GrubHub

Food delivery companies sue NYC over commission caps

Uber Eats, DoorDash and Grubhub are suing New York City over its commission caps for food delivery apps

DoorDash, Grubhub and Uber Eats provider Uber Technologies are suing New York City over its recent measure that capped the commission that the apps could charge restaurants at 15%, a figure that was previously as high as 30%. It’s the latest legal action in a yearslong clash between America’s three largest food delivery companies and state and local legislators.

The companies are seeking an injunction that would stop New York City from enforcing the new law, as well as unspecified monetary...

https://www.freightwaves.com/news/food-delivery-companies-sue-nyc-over-commission-caps

Food delivery companies in NYC face permanent commission cap

DoorDash Grubhub Uber Eats and others face commission cap on delivery services in New York City

The gig economy is slowly but steadily becoming a nationwide battleground. Uber and Lyft, two of the industry’s power players, made headlines last month when a number of their drivers across the country took to the streets in protest, bringing national attention to what the protesters consider low wages and lack of protections for the workers. 

After the rideshare companies suffered a blow on the West Coast last week with the striking down of California’s Proposition 22 on worker classification,...

https://www.freightwaves.com/news/food-delivery-companies-in-nyc-face-permanent-commission-cap

Delivery-only concepts are the new food frontier

ghost kitchens here to stay delivery only virtual restaurant dining concept brand uber eats doordash postmates grubhub

In 2004 in the city of Chicago, two hungry web developers were working on the next multibillion dollar concept. Matt Maloney and Mike Evans are better known today as the founders of Grubhub, the app that got the ball rolling for the world of online food delivery platforms. A decade later, Doordash and Uber Eats had entered the market and together they’ve turned it into a $10 billion business.

Now we’re seeing the next stage in the evolution of restaurant e-commerce. Not too long ago, the idea of...

https://www.freightwaves.com/news/delivery-only-concepts-are-the-new-food-frontier

Do gig workers want to be employees? It depends who you ask

In the last few weeks, there have been surveys that suggest that rideshare drivers and other independent contractors would rather have full-time employment – except for those who don’t.

The employment status of these workers has been much debated and will continue to serve as the centerpiece of future legislation at the state level and in Washington. How a society and its political leaders can reach a conclusion that satisfies these workers and the companies that pay them may be one of the most...

https://www.freightwaves.com/news/do-gig-workers-want-to-be-employees-it-depends-who-you-ask

Mizuho: Little chance of federal gig worker regulation

While Uber (NYSE: UBER), Lyft (NASDAQ: LYFT), DoorDash (NYSE: DASH) and Grubhub (NYSE: GRUB) have significant exposure to potentially dramatic regulatory changes to the employment classification of the drivers critical to their operations, Mizuho Securities USA is not ready to issue a sell rating on the companies just yet.

In fact, the investment house, part of Japan-based Mizuho Securities, a wholly owned subsidiary of Mizuho Financial Group, believes there is upside to Uber and Dash and little...

https://www.freightwaves.com/news/mizuho-little-chance-of-federal-gig-worker-regulation

Oklahoma law exempts delivery services from trucking regulations

An exemption for local delivery companies – including food delivery platforms and Amazon Flex drivers – from regulations generally used to regulate trucking companies in the state of Oklahoma has been signed into law.

The bill, the Oklahoma Courier Application Services Act, was proposed by Republican Sen. Micheal Bergstrom. It passed both chambers in Oklahoma and was signed by Gov. Kevin Still earlier this month. The law goes into effect Nov. 1.

“Delivery services like Uber Eats, DoorDash,...

https://www.freightwaves.com/news/oklahoma-law-exempts-delivery-services-from-trucking-regulations

Grubhub sees strong revenue growth, but reports surprising quarterly loss

Grub posts revenue increase, quarterly loss

Grubhub (NYSE: GRUB) posted 52% revenue growth in Q1 2021 on revenues of $551 million compared to $363 million in Q1 2020, it said on Wednesday after market close.

Gross food sales grew 60% year-over-year to $2.6 billion, up from $1.6 billion in the first quarter of 2020, and the company said it saw high-single-digit year-over-year growth in orders.

“We are proud of our continued role in helping restaurants grow their businesses and supporting the communities where they operate. Our team...

https://www.freightwaves.com/news/grubhub-sees-strong-revenue-growth-but-reports-surprising-quarterly-loss

DoorDash: Added fees are necessary to ensure service, pay Dashers

DoorDash adds new fees as municipalities cap charges

DoorDash (NYSE: DASH) has been accused of tacking on additional fees to service bills in some communities after at least 68 cities and towns have enacted laws that capped what the delivery service could charge local restaurants.

Those fees, DoorDash said, are necessary to ensure continued service for restaurants and payment for Dashers.

According to an NBC News report, DoorDash responded by adding new fees in 57 of the communities where the laws were passed. The NBC News report accelerated a...

https://s29755.pcdn.co/news/doordash-added-fees-are-necessary-to-ensure-service-pay-dashers

Instacart may delay IPO until late 2021

After reportedly being prepped for an initial public offering (IPO) early in 2021, Instacart may be rethinking that plan.

According to a Thursday afternoon report by The Information, company executives are worried that buyers of its stock could be worried about the company’s fortunes once the pandemic is over and economies fully reopen. Because of this, the report said Instacart executives are now mulling over a late-2021 IPO.

“That will make it easier for investors to gauge how fast Instacart’s...

https://s29755.pcdn.co/news/instacart-may-delay-ipo-until-late-2021

Instacart may say no to an IPO

Instacart may skip IPO and sell direct to public

Grocery delivery app Instacart, which was expected to go public early in 2021 through an initial public offering (IPO), is now mulling alternative options, including a direct listing, according to a Reuters report.

Reuters said bankers that have worked Instacart’s potential listing believe it could be worth at least $50 billion. On Tuesday, Instacart announced the closing of a $265 million venture capital fundraise that valued the company at $39 billion. The round involved existing investors...

https://s29755.pcdn.co/news/instacart-may-say-no-to-an-ipo

+ More