Instant grocery delivery Gopuff's European business will make $100M in revenue this year and has grown 3x quicker than its initial projections, according to the Information. However, the company is struggling to break even due to high labor costs. In London, its average order value (including discounts) is $20, but the company must raise this to $34 to break even. More: - Currently in Europe, Gopuff compensates workers for shifts worked, even if they weren't actively delivering orders.
- Gopuff considered adopting its U.S. model, where workers' compensation depends on how many hours they work or the number of deliveries they make, to lower costs.
- However, this plan was scrapped due to concerns it would trigger backlash from regulators and employees.
- Gopuff's revenue surpassed $2B last year, and it posted a $500M EBITDA loss, according to Axios.
- In the past year, it brought on nine former Amazon executives to help it expand into new European markets, including Italy and the Netherlands.
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 Shopify CEO Tobi Lütke Shopify ended its partnership with multiple warehouse and fulfillment partners, according to Business Insider. The move will reduce the capacity of its Shopify Fulfillment Network (SFN) by 50% in the short term. Insider notes Shopify could begin operating its own warehouses and purchase third-party logistics firms as part of efforts to take greater control of its fulfillment network. More: - Shopify launched SFN in 2019 to offer merchants quicker shipping times at a lower cost.
- The company vowed to invest $1B over five years to compete against Amazon's logistics network.
- It bought fulfillment automation startup 6 River Systems for $450M in 2019.
- As of Aug. 2021, Amazon delivered 66% of its own packages, up from 58% in 2019.
- Last November, Amazon executive Dave Clark said it would surpass UPS and FedEx to become the biggest delivery service in the U.S. this year.
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Private equity firm Sycamore offered to acquire Kohl's for at least $65 per share, a 39% premium from its Friday closing price of $46.84. Last week, Kohl's received a takeover offer of $64 per share from Acacia Research, which is controlled by activist investment firm Starboard Value. More: - Kohl's said its board of directors is evaluating the offers.
- The retailer has a market cap of $6.5B, and its shares are up 37.1% in the past year.
- CNBC says Acacia would raise funds by selling the retailer's real estate holdings, a move Kohl's has historically opposed.
- Kohl's revenue increased by 15.5% YoY to $4.6B.
- It recorded a net income of $243M, an improvement from the $12M net loss it posted a year ago.
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 An Amazon warehouse in Darlington, England, has helped create 1,300 new jobs and provide an "economic boost," according to the WSJ. Amazon opened the warehouse in April 2020, and workers receive an hourly minimum wage of $13.25. The current minimum wage for anyone above 23 is $12. Workers also received health insurance and over $10,000 worth of education support. More: - Darlington is located in Northern England and has a population of 100,000.
- Amazon's U.K. sales increased by 50% YoY in 2020, more than the 39% growth it experienced in the U.S.
- Local lawmakers, who were worried that the warehouse would hurt small businesses, have acknowledged that it has benefited the town.
- Small businesses have said they're having trouble hiring since they can't match Amazon's wages and benefits.
- Its annual tax bill in Darlington exceeds $1.6M.
- Amazon has over 55,000 workers in the U.K.
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Mexican grocery delivery startup Calii raised $22.5M at an undisclosed valuation. Cali's product offerings cover over 5,000 items, including produce and seafood. They're delivered from its micro-fulfillment centers, which the company says cuts environmental waste by 3x. It currently fulfills over 2,000 orders daily and aims to boost its capacity to 10,000. More: - Calii has raised $32.9M since its inception in 2019, according to Crunchbase.
- The funds will be used to expand into 14 unnamed Latin American cities over the next six months.
- The Latin American groceries and food delivery market is valued at $1T.
- Calii's revenue has increased by 3x in the past year to an undisclosed amount.
- It will launch new product offerings, including a buy now, pay later service.
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The National Labor Relations Board will file a complaint against Amazon, accusing it of illegally firing Daequan Smith, a warehouse worker who was involved in unification efforts. Smith was part of the Amazon Labor Union (ALU), a coalition of warehouse workers seeking higher wages and more paid time off. More: - Smith worked at an Amazon warehouse in Staten Island, New York.
- In December, workers at four Amazon warehouses in Staten Island filed a petition to hold a union election, with a hearing set for February.
- American companies can't punish workers that seek to form unions.
- While the NLRB can investigate alleged violations, it can't issue penalties.
- Amazon has until March 22 to inform employees that it won't prevent them from organizing as part of a settlement it struck with the NLRB last month.
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 |  | Jigney Pathak is a Business Researcher at Inside who loves technology, finance & sports. He has a Bachelor of Business Administration with a finance specialization & has previously worked at Salesforce. |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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