business news in context, analysis with attitude

With brief, occasional, italicized and sometimes gratuitous commentary…

•  The Los Angeles Times reports that delivery company GoPuff "is slashing 10% of its global workforce and closing dozens of warehouses, reining in spending amid signs the delivery company expanded too quickly during the pandemic.

"The job reductions will affect about 1,500 staff members, a mix of corporate and warehouse employees in the US …  It’s the second time in four months that the embattled startup has eliminated positions. It cut about 3% of jobs in March and shelved plans to go public.

"Gopuff also intends to shutter 76 warehouses, roughly 12% of its network, across the U.S. to consolidate its footprint in some cities."

According to the story, "The Philadelphia-based startup’s retrenchment also underscores the dramatic shift in sentiment in the rapid-delivery sector, into which investors poured $9.7 billion globally in 2021. With venture capital firms moving away from the 'growth-at-all-costs' model, proving that the economics of instant commerce can work in a post-pandemic world is a looming challenge for Gopuff and its competitors … Through reduced spending, a culling of lower-performing warehouses, and a focus on higher-margin revenue streams such as advertising, Gopuff is aiming to be profitable by 2024."

•  eMarketer reports on a recent State of Personalization report from Twilio saying that "49% of consumers said they would likely become repeat buyers if offered a personalized experience by a retail brand.

"Another 62% said they not only want, but expect personalization, and that a brand that doesn’t offer a personal experience could lose their business. That’s up from 45% in 2021, showing personalization is becoming a key competitive advantage for brands.

80% of business leaders say customers spend 34% more (on average) when offered personalized shopping experiences."

However … the story also says that "while the demand for personalization is clear, the study showed brands are woefully ill-equipped to meet it.

"Only 35% of companies said they felt they achieved omnichannel personalization.  47% of companies offer personalized experiences based on live consumer data, meaning over half are missing out on a significant aspect of personalization."  Only "thirty-seven percent of brands exclusively use first-party data in personalization, up from 31% last year, according to Twilio."