Last Mile Brief 16/03/2023: Shopify, Etsy and other e-commerce players impacted by SVB collapse
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In today's Last Mile Brief, we bring you news regarding the impact of SVB's collapse on e-commerce providers, the competition eyeing UPS' customers, and Zomato pulling the plug on its subsidiary in Jordan.
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Today’s headline story: Shopify, Etsy and other e-commerce players impacted by SVB collapse
According to Reuters, E-commerce companies such as Etsy and Shopify are feeling the pressure after the collapse of Silicon Valley Bank, which specialised in providing banking services to the sector.
The bank’s closure is causing financial difficulties for many of its clients, including e-commerce companies that rely on its loans and other financial services. The bank’s expertise in the industry made it a go-to for start-ups and established businesses alike, leaving many scrambling to find alternative sources of funding.
Etsy says that approximately 0.5% of its sellers, or 2,500 vendors experienced SVB-collapse-related payment delays on Friday.
“We are working to pay these sellers today, and we’ve already started processing payments via another payment partner this morning”, an Etsy spokesperson told Reuters on Monday.
This is particularly problematic for e-commerce companies that rely on external funding to expand and grow their businesses. With many investors now adopting a wait-and-see approach, it may be difficult for e-commerce companies to secure the capital they need to stay afloat.
Despite these challenges, some e-commerce companies are turning to alternative sources of funding, such as crowdfunding or revenue-based financing, while others are focusing on cutting costs and improving their profitability.
That said, the overall outlook for the e-commerce sector remains uncertain, and it may take some time before the industry fully recovers from the impact of SVB’s collapse.
Europe round up
- DHL Supply Chain has ordered Volvo EV trucks to bring net their zero goal closer.
- bpost workers have gone on strike after colleague fired on sick leave.
- Carrefour Polska has expanded its e-commerce deal with Glovo.
- Brook Street Foodservice has joined Country Range buying group.
North America round up
- Rivals are looking to take over UPS customers as fears of strike grow.
- E-grocery orders have fallen below pandemic levels for 1st time.
- Self-driving start-up Gatik has struck a deal with Kroger.
- What impact will peak season and cuts have on FedEx’s third quarter?
- Just Eat Takeaway.com has filed for deregistration from SEC in the USA.
- Seattle-based PCC Community Markets will use DoorDash for delivery.
- Speedbird Aero has entered US in bid to lead drone delivery market.
- Geodis is to lay off 107 Pennsylvania workers.
- LexxPluss has expanded into US with its warehouse robots.
- Shipium and CDL have joined forces to bring fast delivery to East Coast.
- Zipline has unveiled droid to make drone delivery more accurate.
News from the rest of the world
- Zomato has liquidated its subsidiary in Jordan.
- Emirates Post has received the Amazon best carrier award for second year running.
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Photo: Raysonho @ Open Grid Scheduler / Grid Engine, CC0, via Wikimedia Commons