Courtesy of Shipt

On-demand delivery is a tough business with thin margins, but entrepreneurs and investors continue to pour resources into it. Shipt, an on-demand grocery delivery startup originally from Alabama, has raised $40 million in new funding from Greycroft Partners, e.ventures, and Harbert Venture Partners. It plans to be in a total of 100 U.S. markets within the next year.

Competition: Shipt founder and CEO Bill Smith says he's not worried about rival Instacart, even though it has raised hundreds of millions of dollars. For one, most of the 50 markets where Shipt operates are in the South and the Midwest—only partially overlapping with Instacart. It also requires that customers pay an annual membership fee ($99), something Instacart offers as an option for more frequent customers. Shipt's average customer is a 35-year-old mom with two kids who orders every 10 days—another reason it's currently staying away from markets like San Francisco where users are mostly single professionals.

CPG craze: One way Shipt hopes to make money is by charging fees to consumer packaged goods brands in exchange for promoting their products in its app. The approach also is used by other delivery services like Instacart, Postmates, and Rappi (in Latin America).

Go deeper

Big Pharma launches $1B venture to incentivize new antibiotics

Illustration: Lazaro Gamio/Axios

A group of large drug companies launched a $1 billion AMR Action Fund Thursday in collaboration with policymakers, philanthropists and development banks to push the development of two to four new antibiotics by 2030.

Why it matters: Antimicrobial resistance (AMR) is a growing problem — possibly killing up to 20 million people annually by 2050 — but a severe lack of R&D market incentives has hampered efforts to develop a robust antibiotic pipeline to address the issue.

Updated 2 mins ago - Politics & Policy

Inside Geoffrey Berman's closed-door testimony

Berman arrives on Capitol Hill Thursday. Photo: Saul Loeb/AFP via Getty Images

Geoffrey Berman, the former top federal prosecutor in Manhattan, was expected to say in closed-door testimony today that Attorney General Bill Barr repeatedly urged him to take another job, warned him that getting fired would not be good for his resume or job prospects and steered him toward a high-level Justice Department post in DC.

Driving the news: Axios has obtained a copy of Berman's opening statement for his closed-door hearing before the House Judiciary Committee.

11 mins ago - Health

Schools confront broadband access crisis

Illustration: Sarah Grillo/Axios

School districts are taking it upon themselves to help families get connected to the internet as they face down a long future of virtual learning.

Why it matters: In the COVID-19 era of education, broadband is an essential service that families need to stay connected — and that school systems require to equitably educate children in their districts.