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On-demand grocery startup Food Rocket launches in the Bay Area, goes up against delivery giants

On-demand grocery startups like Gorillas are invading Europe right now, but although on-demand-everything is kinda old-hat in the Bay Area, a new startup thinks it might just be able to do something new.

Food Rocket says it has raised a $2 million investment round from AltaIR Capital, Baring Vostok fund, and the AngelsDeck group of business angels, including Philipp Bashyan, of Russia’s Yonder, who has joined as an investor and advisor.

Yes, admittedly ok this tiny startup is competing with DoorDash, GoPuff, InstaCart and Amazon Fresh. Maybe let’s not into that…

Using the company’s mobile app, users can order fresh groceries, ready-to-eat meals, and household goods that will be delivered within 10-15 minutes, says the startup, which will be servicing SoMa, South Park, Mission Bay, Japantown, Hayes Valley, and others. The company hopes to open 150 ‘dark stores’ on the West Coast as part of its infrastructure.

Vitaly Aleksandrov, CEO, and co-founder of Food Rocket said: “The level of competition in this market in the U.S. is still manageable, which is why we have the opportunity to become leaders in the sphere of fast delivery of basic products and household goods. We aim to replace brick-and-mortar supermarkets and to change consumers’ current habits in regards to grocery shopping.”

What can we say? Good luck?

Instacart speeds up grocery orders with ‘Priority Delivery’ option

Instacart is speeding up grocery delivery. The company announced today it’s debuting a faster delivery service, “Priority Delivery,” in select markets across the U.S. and Canada, with the aim of attracting customers who would have otherwise quickly run to the store for their smaller orders or more urgent demands. At launch, the service will operate in several larger U.S. metros, and will offer deliveries in as fast as 30 minutes, the company says. Instacart is also expanding other speedier delivery services, including 45-minute and 60-minute options, to more cities and retailers in the months to come.

Today, many customers use Instacart to order their larger, weekly or monthly grocery orders, but still run to the store when they need a smaller number of items — like ingredients for tonight’s meal, for example. The new Priority Delivery wants to be an alternative to these shorter trips, effectively becoming the grocery delivery alternative to using a store’s express lane checkout.

In the markets where Priority Delivery is live, it will be indicated by supported retailers in the Instacart app with a lightning bolt icon that notes the expected delivery time, like “30 minutes or less.” Customers will also be given the option to choose Priority during checkout, instead of Standard delivery or a scheduled time, if they prefer.

The company tells us there’s not an item limit nor minimum on these types of orders. However, shorter requests — like milk, a few bags of chips, and a couple of bottles of wine, for instance — will be fulfilled faster than orders where the customer is requesting speciality deli items, a pickup from a bakery, or has a larger basket size.

When the basket size grows larger or the order becomes more complicated, the app will update to display that the 30-minute window is no longer available and display the new delivery time.

Instacart hasn’t yet finalized its pricing for the service, but Priority Delivery will carry an upcharge of some kind. However, the company tells us the fee will be “small” and “incremental,” and will likely be dynamic based on market considerations. It notes that the different delivery options and their associated fees and taxes are displayed during checkout, so there are no surprises.

Initially, Priority Delivery will be available in 5 cities, including Chicago, Los Angeles, Miami, San Diego, San Francisco, and Seattle, across more than 300 store locations, including grocers and speciality retailers. It plans to roll out the service to more markets and retailers over time.

“We know that no two grocery shops are created equal – whether it’s a bulk buy for the week ahead or just a few ingredients for tonight’s dinner – so we’re launching new features that support the many ways people shop for their groceries today,” noted Daniel Danker, Vice President of Product at Instacart, in a statement about the launch. “For many customers, every minute counts when they’re in a pinch and need something in a hurry. With today’s launch of Priority Delivery, we’re redefining the ‘quick run to the store’ and bringing the grocery express lane online for customers,” he added.

In addition, Instacart will expand access to 45-minute and 60-minute delivery options to more cities across the U.S., allowing consumers other options for faster delivery, even if the Priority service is not available.

The move to increase delivery speeds across its footprint could help Instacart better compete with grocery delivery rivals, like Walmart and Amazon’s grocery businesses, as well as Target-owned Shipt.

