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 […]

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 […]

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 […]

Uber’s Giant Food-Delivery Losses Might Take a While to Eliminate

A week after GrubHub  (GRUB) fell more than 40% post-earnings, Uber (UBER) provided fresh evidence of how tough of a business online food delivery is right now.Uber is down close to 9% following its Q3 report and earnings call, and has made new post-IPO lows along the way. And while there’s a concern or two that one […]

Uber Puts the Brakes on Growth at Any Cost

Uber Technologies Inc. seems to have decided to stop chasing stupid growth. This is exactly what investors wanted, yet the company’s latest results, announced on Monday, show how far Uber has to go to be sustainable and rational. In the third quarter, the total value of Uber rides, restaurant meal deliveries and other transactions increased […]