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 …

Grubhub promotes CFO Adam DeWitt to CEO

Dive Brief: Following the Tuesday closure of Just Eat Takeaway.com’s acquisition of Grubhub, Matt Maloney, Grubhub founder and CEO, has become a member of JET Management Board while Grubhub President and CFO Adam DeWitt has been promoted to CEO, according to a press release.  Maloney will be one of four executives running the global business, with …

Five Digitally Disrupted Industries to Study as Restaurants Make the Shift

The long-awaited joy of a bustling dining room has finally returned. Yet as the industry hypothesizes about the long-term impact of digital with the return to in-person dining, billions of dollars continue to change hands in a way that will determine the fate of restaurant brand equity for years to come — and it’s happening outside of …

Profits May Not Be So Seamless for DoorDash, Uber Eats

They say those who don’t learn from history are doomed to repeat it. But in food delivery, DoorDash and Uber Eats are trying to avoid repetition. Last month, Grubhub Chief Executive Matt Maloney called food delivery a “crummy business” in an interview with The Wall Street Journal, something he has been quoted as saying in …

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 …

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 …

Uber Narrows Loss on 28% Delivery Revenue Surge

After losing $968 million last quarter, Uber delivered improved first quarter earnings with a net loss of $108 million that was, as CNBC put it, a “tremendous improvement” from the fourth quarter of 2020 with delivery revenue up 28 percent over the Q4 2020 and 230 percent year over year. As the world begins moving …

Olo Beats Expectations in First Earnings Report

Olo continued its post-IPO victory lap after posting its first quarterly earnings results as a public company. The delivery integration and logistics company for enterprise restaurants had a lot of great highlights from the first quarter of 2021. Revenues were up 125 percent year-over-year to $36.1 million. Gross profit was up 150 percent, suggesting the …

Why restaurants need to be digital now

To thrive in an increasingly online marketplace, restaurants need to invest in technology that manages the diner relationship and delivery automation, says Hypertrack’s founder and CEO. The following is a guest post by Kashyap Deorah, founder and CEO of Hypertrack, a live location platform for retail, e-commerce and restaurants. Deorah also sold JustChalo to OpenTable.  …