The Uber of ghost kitchens sucks, apparently

For some budding restauranteurs, CloudKitchens might sound like a great opportunity to get off the ground. The service, owned by Uber founder and ex-CEO Travis Kalanick, promises restaurateurs delivery-only kitchens in rented warehouse spaces with low startup fees. But a report from Insider reveals that many CloudKitchens operators are struggling to keep their business alive due to a …

Uber and DoorDash found a way to make food-delivery profitable

The pandemic accelerated competition for on-demand food delivery, and in the United States, there were two clear winners: DoorDash and Uber, which together control 96% of a market that has doubled over the past two years. After years of using venture capital money to keep prices low and buy up smaller competitors along the way, …

Grubhub owner jokes about Katy Perry ad as it takes $3B writedown

Just Eat Takeaway.com, Grubhub’s parent and Europe’s largest meal delivery company, on Wednesday reported a smaller loss for the first half of 2022 and maintained growth and margin forecasts for the full year, promising lower spending on costs such as a recent commercial featuring pop icon Katy Perry. Investors lauded the company’s focus on profitability, which …

High-Flying Lunchbox Lays Off a Third of its Staff

Lunchbox, one of the most prominent and outspoken tech companies in the delivery space, announced a significant round of layoffs just months after acquiring NovaDine and receiving $50 million through a Series B investment round. Company co-founder and CEO Nabeel Alamgir announced the layoffs in a post on LinkedIn, and said it was “an incredibly …

Food delivery companies revamp for cost-of-living crunch

AMSTERDAM/NEW YORK — When food delivery service Grubhub struck a deal with Amazon earlier this month, offering Prime customers a year’s free delivery, shares in rivals slumped. Get ready for rates to rise ‘very, very quickly:’ Benjamin Tal The deal, a lifeline for Grubhub that will increase pressure on its competitors, was the latest example …

Just Eat takes £2.5bn hit on Grubhub as takeaway orders dwindle

Just Eat Takeaway.com revealed a 3 billion euro (£2.5 billion) hit over its US-based Grubhub business as it reported a drop in half-year orders after demand eased with the waning of the pandemic-fuelled boom. Total orders fell 7% in the first half of 2022 compared with a year earlier due to the lifting of lockdowns …

DoorDash, Uber Eats face slowing growth

Food delivery apps DoorDash and Uber Eats are facing slow growth after two years of massive growth due to COVID-19 and making a big marketing push to get back on an expansion track. A prime factor is the current inflation environment and increasing prices at restaurants. The companies are also trying to curtail restaurants from boosting delivery prices, according …

ChowNow CEO: More restaurant tech industry layoffs are coming

ChowNow, a commission-free online ordering platform for restaurants, boasted its best sales month of the year in June. The company is also losing fewer accounts than ever in its history, and it’s client base is at an all-time high. So why did it lay off nearly 100 employees last week? The answer is one CEO Chris Webb …

A food-tech CEO says he went ‘cold turkey’ after being ‘addicted’ to cheap venture capital and laid off 97 staffers to prep for a recession

Chris Webb cofounded ChowNow in 2011 to help independent restaurants with digital orders. The food-tech firm provides the industry a commission-free marketplace for web orders. In an interview with Insider, Webb explained why he cut 97 workers last week. On June 1, JPMorgan CEO Jamie Dimon told investors to prepare for an economic “hurricane.” Chris …