Empower Delivery Encourages Restaurants to Go All-in on Delivery

Two big names in delivery have teamed up to bring independent restaurants and ghost kitchens a solution that could dramatically improve the economics of their delivery programs. But as restaurant executive Meredith Sandland and ClusterTruck founder Chris Baggott explain, this holy grail of profitable delivery requires restaurants to go all in with their own driver …

DoorDash Adds More Grocers, Retail Chains to its Platform

DoorDash has expanded its merchant mix with a handful of new grocers and retailers including Dick’s Sporting Goods and Big Lots. This further broadening the largest delivery provider in the U.S. beyond meal delivery. The latest announcement lists a variety of new grocery, convenience, sporting goods and home goods sellers including Sprouts Farmers Market, EG …

Two Charts Show Ongoing Third-Party Evolution

Taking stock of the third-party delivery market in the second quarter of 2022 largely continues long-term trends, but there are some notable nuggets. In data from YipitData, a research and analysis firm with a focus on the delivery market, the big market share numbers continue to move in the same direction. DoorDash remains the No. …

Toast built a $30 billion business by defying Silicon Valley and surviving a ‘suicide mission’

Toast’s first backer, Steve Papa, invested in the company because no venture capital firm would write the initial check. By the time Bessemer Venture Partners led the first institutional round in 2015, the company had millions in revenue, 170 employees and was deployed in thousands of restaurants. “We intentionally chose not to put reps in …

Uber’s Infamous Co-founder Wins Microsoft As First US Investor For His Dark Kitchen Startup

Microsoft Corp (NASDAQ: MSFT) has become the first U.S.-based investor in Uber Technologies, Inc (NYSE: UBER), known to have backed CloudKitchens, the “dark kitchen” startup run by the ride-hailing company’s controversial co-founder Travis Kalanick, the Financial Times reports. The investment was part of CloudKitchens’ $850 million funding round that closed in November 2021, valuing it at $15 billion. The cash gain …

Just Eat Takeaway: Amazon Partnership Could Double Grubhub’s Growth

Summary As Amazon partnered with Grubhub, we estimated its user growth opportunities at 62 mln users by leveraging Amazon’s massive Prime members of 160 mln. With the additional users, we expect this to provide incremental transaction volumes for Grubhub of $3.41 bln per year through 2026. In terms of market share of the food delivery …

OVER HALF OF RESTAURANTS THAT USE DOORDASH REPORT REVENUE, CUSTOMER GROWTH

Just over half of restaurants that use DoorDash to handle delivery said the partnership has brought them new customers and incremental revenue, while nearly six in 10 said it has helped increase their overall revenue. That’s according to DoorDash’s latest Economic Impact Report, a study conducted in partnership with Oxford Economics to measure the delivery provider’s …

Tech Tracker: Kitchen United CEO gives details on massive cross-industry fundraising

Tech Tracker rounds up what’s happening in the technology sector of the restaurant industry, including news from restaurants, vendors, digital platforms, and third-party delivery companies. This month, our main story comes from an interview with Kitchen United CEO Michael Montagano, who gave some insight into the ghost kitchen company’s recent $100 million fundraising round, with …

Uber phases out free rewards program

Dive Brief: Uber is ending its free Uber Rewards program, which grants users points for using the Uber and Uber Eats apps, per an email sent to customers over the weekend. Users will stop accruing points at the end of August, but can use their benefits through Oct. 31.  Rewards members can access a free month of …

2021 U.S. food-away-from-home spending 10 percent higher than pre-pandemic levels

In 2021, food spending by U.S. consumers, businesses, and government entities totaled $2.12 trillion, recovering from a sharp decline in 2020 in which the food market was disrupted by the Coronavirus (COVID-19) pandemic and the recession in which food spending totaled $1.81 trillion. Food-at-home spending increased from $888.2 billion in 2020 to $955.6 billion in …