Shoptalk 2018

Shoptalk is billed as the world’s largest conference devoted to retail and e-commerce innovation. Conference organizers expect more than 7,500 attendees at the event this year, which runs March 18–21 in Las Vegas. Coresight Research is again partnering with Shoptalk to host the conference’s annual startup pitch competition. On March 20, Coresight Research CEO and Founder Deborah Weinswig will also participate in a Shoptalk session entitled “Overview of Retail and Ecommerce Innovation in China.” Zia Daniell Wigder, Chief Global Content Officer of Shoptalk, will interview Weinswig and Hans Tung, Managing Partner of GGV Capital, on topics that include technology and business model advancements in areas such as checkout, payments, delivery, logistics, the IoT and robotics.

Startup Competition

On March 18, Weinswig will emcee a startup pitch competition between 15 early-stage companies. Each company will present its business to a panel of judges from the investment community and to the audience. Two winners will be announced, one chosen by the panel of judges and one by audience vote, and each winner will be awarded $25,000. Shoptalk curated the participating startups based on their solutions to some of the most pressing challenges facing retailers today. As we highlight in our 18 Retail Trends for ’18: Preparing for Another Year of Change report, the retail industry continues to undergo transformation, characterized by five key factors that are either driven by or affecting consumers and retailers:

1. Consumers continue to switch from conventional retail formats to new, alternative formats and
2. Shoppers value life-improving services from retailers and technology providers.
3. Brands, retailers and technology firms are offering new types of interactions, rewards and experiences.
4. Industry changes are compelling closer collaboration among retailers, technology giants (including Amazon), logistics technology vendors and social media influencers.
5. Retailers are leveraging technologies as diverse as blockchain and 3D printing to make their supply chains smarter and fitter in an increasingly competitive market.

In response to these trends and opportunities, retailers in all channels are changing to accommodate shoppers’ shifting preferences. Below, we profile Flashfood, one of the companies participating in the startup pitch competition at Shoptalk 2018.

Flashfood

Company Description

Flashfood is an online marketplace where grocery stores and food manufacturers can resell their surplus food directly to consumers at discounted prices. Grocers add a picture and description of the available food to the marketplace site, set a price and include a pickup time window. Shoppers browse deals and pay through the Flashfood app and then pick up their food from dedicated Flashfood refrigerators in stores the same day. The startup seeks to make food more affordable for consumers and help grocers and manufacturers reduce their carbon footprint by reducing food waste, while also creating a new revenue stream for these companies.

Market Overview

Global sales of food and alcohol through e-commerce platforms grew by 30% in the 12 months ended March 2017, accounting for 4.6% of all fast-moving consumer good (FMCG) sales, according to a recent report from Kantar Worldpanel. The firm predicts that online FMCG sales will reach $170 billion by 2025 and hold a 10% market share. While estimates of e-commerce’s share of total grocery sales vary, grocery is likely to be the next major retail sector to be disrupted by e-commerce.

What Problem Is the Company Solving?

One-third of the world’s food—equivalent to nearly 1.3 billion tons—ends up in a landfill every year, according to the Food and Agriculture Organization of the United Nations. Meanwhile, an estimated one in eight Americans struggled with food insecurity (lack of consistent access to enough food) in 2016, according to the US Department of Agriculture.

Headquarters

Toronto, Ontario, Canada

Funding Stage

Seed($0.5–$4 million)

Business Model

Grocers pay a transaction fee based on what items are sold through the Flashfood platform. Manufacturers sell their surplus food to Flashfood at a discount.

Competitive Landscape

Flashfood defines its two main competitors as Imperfect Produce and FoodMaven.

Management Team

Josh Domingues, Founder and CEO, was formerly an investment advisor and management consultant. CTO Kris Ryken has experience working on corporate innovation strategy and previously cofounded and served as VP of Digital Innovation for digital marketing company Salt & Pepper, which was acquired in 2014.

Company Outlook

Flashfood is working with big food manufacturers and grocers to help all parties reduce their food waste while making food more affordable for consumers.