Starbucks and Gopuff partner up to help feed the night-owls

Starbucks has been facing some new challenges especially with their stock prices going down 27% from its highs according to the Nasdaq.

• Starbuck’s solution is to partner with Gopuff (a quick commerce service for snacks) to try to get into the late-night coffee market.

Here’s how it works.

1. Starbucks-trained baristas will prepare your coffee and snacks fresh inside special Gopuff centers (like mini fulfillment centers).

2. These orders will then be delivered to your doorstep in ~30 minutes, all between the hours of 5 pm and 5 am.

This is a pilot program currently running in Philadelphia, with hopes to expand in the future.

Why the late-night focus?

Currently, only 2% of Starbucks sales come from delivery. The partnership with Gopuff wants to change that by targeting people who crave a caffeine fix after the usual business hours (5 pm - 5 am).

It's a different strategy since Starbucks was already a leader in mobile app ordering for food and beverages.

While the mobile app is still popular, with 31% of US transactions happening through it, the company identified areas for improvement, such as long wait times and product unavailability.

PayPal's AI tools are making checkouts way faster (and easier)

Last January, PayPal launched a new set of AI tools meant to make checkout faster, smarter, and more rewarding for both buyers and merchants.

Here’s how some of them work:

Fastlane lets you buy online with just a single tap.

• It eliminates the need to remember usernames, passwords, or even type in your shipping address.

• Simply save your information with Fastlane once, and you're ready for one-click checkouts at any participating store.

• PayPal says early tests show Fastlane can cut checkout times by 40%.

Smart Receipts uses AI to predict what you might want to buy next from a store you just shopped at.

• These receipts will include personalized recommendations alongside cashback offers which you get via email.

• 45% of PayPal users globally open their email receipts daily (meaning millions of people seeing targeted recommendations and deals).

CashPass makes earning cashback simple.

• It gives you access to hundreds of personalized cashback offers from participating brands.

• If you spot a deal you like, just click on it, shop at the store, and pay with PayPal to redeem your reward.

Small businesses on Venmo, PayPal's social payment app, are also getting a boost.

• New Venmo business profiles will include features like subscribe buttons, profile rankings, and the ability to offer promotions to customers, helping their stores stand out

Chowdeck wants to cut food delivery from 1 hour down to 30 minutes in Nigeria

Nigerians love their food. In fact, they spend more of their income on it than people anywhere else in the world – almost 60% according to Picodi.

• This has created opportunities in Nigeria's food delivery market – a market that Statista estimates could be worth $5.7 billion by 2029.

Enter Chowdeck, a Lagos-based startup backed by Y Combinator and armed with a $2.5 million seed investment, Chowdeck is making waves with its focus on super-fast deliveries.

Founded by Femi Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck offers customers the convenience of ordering ready made meals and groceries in an average of just 30 minutes.

• That's a far cry from the usual wait times of 1 or 2 hours that Nigerians were accustomed to, as Aluko himself discovered during a trip to Dubai.

According to TechCrunch, Chowdeck is setting itself apart in their approach to discounts. Unlike some competitors who rely on heavy discounts to attract customers, Chowdeck prioritizes a sustainable business model.

• They minimize discounts and only offer them on behalf of partner restaurants when necessary.

• This gives Chowdeck and the restaurants they work with a healthier business model.

They use geotagging, offer bicycles and motorbikes for delivery vehicles to navigate Nigeria’s infamous traffic and also have rules for both restaurants and riders to keep things running smoothly.

Launched in October 2021, Chowdeck has already attracted over 500,000 users and have a network of more than 3000 riders serving eight Nigerian cities.

With their recent funding, they plan to double down on their success in these cities and expand into even more areas in the country.