It also shortly follows Amazon’s announcement last week that it would be shutting down its standalone Prime Now delivery app and website, to instead direct shoppers who want faster delivery on groceries to the Amazon app and website. However, in Amazon’s case, it’s promising 2-hour delivery windows on both Amazon Fresh and Whole Foods; not as low as 30 minutes. Meanwhile, Walmart’s membership-based delivery service, Walmart+, doesn’t currently guarantee same-day delivery even for its paying subscribers, as its time slots are on a first-come, first-serve basis. Among the big names, that leaves Shipt  — which offers same-day delivery, but not necessarily in 30 minutes.

The update may also make Instacart more competitive with other types of fast delivery businesses which don’t don’t serve grocery retailers — like goPuff’s ‘instant needs’ delivery service, Uber Eats Essentials, or DoorDash, which last year expanded to include convenience store items — including things like chips, ice cream, spices, packaged foods, and others that might have otherwise made for a quick store trip.

Instacart’s new service is rolling out now to customers in supported markets.

Figure raises $7.5M to help startup employees better understand their compensation

The topic of compensation has historically been a delicate one that has left many people — especially startup employees — wondering just what drives what can feel like random decisions around pay and equity.

Last June, software engineers (and housemates) Miles Hobby and Geoffrey Tisserand set about trying to solve the problem for companies by developing a data-driven platform that aims to help companies structure their compensation plans and transparently communicate them to candidates.

Now today, the startup behind that platform, Figure, announced it has raised $7.5 million in seed funding led by CRV. Bling Capital, Better Tomorrow Ventures and Garage Capital also participated in the financing, along with angel investors such as AngelList co-founder Naval Ravikant, Jason Calacanis, Reddit CEO Steve Huffman and other executives based in Silicon Valley.

The startup has amassed a client list that includes other startups such as fintechs Brex and NerdWallet and AI-powered fitness company Tempo. 

Put simply, Hobby and Tisserand’s mission is to improve workflows and transparency around pay, particularly equity. The pair had both worked at startups themselves (Uber and Instacart, respectively) and ended up leaving money on the table when they left those companies because no one had properly explained to them what their equity, which changed at every valuation, meant.  

Image Credits: Figure co-founders and co-CEOs Miles Hobby and Geoffrey Tisserand. Image Credits: Figure

So, one of their goals was to create a solution that would provide a user-friendly explanation of what a person’s equity stake really means, from tax implications to whether or not they have to buy the stock and/or hold onto it.

“I’ve gone through the job search process many times before and there’s all these complex legal documents to understand why you’re getting 10,000 stock options, but obviously we knew the vast majority of people have no idea how that works,” Tisserand told TechCrunch. “We saw an opportunity there to help companies actually convey the value to their candidates while also making them aware of the potential risks of owning something that’s so illiquid.”

Image Credits: Figure

Another goal of Figure’s is to help create a more fair and balanced process about decisions around pay and equity so that there’s less inequality out there. Pointedly, it aims to remove some of the biases that exist around those decisions by systematizing the process.

“We saw a void in this kind of context around equity…and knew that there had to be a better way for companies to structure, manage and explain their compensation plans,” Hobby said.

To Hobby and Tisserand, Figure is designed to help stop instances of implicit bias.

“Compensation should be based on the work that you’re doing, and not gender or ethnic background,” Tisserand told TechCrunch. “We’re trying to give that context and remove biases. So, we’re trying to help at two different stages –– to surface inequities that already exist and make sure there are no anomalies, and then to help stop them before they can exist.”

Figure also aims to give companies the tools to educate candidates and employees on their total compensation — including equity, salary, benefits and bonuses — in a “straightforward and user-friendly” way. For example, it can create custom offer letters that interactively detail a candidate’s compensation.

“Our goal is for Figure to become an operating system for compensation, where a company can encode their compensation philosophy into our system, and we help them determine their job architecture, compensation bands and offer numbers while monitoring their compensation health to provide adjustment suggestions when needed,” Hobby said.

Post-hire, Figure’s compensation management system “helps keep everything running smoothly.”

Anna Khan, general partner of enterprise software at CRV, is joining Figure’s board as part of the funding. The decision to back the startup was in part personal, she said.

“I’d been investing in software for eight years and was alarmed that no one was building anything around pay equity when it comes to how we’re paid, why we’re paid what we’re paid and on how to build equity long term,” Khan told TechCrunch. “Unfortunately, discussions around compensation and equity still happen behind closed doors and this extends into workflow around compensation — equally broken — with manual leveling, old data and large pay inequities.”

The company plans to use its new capital to expand its product offerings and scale its organization.