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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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 Loyalty Program Should Deliver

Consumers are eating up DoorDash’s DashPass while seemingly nibbling at offers from rivals Grubhub and Uber Eats by comparison. That could prove to be the secret sauce for DoorDash once a pandemic-driven wave of business shrinks. Other food-delivery subscriptions cost about the same and offer similar benefits. They are a good value for frequent users: A $9.99 subscription pays for itself if ordering food delivery just a few times every month. So, in a year in which demand for food delivery has soared, why aren’t all subscription… Source link

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DoorDash Loves the ’Burbs as Much as You Do

Investors asking themselves why DoorDash was able to turn a profit in the pandemic, while some of the food-delivery company’s biggest competitors couldn’t, should take a good look at the view from their suburban office windows. Observers have been trying to parse the much-discussed unit economics graphic included in DoorDash’s initial public offering filing last Friday, as if it held a secret key. But DoorDash’s pandemic success might have less to do with how they make money off each order and more to do with exactly where… Source link

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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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