Philly’s Delivery Guys is a start-up ready to compete with food delivery giants such as Grubhub, UberEats. Here’s how it will do it.

Richard Hernández bought Franklinville’s Sabor Rico Bakery (formerly known as A&Y) in December 2019, three months before the pandemic hit. He didn’t even get the chance to change the store’s sign before he found himself struggling to keep his small business open. While managing the store, the Puerto Rican business owner supervised the quality of …

Uber Eats driver shortage leads to widespread food waste and staff abuse

Restaurateur Jason Chang is caught between a tech giant and dissatisfied customers and his staff are copping abuse as a result. The owner of Calia at Melbourne Emporium says “pandemic rage” is exacerbated by online platforms and causing hungry customers to vent their frustrations while oblivious to the human impact. In recent months, a driver shortage …

Driver-Owned Uber Alternative Looks to Crowdfund $1 Million

A worker-owned cooperative that competes with Uber in New York is hoping to turn grassroots buzz into business growth by raising more than $1 million from investors, drivers and potential passengers. While most startups trade equity for venture capital funding, The Drivers Cooperative is issuing debt to lenders who would get a limited share of future revenue while keeping company ownership in the hands …

Delivery Co-ops Provide an Answer to High Fees and Low Wages

During the pandemic, homebound Americans more than doubled their food delivery orders, largely through third-party apps like Seamless and UberEats. COVID-19 lockdowns may have hastened the apps’ growth, but economists have tracked a dramatic uptick in the use of such platforms over the past five years. But the convenience of these apps masks an inherently predatory nature, with crippling …

With Delivery Workers, Who’s Really in Charge?

Third-party delivery apps depend on an entire gig workforce of drivers, bicyclists, and motorcyclists — the people on the go, handing you your food at your doorstep. More than one-third of U.S. workers are a part of the gig economy. The major delivery apps often describe that workforce, their drivers and delivery workers, as partners. …

Uber Eats Has a Crap Business Model, Part One

There has been a lot written lately about the difficulty third-party delivery companies such as Uber Eats and DoorDash have had making a profit. Any number of analysts have pointed out that profits were elusive (1, 2) for these companies even during the pandemic-driven surge in business, and will presumably be even harder to achieve now that …

Flat-fee dining delivery service enters Oak Park market

While restaurants are opening-up and dine in business is on the rise, the pandemic has made ordering dinner a habit for many people and delivery demand remains high in the food industry. And that change in customer behavior is likely to keep restaurants searching for affordable delivery options in the face of DoorDash and Grubhub’s …

DoorDash boosts revenue nearly 200% despite driver shortage

Dive Brief: During its first full quarter as a public company, DoorDash grew revenue by 198% to $1.1 billion, orders rose 219% to 329 million and marketplace gross order volume increased 222% to $9.9 billion year over year, according to a shareholder letter detailing the company’s Q1 earnings. Net income, however, was at a loss of …

Where have all the Uber drivers gone?

When the pandemic pushed him to quit driving for Uber, Steve Gregg didn’t know he might be done with the ride-hailing apps for good. But he was exhausted from the daily stress of driving, after taking passengers on more than 15,000 trips over three years. And he was frustrated over being nickel-and-dimed, seeing his wages steadily decrease. The added …

RECORD-SETTING QUARTER BRINGS GRUBHUB NO CLOSER TO PROFITABILITY

Grubhub set records across all three of its key business metrics in the first quarter, reflecting continued demand for delivery, but the milestones brought it no closer to turning a profit. Both gross food sales and daily average orders picked up again after slowing in the previous quarter. Gross food sales were up 60% year over year, to $2.6 billion, …