Regulators Are Fed Up With Food-Delivery Fees

American consumers have been forced to eat food-delivery costs sometimes nearly as big as the meals themselves. Regulators are fed up. In addition to new laws boosting compensation and benefits for delivery drivers, restaurant protections such as pandemic-related commission caps have been proliferating at the city and state levels. Consumer protections could be next. New laws have been costly for delivery players that have been struggling to generate consistent profits lately. On its third-quarter conference call, Uber , which owns and operates Uber Eats, suggested it wouldn’t absorb all of the added costs related to the passage of Proposition 22 in […]

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New California Law Could Spoil Some Growth for Food-Delivery Platforms

Just how valuable has restaurant selection been to delivery platforms’ growth over the past year? We could soon find out. A California bill is set to require third-party delivery platforms to have stated agreements in place with merchants to deliver food orders starting Jan. 1. The bill will effectively end the growth-strategy platforms including DoorDash and Postmates have historically employed to rapidly augment their delivery footprints. Delivery platforms will have to remove so-called unpartnered food merchants, or those with which they don’t have a stated agreement, from their apps in California. Without an agreement, a delivery platform can list a restaurant’s […]

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DoorDash, Grubhub, Others Could Face a Pared-Down Menu

Investors bidding up newly public shares of DoorDash DASH -0.53% and its competitors shouldn’t take for granted the historically fragile relationship between food-delivery platforms and the restaurants they serve. While it is unclear just how sticky eaters’ business will be on delivery apps once the coronavirus pandemic ends, their loyalty could in many cases depend upon whether their favorite restaurants stay around. That is hardly a guarantee. Delivery platforms have been essential to the survival of many restaurants this year, bringing them business even while their dining rooms have remained closed down. In addition to offering grants and relaxed delivery fees […]

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DoorDash Feast Won’t Last Forever

It is a good time for DoorDash to go public. Maybe too good. The Covid-19 pandemic that has curbed indoor dining at restaurants across the globe has been a boon for the food-delivery industry. DoorDash’s filing for an initial public offering Friday morning was only the latest data point. Uber last week reported that bookings for its delivery arm in the third quarter surged 134% from the same period last year—helping to offset a 53% slide in its much larger ride-share business. And even Lyft, which once prided itself for its… Source link

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Lyft Orders Up a Side Dish

Lyft LYFT -0.27% said on Tuesday that it will finally add consumer-facing food-delivery access for its monthly subscribers, but Grubhub GRUB 0.95% is picking up the check. The exclusive partnership with the food-delivery platform, which provides Lyft Pink members with a free Grubhub+ membership, is a necessary move for the ride-share giant and speaks volumes about the strains on both industries during the pandemic. While Lyft didn’t share the economics of the deal structure, Grubhub says it will be covering the delivery fees associated with most food orders from Lyft Pink customers, just as it does for its Grubhub+ members who […]

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