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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Uber Pays Up to Take Back Seat on Driverless Cars

In a sign of investors’ meager appetite for driverless-car ventures, Uber Technologies Inc. isn’t so much selling its ill-fated project as paying a rival to take it on. The ride-hailing giant said late Monday that its autonomous-driving unit ATG would be acquired by Aurora Innovation Inc., a startup with about half the staff. But this is no usual acquisition: Aurora isn’t handing over cash; in fact, it gets $400 million of extra capital from Uber as part of the deal. For the ride-hailing giant, the appeal of the transaction is that it takes driverless cars off its balance sheet. It owned […]

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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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Gig Workers Could Be Paid Partially in Stock Under SEC Proposal

WASHINGTON—Privately held online platform companies such as DoorDash and UrbanSitter could pay their workers partially in stock under a rule proposed Tuesday by the Securities and Exchange Commission. So-called gig-economy workers currently don’t qualify for SEC exemptions that allow private firms to offer equity compensation to their employees and contractors. Firms including Uber Technologies Inc.—before it went public—have lobbied the regulator in recent years to allow them to do so. The… 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 and Uber Investors Head for Speed Trap

Investors are valuing ride-hailing stocks like shiny new cars. Both companies have been in a nasty accident, though. Shares of Uber Technologies and Lyft are up 217% and 125%, respectively, from their 2020 lows. Those gains accelerated following Proposition 22’s passage in California last week and this week’s promising vaccine news, but investors are paying up ahead of time for a recovery that could be maddeningly slow. On… Source link

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Electronic Arts, Peloton, T-Mobile: What to Watch When the Stock Market Opens Today

Here’s what we are watching as markets kick into gear Friday. —U.S. stock futures edged lower Friday, interrupting the sharpest weekly rally since April as investors focused on the still-undecided presidential election and surging Covid cases. Futures tied to the S&P 500 fell 0.2%. Read our full market wrap here. —What’s coming up. All eyes are on the presidential race as Joe Biden took a tentative lead in the vote count in Georgia and Pennsylvania early Friday. —Jobs Numbers. The U.S. added 638,000 jobs in October and the jobless rate fell to 6.9%, the Labor Department said Friday, a sign of labor market healing amid […]

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