greatly enhancing accessibility and convenience for shoppers.

Spotify launches a new Basic streaming plan in the US

Spotify is launching a new "Basic" streaming plan in the United States, the company announced on Friday. Priced at $10.99 per month, this new plan offers all the benefits of the Premium plan but excludes the monthly audiobook listening time.

This launch follows a recent price increase for the Premium plan, which rose from $10.99 to $11.99 per month. Bloomberg reported that the price hike was intended to help Spotify cover the costs associated with audiobooks.

The new Basic plan allows users to maintain the $10.99 pricing while gaining access only to music and podcasts. It’s an appealing option for users who don't utilize the 15 hours of monthly audiobook listening included in the Premium plan.

This plan could be the first of several new tiers from Spotify. The streaming giant is reportedly developing a "Supremium" plan, which would include high-fidelity audio and cost at least $5 more per month, according to Bloomberg.

In April, Spotify reported a 20% increase in revenue, a 14% rise in premium subscribers, and a record quarterly profit. The company is expected to release its Q2 2024 earnings on July 24.

Our take: Spotify's new "Basic" streaming plan at $10.99 per month is a smart and user-friendly move. It offers all the benefits of the Premium plan but without audiobook listening time, catering to users who mainly want music and podcasts. This plan maintains the familiar $10.99 price amidst rising costs.

This move is part of Spotify’s broader strategy to diversify its subscription offerings. A potential "Supremium" plan with high-fidelity audio, likely costing $5 more per month, shows Spotify’s aim to attract audiophiles who want better sound quality. This tiered approach caters to different market segments, from budget-conscious users to those seeking premium experiences.

Financially, Spotify is strong, with a 20% revenue increase, a 14% rise in premium subscribers, and record quarterly profits. The upcoming Q2 2024 earnings report will likely show how these new subscription tiers affect revenue and subscriber trends.

TikTok Asks Court To Block 'Unprecedented' Nationwide Ban

On Thursday, TikTok requested a federal appellate court to block a new law that could potentially ban the app, arguing that the statute constitutes unconstitutional censorship.

"The act is unprecedented. Never before has Congress expressly singled out and shut down a specific speech forum," TikTok stated in documents filed with the Circuit Court of Appeals for the D.C. Circuit. "Never before has Congress silenced so much speech in a single act," the company added.

TikTok is urging the court to declare the Protecting Americans From Foreign Adversary Controlled Applications Act unconstitutional and to issue an injunction to prevent its enforcement.

Passed earlier this year, the law prohibits web hosting services and app marketplaces from distributing TikTok unless ByteDance divests the app within one year.

Our take: TikTok's move to challenge the Protecting Americans From Foreign Adversary Controlled Applications Act in court raises significant questions about free speech and governmental oversight in the digital age.

At its core, TikTok's argument against the law hinges on the claim that it amounts to unconstitutional censorship. By singling out TikTok and imposing restrictions that could effectively lead to its ban, the law sets a precedent that could have far-reaching implications for online platforms and their ability to operate freely in the United States.

The company's assertion that Congress has never before taken such a direct and sweeping action to curtail speech on a specific platform underscores the gravity of the situation. TikTok, like other social media platforms, has become a vital space for expression, creativity, and communication for millions of users worldwide. Restricting its availability based on geopolitical concerns raises concerns about the government's role in regulating digital spaces and potentially infringing on users' rights to access diverse sources of information and expression.