Santa Monica caps food delivery app fees for restaurants

Santa Monica will join several cities across the country in limiting the fees that food delivery apps can charge restaurants. Restaurants have been serving takeout and delivery exclusively for the last two months with the help of third-party delivery apps, which charge a sizable commission on each order. Many restaurants that grudgingly accepted a 20% […]

Silicon Valley Invents “The Free Lunch” – The Doordash-Pizza Arbitrage

Authored by Ranjan Roy via The Margins substack, If capitalism is driven by a search for profit, the food delivery business confuses the hell out of me. Every platform loses money. Restaurants feel like they’re getting screwed. Delivery drivers are poster children for gig economy problems. Customers get annoyed about delivery fees. Isn’t business supposed to […]

Uber Surges After Announcing Another 3,000 Job Cuts, Bringing Total Layoffs To A Quarter Of Its Workforce

Last week, Wall Street was shocked following a report that Uber was seeking to acquire its biggest competitor in the food delivery space, Grubhub, in hopes of creating a food-delivery giant. The news was good enough to send the stock price surging however as it suggested Uber saw a light at the end of the coronavirus pandemic […]

Food delivery with third-party apps like Grubhub and Uber Eats is booming, but no one’s making money. Here’s why their business is broken.

New York just passed a temporary 15% cap on third-party delivery commissions and a limit of 5% on marketing contributions and other related fees. And Uber Eats, which just made a bid to buy Grubhub, is locked in a bitter feud with Jersey City Mayor Steve Fulop. Food delivery is booming during the pandemic, and […]

Evading Grubhub

“Support Local Businesses” is a motto repeated in signage and online posts by Evanston locals. Delivery orders are vital to restaurants attempting to stay in business while the Illinois stay-at-home order is in effect. For customers ordering food, third-party delivery apps are convenient and popular. But with their convenience comes controversy. Grubhub, a Chicago-based company […]

To save their local small businesses, people are cutting out delivery apps such as Uber, Grubhub, DoorDash and Lyft

SAN FRANCISCO — Every morning, Turtle Brennen, a research engineer who lives here in the Mission District, buys a coffee from Ritual Roasters, a locally based coffee chain. Since the stay-at-home order, he’s also been getting a pastry so he can support the bakeries it works with. He calls restaurants and picks up his food […]

Uber Reportedly Angles to Gobble Up Grubhub

After hiring an advisor and considering a sale of the company back in January, Grubhub, the second-largest U.S. restaurant delivery provider, is said to be in talks with Uber, which has reportedly offered to acquire the Chicago-based company in an all-stock transaction. If the transaction goes through, the combined entity would be the largest food […]

Disrupting the disruptors: How restaurants and startups are flipping the table on meal platforms, and why UberEats should be worried

In the five short months between November 2015 and April 2016, Australia’s restaurant industry changed forever. First came UK-born Deliveroo, with its ‘rapid and aggressive’ growth strategy, and then UberEats, the eponymous delivery platform promising to help businesses reach new heights. Over the next four years, these two multinational businesses would turn Australia’s $42 billion cafe, restaurant and takeaway […]

Buying Grubhub Might Be Uber’s Best Chance to Save Itself

San Francisco-based Uber has always run at a loss: In its last quarter before the pandemic, it lost $1.1 billion (a 24 percent increase year-over-year). $461 million of that shortfall was from Uber Eats, its food delivery business. Looking at numbers like that, one might wonder if reports that Uber is in talks to purchase Chicago-based […]

Uber’s Grubhub Play: A Desperate Bid To Save A Business Everyone Hates

Uber UBER’s takeover bid for Grubhub GRUB offers the potential for the rideshare giant to become the dominant player in food delivery, the latest consolidation play in a business hated by both consumers and businesses alike.  The offer, which could value Grubhub at $6.9 billion, would give Uber Eats 55% of the delivery market with the addition of […]