GrubHub, DoorDash Services Take Off During Pandemic: A Look at the Patents on Food Delivery Inventions

One of the sectors of the U.S. economy that has seemingly thrived through the COVID-19 pandemic—indeed, because of the pandemic—has been food delivery services. Buoyed by successful firms like GrubHub and DoorDash, food delivery apps have benefitted from increased demand due to social distancing and shelter-in-place orders during the pandemic. The top four delivery apps saw a …

Restaurants Are ‘Always Blamed’ When It Comes to Bad Delivery. Here’s How Tech Can Help

Who is responsible when something goes wrong with delivery? A succinct-yet-apt answer to that question recently came from fast casual chain Wow Bao’s President and CEO Geoff Alexander, who spoke at The Spoon’s Restaurant Tech Summit this week: “As the restaurant brand, you are always blamed.” If you’ve ordered via third-party delivery with any frequency, you’ve likely …

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 …

Uber to buy a company that makes software to manage shipping for $2.25 billion

Uber Freight, the rideshare company’s trucking division, said Thursday it’s acquiring Transplace in a deal that values the transportation logistics company at $2.25 billion. Uber Freight will acquire Transplace from TPG Capital, the private equity platform of alternative asset firm TPG. The deal consists of up to $750 million in common stock of Uber and …

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 …

Delivery service Gopuff acquires rideOS for $115 million

On-demand goods, food and alcohol delivery service Gopuff has acquired fleet management platform rideOS for $115 million, sources familiar with the deal say. This acquisition comes just a few months after the Philadelphia-based startup announced a $1.15 billion funding round at a $8.9 billion valuation, up from $3.9 billion in October. Last fall, the company also raised $380 …

Delivery Apps like Grubhub and DoorDash charge restaurants huge commission fees. Are delivery co-ops the solution?

The Grubhub model is here to stay. But community-based delivery services could be lifelines for small restaurants battling huge commission fees. 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 …

DoorDash and Uber Eats Are Hot. They’re Still Not Making Money.

Food-delivery companies did record-breaking business during the pandemic, as millions of homebound Americans embraced the idea of ordering dinner via smartphone apps. Their valuations skyrocketed. They acquired reams of data that helped increase their efficiency. There was just one problem: Even at the height of their success, they weren’t making any money. Now, as the …

Delivery Platform DC To-GoGo Might Be Taking A Break, But Its Founders Are Looking To Expand

Less than a year since launching their takeout and delivery platform, the team behind DC To-GoGo is taking a break from the service.  Launched in May 2020 by the team behind Ivy & Coney – Chris Powers, Adam Fry, and Josh Saltzman – the platform was a local alternative to major delivery platforms, like Grubhub and UberEats, …

TECH ROUNDUP: NOT ENOUGH DELIVERY DRIVERS

As restaurants struggle to find enough workers, food delivery companies are having hiring issues of their own. Growing demand for delivery over the past year combined with renewed hiring in other sectors is putting pressure on companies such as Uber Eats to keep enough people driving. “As more people are vaccinated, demand from customers has increased. We’re working …