For Restaurants, Delivery Is a Catch-22

One out of ten people reading this article will have food delivered to their home this month via their smartphone. Data from eMarketer.com shows 38 million people in the US now use food delivery apps at least once a month, up 21% from last year. Private company DoorDash is the largest player in the delivery space, […]

DoorDash Won Food Delivery by Seizing the Suburbs and $2 Billion

(Bloomberg) — There aren’t many jobs in Davidson, North Carolina, that offer the flexibility and decent pay that Alfonso Auz was looking for. He tried a bunch of gigs, including driving for Uber, before eventually settling on DoorDash Inc. Auz, 47, usually makes at least $150 a day delivering food from restaurants in his hometown, without having to […]

The Big Flaw in Grubhub’s Business Model Just Became Wildly Obvious

Restaurant delivery is only getting more and more popular among customers, which ought to be great news for Grubhub (NYSE:GRUB). But the service provider’s third-quarter numbers were plain awful, and its guidance was ugly, too. In this segment of the Oct. 29 MarketFoolery podcast, host Chris Hill and Motley Fool Asset Management’s Bill Barker dig into precisely where it’s […]

Company that bought Bite Squad signals it paid way too much

The company that in January bought Bite Squad, the Minneapolis food-delivery firm, on Thursday wrote off much of that deal. It had been the most valuable acquisition involving a Twin Cities tech startup this decade. Waitr Holdings Inc. disclosed a $192 million write-off as it announced quarterly results Thursday, contributing to a $220 million loss […]

Louisiana-based food delivery company Waitr goes deeper into the red in third quarter

Louisiana-based food delivery company Waitr will cease operations in 38 “clearly unprofitable” markets over the coming months as the company’s leadership tries to find a “trajectory for a sustainable business,” CEO Adam Price told investors Thursday. The third quarter of 2019 — Price’s first quarter as CEO after founder Chris Meaux resigned and took a position on […]

Waitr reports net loss of $220M; company looks to stay independent

Waitr Holdings Inc., the Lake Charles-based mobile app food delivery business, went deeper into the red as the company reported a net loss of $220.1 million, or $2.89 per share, as of third quarter. By comparison, Waitr lost $6.5 million during third quarter 2018. About $192.1 million of the losses stemmed from goodwill and intangible […]

Uber Eats readies ad sales for restaurants

Ads are coming to Uber Eats. TechCrunch reported that Uber is seeking an executive to help develop and run a new ads business. Under pressure. This makes sense for several reasons. Restaurants have been conditioned by other ad platforms, including Google and Yelp, to pay for placement and exposure. And Uber is under significant pressure from investors to […]

Postmates CEO: Rival GrubHub’s debacle is not a warning sign on overall food delivery business

GrubHub’s terrible earnings and more than 40% stock plunge last week is not indicative of the potential of the broader food delivery business, says Postmates co-founder Bastian Lehmann. Lehmann says the GrubHub catastrophe is a GrubHub problem. Taking a veiled swiped at his rival, Lehmann says millennials who like Postmates may be turned off by companies that cater […]

DoorDash Completes Caviar Transaction, Has Consolidation Begun?

The first day of November marked the completion of DoorDash’s acquisition of Caviar, the largest in the spate of DoorDash acquisitions the company took on last year. DoorDash and Square, which previously owned Caviar, first announced the $410 million deal in August of 2019. In all, it looks like a good acquisition for the company […]

Food delivery service Waitr calling it quits in Lincoln

Restaurant delivery app Waitr has found the competition in Lincoln a little too steep. The company recently told its local drivers that it will be pulling out of the market Dec. 5. Dean Turcol, Waitr’s media relations director, confirmed that news Thursday to the Journal Star. “In order to position ourselves for the future, we’ve […]