What is the strategy behind $6.5B investment into 15 min delivery startups?

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1/ What’s the strategy behind 15 minute grocery delivery app startups?

About 6.5B venture money went into 15min delivery apps between 2020 & 2021. Assuming this is not a consensus hallucination of investors and there is an actual strategy in funding 15 min grocery delivery apps, what could it be?

Here is my thesis - the only reason why you would invest in a 15 minute grocery delivery app is you expect it to be the go-to-market strategy to become a top 3 food/grocery delivery startup in that market.

Now it is an especially dumb idea if the delivery market has too many players already but if you can pull it off you have an upside of becoming the next DoorDash of that market.

Take the example of Zepto, the Indian 15 min grocery delivery company. There are two major companies in India that dominate food delivery scene, Zomato & Swiggy. By launching Zepto’s 15 min business Zepto inadvertently forced Swiggy & Zomato to try out 15 min delivery at least in certain categories. By making a splash about 15 mins delivery Zepto grabbed mindshare among the customers which it can successfully leverage to become a major food/grocery delivery company, though this is not a guarantee.

But we should not confuse that the momentary mindshare grab by 15 min delivery companies would result in a profitable business. It will not even in the most population dense cities in the world. It would be at best serve as a go-to-market strategy to become a full fledged food/grocery delivery company in a very large market.

Every global 15 min delivery will die as a 15 min delivery company worse case or in the best case will evolve in to a full fledge food/grocery delivery company or find another opportunity ancillary to it.

2/ Curiosity Conversations with Brian Grazer

What’s common between all these movies & TV Series?

• Apollo 13

• A beautiful Mind

• The DaVinci Code

• 24 (Tv Series)

• Arrested Development (Tv Series)

All of the above movies are directed by Ron Howard, but there is another common thing. They are all produced by Brian Grazer, long time creative partner of Ron Howard.

Brain Grazer for last 35 years did one thing every week consistently, he actively sought out people he was curious about and met with them. He went to extra ordinary lengths to have these conversations. He went on to create 212 movies & tv shows, nominated for 50 awards (Oscars & Emmy’s) & won 1 Oscar.

One of the most fascinating careers I have encountered in the recent times.

3/ What to consume?

As I keep saying, you are what you consume. Here a conversation I suggest you to spend time on this week. Graham Walker talk about doing asymmetric things in life and has put together as a last class to Harvard’s graduating MBA class. I guarantee you, you will thank me after listening to this conversation.